Owner of price comparison site refinances bank facilities
Gocompare’s owner has completed a refinancing which will help see through its disruptive technology strategy.
GoCo has invested heavily in Weflip and Look After My Bills, which are exceeding all expectations in pulling in customers to autosave, a device which flips policyholders to cheaper companies on energy and gas.
There are no announced plans yet to use the technology in general insurance, although the company has refused to rule out such a move and rivals are watching closely on any developments.
The new banking package - comprising a four-year revolving credit facility of £105m and a four-year term loan of £15m with an option to extend for a further year - will help fund the disruptive technology strategy.
Chief finance officer Nick Wrighton said: “The agreement secures an increased and more flexible facility, providing the Group with capacity to deliver against its strategy of accelerating the customer numbers in its AutoSave business whilst maintaining a disciplined cost of customer acquisition.”
Wrighton, who’s firm recently signed a deal with AXA Partners, added: ”I am pleased that we have been able to agree attractive terms with the banks and that they are supportive of our strategy, which we believe will lead to a significantly higher EBITDA margin profile for GoCo Group and be transformative to Group earnings by 2022.”
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