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Moneysupermarket.com Plans London Flotation

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whilst I'm delighted for some of the guys I know at moneysupermarket I can't help thinking that floatations these days are carefully crafted by spin and aimed towards the private punter (ultimately) as opposed to any sound business judgements by brokers/underwriters etc. The company generates sales of 100mil with profits (perhaps) at 10-15% and 'The City' is talking of a valuation circa 1 bil? :blink:

http://www.reuters.com/article/technology-...937126220070629

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Guest DissipatedYouthIsValuable
whilst I'm delighted for some of the guys I know at moneysupermarket I can't help thinking that floatations these days are carefully crafted by spin and aimed towards the private punter (ultimately) as opposed to any sound business judgements by brokers/underwriters etc. The company generates sales of 100mil with profits (perhaps) at 10-15% and 'The City' is talking of a valuation circa 1 bil? :blink:

http://www.reuters.com/article/technology-...937126220070629

Only a P/E of 100, what can possibly go wrong?

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It generated revenue of 104.5 million pounds in 2006 with core earnings of 33 million pounds in the year to Dec. 31.

Last year Nixon told Reuters he expected to list within two years, saying "we'll get to a point where we won't be able to fund our own growth". He said there would be opportunities for acquisitions in Britain and Europe.

Slightly more profitable than stated earlier in the thread, and possible strong growth prospects. Assuming the finance cost for purchase is roughly 7% (judging by a recent article on the debt markets not unreasonable), with a 7.5% average annual growth they'd be profit making in 15 years, 10% growth in 10 years, 20% growth in about 5 years.

All depends on the growth expectations and finance costs, £1bn doesn't seem unreasonable. Although I personally can't stand the site, I much prefer moneyextra that'll just tell me what's out there without getting an advisor to call me back.

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Slightly more profitable than stated earlier in the thread, and possible strong growth prospects. Assuming the finance cost for purchase is roughly 7% (judging by a recent article on the debt markets not unreasonable), with a 7.5% average annual growth they'd be profit making in 15 years, 10% growth in 10 years, 20% growth in about 5 years.

All depends on the growth expectations and finance costs, £1bn doesn't seem unreasonable. Although I personally can't stand the site, I much prefer moneyextra that'll just tell me what's out there without getting an advisor to call me back.

but this is exactly what I meant, all a bit too sketchy "core earnings/ revenue" how's about simple language of turnover and profit (after tax) and what the current level of debt is and how the original director was 'paid off' his 160+mil, or have Credit Suisse underwritten that as part of after float proceeds having created an excellent pr news story? I get the impression that floats are losing plenty of credibility lately and there's very little substance behind them, take for example sports direct..jeez..what a mess and yet the city had no intention of standing up to Mike Ashley 'he who has the gold etc'.

A comparison web site worth 1bil? TBH I reckon the real worth is in lead generation/transactions and not the 'fluff'. Plenty of new entrants; go compare for example.. <_<

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but this is exactly what I meant, all a bit too sketchy "core earnings/ revenue" how's about simple language of turnover and profit (after tax) and what the current level of debt is and how the original director was 'paid off' his 160+mil, or have Credit Suisse underwritten that as part of after float proceeds having created an excellent pr news story? I get the impression that floats are losing plenty of credibility lately and there's very little substance behind them, take for example sports direct..jeez..what a mess and yet the city had no intention of standing up to Mike Ashley 'he who has the gold etc'.

A comparison web site worth 1bil? TBH I reckon the real worth is in lead generation/transactions and not the 'fluff'. Plenty of new entrants; go compare for example.. <_<

#

They're charging insurers for being listed too arne't they?

