Moneysupermarket fell sharply after it warned investors to brace themselves for operating profits at the lower end of forecasts, saying that a lack of blockbuster energy deals had meant that it was transferring fewer customers than hoped to new suppliers.
Shares in the price comparison website lost as much as 14 per cent after a reported it 5 per cent drop in revenues in its home services unit in the three months to the end of June. Over the last six months revenues at the business, which helps householders to switch energy suppliers, fell by a third.
Against the backdrop of political threats to introduce an energy price cap, Mark Lewis, chief executive, said that “the energy market continues to evolve and the lack of blockbuster energy deals from providers meant we didn’t collectively switch as many people as last year”.
Providing energy services marks a small part of Moneysupermarkets business and it otherwise notched up strong growth in its other markets, including travel, insurance, credit cards and loans.
Overall revenues grew by 5 per cent to £165.3 million in the six months and operating profits — the company’s preferred measure of performance — grew by 4 per cent to £48.5 million.
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Shares recovered some of their poise to stand just shy of 7 per cent down, at 334¾p, approaching noon.
London’s blue-chips were in positive territory, with Ashtead, the equipment hire group, boosted by strong results from a peer in the US, where it generates the vast majority of its earnings. Ashtead gained 51p to £17.10 as investors also applauded yesterday’s Canadian acquisition.
The FTSE 100 gained 45.22 points to 7,476.13 as financial stocks, including Standard Chartered, the insurer Admiral and the London Stock Exchange, were pushed higher.
Easyjet led the fallers, shedding more than 5 per cent, or 71p, to £13.47½ despite upgrading its profit forecast. Investors were fretting after Easyjet said that revenues over the six months to the end of September were likely to contract by about 2 per cent based on bookings already secured for the fourth quarter. That dragged down International Airlines Group, owner of British Airways, which was 13p lower at 606p.
The FTSE 250 gained 30.04 points to 19,724.07, despite Moneysupermarket’s struggles. Carillion, the construction and support services group, resumed its downward fall, off 2½p at 65¼p.
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Sports Direct was a big winner, despite its 60 per cent slide in annual profits. Shares rose 24p, or more than 7.5 per cent, to 324½p as Mike Ashley, its billionaire chief executive, said that he expected underlying earnings this year to grow by as much as 15 per cent.