Moneysupermarket’s share price took a hiding today as the financial comparison site revealed that it expected earnings to be flat in 2018.
In late-morning trading the share price had fallen over 16% to 276.
In a statement to the stock market, the company said: “Our core markets are expected to grow at around 6-7% and we forecast our growth to be slower than that in 2018, accelerating afterwards.”
It added: “We have started the year at a similar growth rate to last year. This means that adjusted EBITDA for 2018 is expected to be broadly flat before growth resumes from 2019 onwards.”
The company’s final results showed a 5.3% rise in pre-tax profits to £96.1m for 2017 and the Board pledged to spend £5m on boosting its product engineering teams to improve customer experience.
However, the firm also revealed that plans to revamp the business would cost up to £9m in 2018. Chief executive Mark Lewis, who joined the group last summer, said: “We are committed to leading the way in price comparison to make saving with us easier, quicker and simpler.
“Our goal is to offer our customers ways to save that they didn’t know existed and to do so in a way that is as effortless as we can make it.”
The growth warning comes after a difficult six months for the group. In summer 2017, the company warned that profits would be hit by a slowdown in energy switching.