BGL posts £54m profits

The BGL Group increased its profits from £43m to £54m, helped by its innovative comparethemeerkat advertising campaign.

Growth within the group’s price comparison site, comparethemarket.com, the addition of new affinity partners for Junction, and the ongoing performance of its ‘own brand’ insurance products, helped it increase profits.

BGL chief executive Peter Winslow said: “Economic conditions have put the pressure on all UK businesses. In our case, the rapid growth we’ve seen in previous years has been somewhat tempered. We have been in a fortunate position, however, having spent the previous year streamlining processes and driving efficiency. As a result we were able to stay ahead of market changes. I’m very proud that we have delivered significant profit in such a challenging environment.”

The Group’s financial results are as follows:

Total Income -£287M

Income Growth - 3 per cent

Pre tax profit -£54 million

Profit Growth -24 per cent

Number of Customers -2.2 million

Junction and comparethemarket.com drove significant income for the Group, both outperforming their plans. Junction gained three major new partners over the financial year, winning contracts with HSBC, Barclays and RAC to devise and sell new motor insurance products for the brands.

Through its innovative ‘comparethemeerkat’ advertising campaign, comparethemarket.com gained market share, which in turn drove major increases in sales.

BGL Group’s own brands also had a successful year, with eco car insurance brand ibuyeco developing its proposition to enable customers to choose an environmental charity to be supported alongside their motor insurance. The Budget and Bennetts brands maintained market share despite hot competition for customers.

Peter Winslow added: “With the downturn hitting consumers’ pockets, there was a marked increase in the need to shop around on price. This was good news for comparethemarket.com as a price comparison site, but meant that our insurance products were under extreme pressure to deliver both quality and value. We got the balance right, through careful online marketing and a continued focus on understanding the customer.

“What I’m particularly proud of is that in a difficult environment, we never lost sight of one of the fundamental values of our business – giving something back. Over the course of the year we donated more than £150,000 to good causes, both locally and on a national level. Our employees are very much community focused, and in addition to financial support, lent a hand through many hours volunteering and individual fundraising.”