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#

They're charging insurers for being listed too arne't they?

there's plenty of scope for raising revenue, moneyfacts charge to be included in their best buy tables, which some may suggest skews their objectivity :ph34r:

TBH back on the moneysupermarket thread my overall concerns are where does the extra 700 mil of value come from? Partner buys the other guy out for 160mil valuing the company at 330mil, but the new valuation is suddenly 1 bil? Does not add up. Perhaps the 330mil valuation does, but that wouldn't give enough scope to pay back debt, pay off partner and drive the company forward. The 700mil is 'froth' IMHO but it's obviously going to 'get away', the brokers/market makers/sponsors whatever.. must have placed a fair share of the stock through institutions already.

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but this is exactly what I meant, all a bit too sketchy "core earnings/ revenue" how's about simple language of turnover and profit (after tax) and what the current level of debt is and how the original director was 'paid off' his 160+mil, or have Credit Suisse underwritten that as part of after float proceeds having created an excellent pr news story? I get the impression that floats are losing plenty of credibility lately and there's very little substance behind them, take for example sports direct..jeez..what a mess and yet the city had no intention of standing up to Mike Ashley 'he who has the gold etc'.

A comparison web site worth 1bil? TBH I reckon the real worth is in lead generation/transactions and not the 'fluff'. Plenty of new entrants; go compare for example.. <_<

Hey, not venturing any opinions at all, just a quick bit of number crunching to try and gauge the sort of numbers they're coming up with to arrive at $1bn. Personally I fvcking hate the site and won't touch it with a 20 foot pointy stick and reckon it'll come a cropper with the new entrants, meaning the growth expectations implied by the sale price are wrong and someone's going to get fvcked.

Just saying from a crude numbers perspective if you reckon the company will do well it's not a mental purchase price, and if you reckon it won't do well why touch it at all?

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Hey, not venturing any opinions at all, just a quick bit of number crunching to try and gauge the sort of numbers they're coming up with to arrive at $1bn. Personally I fvcking hate the site and won't touch it with a 20 foot pointy stick and reckon it'll come a cropper with the new entrants, meaning the growth expectations implied by the sale price are wrong and someone's going to get fvcked.

Just saying from a crude numbers perspective if you reckon the company will do well it's not a mental purchase price, and if you reckon it won't do well why touch it at all?

Well considering that confused.com made £23m that is an awful lot of money in the market. However the barriers of entry are low and I'm waiting for one of the affialiate cashback sites to enter this market. We'll find you the lowest premium and then give you money if you buy it.

That sort of deal won't need much to advertise it.

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Thats even higher than Googles IPO was.

google ipo was $85 now a share costs you $525.

a nice 600% increase in less than 3 years

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Well considering that confused.com made £23m that is an awful lot of money in the market. However the barriers of entry are low and I'm waiting for one of the affialiate cashback sites to enter this market. We'll find you the lowest premium and then give you money if you buy it.

That sort of deal won't need much to advertise it.

I'd expect a lot of money in the market . . . every personal lines insurance there is, mortgage, loans . . . ridiculous sums of money that used to go to face to face brokers with huge cost bases, and now there's aggregator sites that can do it all automatically for a fraction of the cost, it's a huge growth area.

As for sites that actually give a good deal to the consumer, I'd love to think something like that would win but it won't. Why have poor profit margins on a site that only 10% of people will realise is actually the best when you can have high profit margins on a site that the remaining 90% of idiots will use without realising the biases and weaknesses?

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I'd expect a lot of money in the market . . . every personal lines insurance there is, mortgage, loans . . . ridiculous sums of money that used to go to face to face brokers with huge cost bases, and now there's aggregator sites that can do it all automatically for a fraction of the cost, it's a huge growth area.

As for sites that actually give a good deal to the consumer, I'd love to think something like that would win but it won't. Why have poor profit margins on a site that only 10% of people will realise is actually the best when you can have high profit margins on a site that the remaining 90% of idiots will use without realising the biases and weaknesses?

