Moneysupermarket.com shares plunge 32%

8 July 2008

The price comparison website warned in its six month trading update for 2008 that the loans market was proving extremely challenging.

With First Plus' refusing to accept any more business from August 9, Moneysupermarket.com says it is looking source "additional capacity" elsewhere by reviewing costs and loans advertising spend.

The group says the impact on its 2008 revenues is expected be in the order of £7m.

Simon Nixon, chief executive of moneysupermarket.com, says: "In our pre-close update we warned that trading in the loans and mortgages sector was extremely challenging.

"This is evidenced today by the withdrawal of Barclays' main secured loan brand, First Plus, from the market.

"Over the coming days we will work to mitigate the impact of this on our business. Trading across the rest of our business remains in line with our expectations."

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