iSelect lifted by health and car insurance

Newly-listed comparison website iSelect has reported that “strong growth” in its health and car insurance divisions underpinned interim revenue growth of 18 per cent to $55.8 million.
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The company increased earnings before interest, tax, depreciation and amortisation to $6.8 million, from $3.9 million, in the six months ended December 31.

Net profit rose a very large 1,698 per cent to $3.7 million, up from just $205,000 in the previous corresponding period.

Chairman Damien Waller said the company was pleased to meet EBITDA and revenue guidance for the half made in October last year, at which point the company downgraded its revenue forecasts made in its prospectus.

The downgrade followed a rough start to its time as a listed company, which included the resignation of chief executive Matt McCann just four months after its June 2013 debut.

The company is still searching for a new chief executive.

iSelect founds itself in trouble with regulators last September after its shares dived following the company’s June 2013 float.

Corporate watchdog the Australian Securities and Investments Commission asked iSelect to hand over all its records relating to an August 29 profit announcement, which revealed the company had missed its earnings targets.

Also requested were documents relating to iSelect’s announcement on the same day that it expected to meet the earnings forecast for the 2013 calendar year contained in its prospectus.

“The solid half on half growth reported today shows that the fundamentals of our business remain very strong,” Mr Waller said.

The company’s share price has declined 21 per cent since listing in June. It closed at $1.24 on Wednesday.

There was no dividend declared for the period.

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