Share Dealing
Blue Chip Bulletin: Confused.com drags on Admiral
Joe McGrath, 02 March 2011
A corporate communication blunder at Admiral Group (ADM.L) ensured its Confused.com brand saw profits tumble by 34 per cent to £16.9 million.
Better-executed advertising strategies by CompareTheMarket.com and GoCompare.com hit market share and left revenue at Confused down 10 per cent to £71.8 million from £80.1 million in 2009.
The news was an unwelcome distraction for Admiral on what was an otherwise healthy results announcement.
The group announced a 23 per cent rise in profits for 2010 on 2009 from £215.8 million to 265.5 million.
However, Henry Engelhardt, group chief executive of Admiral Group admitted that the Confused.com division had endured its toughest year since launch, recording falls in market share, revenue and operating profit.
He added, ‘UK price comparison remains a fiercely competitive market, with substantial amounts spent on advertising by the four main incumbents.
‘The key cause was a disappointing media campaign during the year which led to falls in market share in motor and home insurance comparison.
‘Revenue from products other than motor insurance totalled £15.9 million down from £18.3 million in 2009.’
Admiral Group’s final dividend will rise, however, despite the hugely disappointing performance of Confused.com.
A final dividend of 35.5 pence per share has been confirmed to be paid on 10 June 2011 and the ex-dividend date will be 18 May 2011.
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