Gocompare sees 22% jump in half-year earnings

PRICE comparison site Gocompare has said it is on track for a 22% leap in half-year earnings and hopes for further trading cheer as its overhaul bears fruit.

The Newport-based firm hailed “organisational and operational transformations” made at the start of the year after it was spun out of insurance giant esure last November.

Boss Matthew Crummack said trading had been boosted by the changes, with improvements set to ramp up over the rest of the year.

Gocompare, which allows customers to compare rates of insurance policies, financial products and energy tariffs, is expecting to post half-year underlying operating profits of around £17.5m.

It said sales rose 4% to around £75.8m in the six months to June 30.

The group also announced its first strategic investment, with a minority stake bought in digital “robo-adviser” Mortgage Gym, which is set to launch in September.

Shares in Gocompare lifted 4% after the update.

Mr Crummack said: “We have made strong progress in delivering improvements to our core business following organisational and operational transformations early in the year.

“This created positive momentum in trading performance which, as anticipated, will accelerate through the year.”

He added the group was “confident” for the full-year outlook.

Its stake in Mortgage Gym sees the group join a raft of technology investors including Gaby Salem, of Wharton Asset Management, China Pacific Capital, Trifecta Capital, and former Deutsche Bank chief operating officer Henry Ritchotte.

The service will allow homebuyers to complete their mortgage application online in 15 minutes through a free advice website, with regulated robo-advice and access to live advisers.

Gocompare demerged from esure and listed on the London Stock Exchange on November 3 last year.

Full-year results in March showed adjusted operating profits jumping 30% to £30m in 2016, while revenues rose 20% to £142.1m.