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Unlocking innovation for growth

"We are pleased to report results showing strong momentum as our strategy delivers. 2019 was a year of continued transformation into a tech and data-enabled business, positioning us well for medium term growth. We enter 2020 in a strong strategic position and we are encouraged that the market has validated our AutoSave concept.

Our progress over the last 12 months, which includes the
growth of our AutoSave business to over 300,000 customers and the successful launch of our customer focused proposition in GoCompare, has demonstrated our ability to invest and innovate to revolutionise the industry."

Dear Shareholders,

It has been another exciting year as we continue to evolve the Group through the growth of our AutoSave business, whilst generating further momentum on our core GoCompare business. This was especially the case in the second half of the year, as we innovated in the price comparison sector with the relaunch of our GoCompare brand proposition.

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We are revolutionising the price comparison industry with the first real innovation in years and we continue to position ourselves for growth beyond insurance comparison.

I am always proud of the GoCo Group team and all their achievements. The Group has a consistent focus on saving customers time and money, and we are all working relentlessly to ensure we have a differentiated offer in an incredibly competitive market. Across all our locations we are unlocking people’s potential to outperform, and I am thankful for the hard work and commitment of our staff.

Innovating on the core business

GoCompare operates in a highly competitive price comparison market and we have taken steps to strengthen our position as the comparison service that looks after its customers at every stage of the insurance purchase process. This year, we launched our £250 excess offer for car insurance with a new brand proposition ‘When It Matters, GoCompare’ to drive awareness and preference, and to lay the foundations for a stronger ongoing customer relationship over time.

Although early days, the initial results are positive; car insurance quote conversion has improved and an underlying car insurance revenue growth of +4% in Q41 meant we finished the year with good momentum. Despite this investment in the second half of the year, our relentless focus on improving conversion and our continued disciplined approach to profitability mean we have been able to increase marketing margin through the year. We also reallocated spend away from generic Google search to above-the-line advertising focused on driving longer-term brand awareness and preference, leaving the GoCompare business in a far better position to deliver long-term profit growth.

Matthew Crummack

GoCo Group CEO

Notes:
1. Underlying car insurance revenue growth excluding any one-off adjustments.
2. Live customers are defined as those who have provided full switching authority to enable a switch, net of churned customers.