Mony Group hikes dividend, reports higher profit despite car insurance decline

Published 21/07/2025, 07:50
© Reuters.

Investing.com -- Mony Group plc (LON:MONY) on Monday reported a 4% rise in adjusted basic earnings per share to 9.3p for the six months ended June 30,  up from 8.9p a year earlier. 

The British company raised its interim dividend by 1% to 3.3p per share and maintained its full-year adjusted EBITDA guidance within its published range of £137 million to £150 million.

Group revenue increased 1% to £225.3 million, while adjusted EBITDA rose 2% to £75.1 million. Profit after tax rose to £45.6 million from £44.1 million. Basic earnings per share were 8.6p, up from 8.3p.

Gross profit declined 3% to £147.7 million and gross margin narrowed to 66%, reflecting a contraction in the car insurance segment, the launch of first purchase rewards, and growth in lower-margin B2B activity. 

Operating costs fell 6% to £86.5 million, with administrative expenses down 7% and distribution expenses 1% lower.

Insurance revenue declined 2% to £117.7 million. RBC stated, “Within insurance, Car was -9%, with Home +4%, with life and travel also performing well.” Money revenue increased 4% to £52.8 million. 

RBC noted, “In Money, the group flagged strong borrowing activity, whilst robust savings offset lower current account switching.” Home services rose 29% to £21.6 million. 

According to RBC, “In Home Services, the group flagged the gradual recovery in the energy market.” Travel was down 2% at £11.4 million, and cashback declined 9% to £27.2 million.

Adjusted EBITDA margins declined in insurance to 56% from 60%, in money to 65% from 69%, and in travel to 17% from 22%. Margins improved in home services to 67% from 64% and in cashback to 15% from 13%.

Estimated customer savings fell to £1.4 billion from £1.7 billion, reflecting lower switching volumes. The marketing margin decreased to 57% from 60%. 

Active users across MoneySuperMarket and Quidco declined to 13 million from 14.3 million. Revenue per user rose to £19.83 from £18.24. Cross-channel enquiry fell to 22% from 24%.

Operating cash flow declined 16% to £43.7 million. Net debt was £18.4 million, compared with net cash of £8.4 million at year-end, reflecting £28.7 million in cash and £45 million in borrowings.

Capital expenditures totaled £5.1 million. Share repurchases amounted to £13.3 million. 

Total (EPA:TTEF) shareholder returns for 2025 are projected at £96 million. The interim dividend is payable Sept. 8 to shareholders on record as of Aug. 1.

The company recorded a £2.2 million provision for irrecoverable VAT due to ongoing discussions with HMRC. The effective tax rate was 23.7%, compared with 24% a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.