Simon Nixon, the founder of moneysupermarket.com, will be worth as much as £500 million when the financial price comparison website makes its debut on the London Stock Exchange with an expected value of £1 billion.

The company announced its intention to float yesterday and is expected to list in the final week of July, netting Mr Nixon a huge return on the £4,000 he invested to set up in business 14 years ago.

The estimated floated valuation of £1 billion is equal to about ten times revenue after the company reported sales of £104 million for the 12 months to December 31.

Moneysupermarket.com has brought on board Gerald Corbett, the former chief executive of Railtrack and the previous chairman of Woolworths, as its new chairman.

Over the past three years, the company’s pre-tax profits have declined, from £15.9 million in 2004 to £14.7 million the following year to £11.7 million in 2006. However, over the same period its directors have increased the amount of profits taken out of the company to pay themselves.

Last year they took a special dividend worth £20.9 million, of which Mr Nixon was paid £15 million. In 2006 the directors took out £8.4 million.

Stripping out special dividends, earnings before interest, tax, depreciation and amortisation (Ebitda) increased, rising from £23.3 million in 2005 to £33 million last year.

Mr Nixon, who started his business in 1993 before transforming it into money-supermarket.com in 1999, will retain a 50 per cent stake in the company once it comes to market, while senior managers, who hold just over 10 per cent, will continue to own some of the equity. After the flotation, Mr Nixon, who is the company’s chief executive, will be prevented from selling his shares for three years.

The company, which also runs travelsupermarket.com, which allows shoppers to compare the price of flights and hotels, has been considering floating since 2003.

However, it has been prevented from listing by “difficult” negotiations with Duncan Cameron, who was moneysupermarket.com’s other major shareholder until he was bought out for £162 million this month. Mr Cameron will retain a stake, believed to be about 5 per cent, in the floated company.

It is understood that Mr Nixon and Mr Cameron have not spoken to each other since 2001, apparently because of a disagreement over strategy.

Mr Nixon said yesterday that talks about securing a price for Mr Cameron’s 48.5 per cent holding in moneysupermarket.com have been going on for three years, describing negotiations as “long and painful”.

The company will use the proceeds of the float to pay back debt borrowed to buy out Mr Cameron as well as securing a war chest for potential acquisitions, though Mr Nixon said that the company had not identified any potential targets. It will also increase its TV and newspaper advertising spend from £6 million last year to £16 million.

In March the Marquess of Milford Haven, a cousin to the Queen, made £90 million when he sold uSwitch, also a price comparison site, for £210 million to Scripps, the American media group. Both moneysupermarket.com and uSwitch are hoping to expand their businesses overseas.

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