Angela Jameson
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Moneysupermarket.com, the price comparison web site, is expecting to meet City forecasts as savers rush to compare borrowing costs against fears over the strength of the economy.
The price comparison group said today that it was on track to meet analysts' expectations in the second half of the year, sending its shares up 14.78 per cent to 149.5p, just above its 158p listing price when it floated in London in July.
The group, which allows users to compare their borrowing costs on credit cards, insurance and travel, has been helped by savers looking to find new places to put their money in the wake of Northern Rock's problems.
However, the business is anticipating that traffic derived from mortgage applications and credit applications will slow in the coming months.
In a trading statement for the six months to December 31, Moneysupermarket.com said that its revenues for the year would be no less than £160.9 million, generating adjusted earnings of £51.3 million.
Simon Nixon, the chief executive and founder of Moneysupermarket.com, said that uncertainty in the financial markets was continuing.
He said: "This has had little impact on our trading to date but visibility continues to remain limited."
One side-effect of the credit market volatility is that some providers have recently tightened their underwriting criteria and raised their pricing to consumers.
Several providers within the sub-prime secured lending space have also withdrawn from the market.
Revenues from the company's money products are expected to be 30 per cent higher than in the same period last year.
Revenues from insurance products for the second half of 2007 will be 75 per cent higher than in the same period last year.
The home services division, which includes gas and electricity comparison websites, has seen a significant increase in traffic and will report revenues 140 per cent higher.
Mr Nixon said: "Overall the group has had a very good year growing revenues and adjusted ebitda [earnings before interest, taxes, depreciation and amortisation] in excess of 50 per cent. Second-half trading has remained strong."
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