Positive results for GoCompare
GoCompare has reported a 19% increase in revenues for 2016 (£142m) with operating profits up 30% to £30m.
The results, which are better than analysts were expecting following its demerger from insurer Esure, have seen an eight per cent surge in share price.
‘We start 2017 from a position of confidence and look forward to delivering another year of strong growth,’ said Matthew Crummack, chief executive.
GoCompare has a market value of around £300m, making it around a third of the size of its former parent Esure. The site was founded by Hayley Parsons in Newport in 2006, before Esure bought the firm in slices to take full ownership in 2014. It demerged the business in November 2016.
Nicholas Hyett, equity analyst at Hargreaves Lansdown said, ‘It’s still early days for GoCompare.com as a standalone business, but the tenor of today’s results is certainly positive. Rapid growth in both revenues and profits are impressive in a competitive, if growing, market.’