SHARE PEREL OF THE WEEK: Go Compare looks forward to expanding beyond its traditional insurance stronghold
City & Finance Reporter for the Daily Mail
Who is it? Go Compare, perhaps best known for his opera-singing ads, is a price comparison site set up by mom Hayley Parsons at her kitchen table.
This allows consumers to compare the price of products and ask providers for compensation when one of their products is sold through the site.
What is the most recent? The company wants to expand beyond its traditional insurance stronghold, particularly to domestic gas and electricity and consumer financing.
Touch the right tone: Go Compare is perhaps best known for his opera-singing ads
Who supports it? Parsons sold its stake for £ 44m in 2014. Now the company is supported by names, including Fidelity International and Jupiter Asset Management. Insurance magnate Sir Peter Wood has a 25.6 percent stake.
Why would you invest? Laith Khalaf, investment analyst at Hargreaves Lansdown, says: & # 39; Due to the strong cash generation and steady earnings growth, the debt is kept under control and thanks to the extra headroom, Go Compare can finance the investment and dividends. The comparative industry seems to be growing in the coming years, as more consumers go online to find the best bargains. & # 39;
… And why not do that Although price comparison sites are becoming more and more mainstream, this does not necessarily mean that Go Compare will benefit.
Khalaf explains: "Go Compare itself can be seen as a first wave digital disrupter, but that offers no immunity to be disturbed yourself.
Indeed, recent reports that Amazon may be looking for its way to the UK market for price comparison sites should be a bit of care for established companies like Go Compare. & # 39;