According to blurb the company is debt free and Simon Nixon paid himself 15mil last year, although they have to find 165mil to give back to the former partner as presumably it hasn't been paid, otherwise it'd be a debt? :huh:

TBH I struugle with it all, when you look at for example smartnewhomes being bought for 16mil by a newspaper outfit that could then use it for so many cross marketing purposes I just don't get this super valuation. To me, I realise it's finger in the air, the moneysupermarket proposition is worth 150mil. Still good luck to them, some top people there

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Sounds like 'Take the money and run', they know that the market for borrowing is going to decline in the near future, credit squeeze on the way and takings will be down by quite a lot, quite soon. This of course is part of the 'New Face' of capitalism, whereby the big boys make millions by the 100 and use their crafty mates in the city to convince the ordinary punters to take the risk, (and the pension funds who also know whats going on but their attitude is ' who gives a sh*t) )

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It has first quarter earnings of £10m, on a turnover of £40m. Great going, but it does make the valuation that the founders valued it at sound pretty accurate. To value it at £1bn, you need an awful lot of growth. In fact, if I dig out my corporate finance book I could probably tell you the expected annualised growth rate to give that valuation.

Considering the "new entrant" threat is massive with this site (there now seem to be more sites comparing prices of flat screen TVs than there sites selling them!), the chances of the value rising that quickly must be pretty slim.

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Sounds like 'Take the money and run', they know that the market for borrowing is going to decline in the near future, credit squeeze on the way and takings will be down by quite a lot, quite soon. This of course is part of the 'New Face' of capitalism, whereby the big boys make millions by the 100 and use their crafty mates in the city to convince the ordinary punters to take the risk, (and the pension funds who also know whats going on but their attitude is ' who gives a sh*t) )

agree to that 100%

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google ipo was $85 now a share costs you $525.

a nice 600% increase in less than 3 years

I think Google is just the sort of business that can get money straight from the Fed nipple. Who's going to know?

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google ipo was $85 now a share costs you $525.

a nice 600% increase in less than 3 years

Perhaps Lastminute.com would be a better analogy:

Listing price: 500p (2000)

High: 555p (2000)

Low: 17p (2001)

De-listing price: 165p (2005)

Edited by Ah-so

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Today's Times is of the same opinion:

"Touch of the Lastminute disguises real value"

http://business.timesonline.co.uk/tol/busi...icle2007713.ece

Indeed. A valuation of £1bn would propel the company high into the FTSE 250 above many established household names. It's a good site, and I've used it a few times before, but these things can change so damned quickly. Especially when you've so many competitors, small and large snapping at your heels.

I second your statement about there being more price-comparison sites than there are sellers - I have one myself. :P Self-built from scratch and in need of a bit of love if I'm honest. This news will serve to build up more competition - to spur on webmasters to build sites offering financial products. Even if it is more fraught nowadays since the 'new' FSA regulations on financial product promotion.

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I think Google is just the sort of business that can get money straight from the Fed nipple. Who's going to know?

Google is a search engine folks use to find stuff like the price of cheap holidays and cheap car insurance, to value something that simple at billions just goes to show that someone somewhere is smoking an aweful amount of crack, we will look back at these days in years to come and think, what the ***k was that all about.

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Google is a search engine folks use to find stuff like the price of cheap holidays and cheap car insurance, to value something that simple at billions just goes to show that someone somewhere is smoking an aweful amount of crack, we will look back at these days in years to come and think, what the ***k was that all about.

It is not valued like that because of what it does, but because of how much money it makes - a very old fashioned way of valuing companies but still quite effective! It has a turnover of well over $10bn a year and profits running into the billions.

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It is not valued like that because of what it does, but because of how much money it makes - a very old fashioned way of valuing companies but still quite effective! It has a turnover of well over $10bn a year and profits running into the billions.

I'll repeat again, its only a search engine on a server somewhere that any spotty oik in a Metallica T-shirt can invent, ok the word google is now in the mindset of 1/2 the planet but its only popular until the next one comes along, I've just thought of one now, booble, its looks for adult material, damn, already taken.

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