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Financial and Business Review

Moneysupermarket.com Group PLC (the ‘Company') was formed as a new holding company on 14 March 2007 and it acquired Moneysupermarket.com Financial Group Limited and its subsidiaries (together the ‘Group') on 22 June 2007. Accordingly the Group is presenting group results for the year ended 31 December 2008 and the period ended 31 December 2007. These have been presented here. Revenue in 2008 was £178.8m (2007: £88.3m), and after an impairment charge of £70.0m, generated a net loss after tax of £59.1m (2007: profit £9.4m).

The Group is also presenting below an Adjusted Income Statement for the years ended 31 December 2008 and 31 December 2007 to show what the financial results would have been had the Company acquired Moneysupermarket.com Financial Group Limited on 1 January 2006. The Directors believe that this will allow users of the financial information to gain a better understanding of the underlying performance of the business. This is consistent with the presentation made last year. The Adjusted Income Statement forms the basis of the commentary contained in the Financial and Business Review presented below unless otherwise stated.

Adjusted Income Statemet

for the year ended 31 December 2008

	Actual 2008 £000	Proforma 2007 £000
Revenue	178,800	162,882
Internet	172,532	152,220
Intermediary	6,268	10,662
Cost of sales	(62,064)	(54,268)
Gross profit	116,736	108,614
Distribution expenses	(21,618)	(19,640)
Administrative expenses – excluding Directors’ and
senior managers’ profit share and discretionary bonuses, and share based compensation	(75,310)	(62,837)
Administrative expenses – Directors’ and senior managers’ profit share and discretionary bonuses	-	(4,967)
Administrative expenses – share based compensation	(4,325)	(4,433)
Administrative expenses – impairment of goodwill	(70,000)	-
Administrative expenses	(149,635)	(72,237)
(Loss)/profit from operating activities	(54,517)	16,737
Adjusted EBITDA
(Loss)/profit from operating activities	(54,517)	16,737
Directors’ and senior managers’ profit share and discretionary bonuses	-	4,967
Share based compensation	4,163	4,433
Amortisation of intangible assets	25,200	25,200
Impairment of goodwill	70,000	-
Depreciation	3,543	1,612
Adjusted EBITDA	48,389	52,949
Adjusted earnings per ordinary share:
– basic	6.9p	7.5p
– diluted	6.8p	7.3p

Notes
Basis of preparation

The adjusted results show the trading results of the Group for the years ended 31 December 2008 and 31 December 2007 adjusted for the following assumptions:

The acquisition of Moneysupermarket.com Financial Group Limited by the Company occurred debt free on 1 January 2006.
The charge for share options is the average expected charge over the vesting period of options still to be exercised following the listing of the Company on 31 July 2007.

Adjusted basic and diluted earnings per ordinary share figures which have been included are based on an adjusted net profit figure assuming that the number of ordinary shares and options in issue at 31 December 2007 had been in issue since 1 January 2007. Options and shares issued since 28 December 2007 have been included in the adjusted diluted earnings per share calculation on a pro rata basis. The adjusted earnings per share calculations assume a 30% tax rate for 2007 and a 28.5% rate for 2008.

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Financial and Business Review