Moneysupermarket founder in 17m windfall despite 90 per cent profit dive
MONEYSUPERMARKET.COM yesterday shocked the market when it announced a “special dividend”, despite a profit drop of nearly 90 per cent, landing its former chief executive a cool £16.8m.
The price comparison website reported a first-half pre-tax profit of £1.9m, down from £14.4m in the same period last year, but moved to soften the blow by giving investors a “special” 4.93p per share dividend.
The group said the payout to investors, which includes an interim dividend of 1.3p, underlined its “confidence in the ability of the business to continue to generate cash”.
The biggest single beneficiary will be the group’s co-founder and former chief executive Simon Nixon, who owns 53 per cent of the company. The entrepreneur stepped down as chief executive earlier this year.
Moneysupermarket said that earnings in the six-months had dropped by 31 per cent to £68.5m but gave a positive outlook for the future.
The group, which has been heavily affected by the declines in lending during the credit crunch, has cut more than a quarter of its workforce over the past year.