LONDON (Alliance News) - Gocompare Group PLC on Tuesday said Chair Peter Wood has raised his stake his stake to 29.9% in the belief that the current share price does not reflect the momentum in the business, particularly positive on its new 'weflip' service.
Shares in the online price comparison company were up 5.7% at 68.30 pence on Tuesday in London.
Wood bought the 17.8 million Gocompare shares on Monday for 63.70 pence per share in a deal worth GBP11.3 million.
"My share purchase underlines my view, which is shared by my fellow board members, that the current Gocompare share price does not fully reflect the operational and strategic momentum in the business," Wood said.
"I'm particularly excited about our weflip brand and the potential opportunities it offers. If we deliver on our wider savings as a service strategy it will be brilliant for savers everywhere, reinforcing my decision to increase my holding to 29.9%," the Chair added.
Gocompare posted its 2018 results at the end of February, with pretax profit up to GBP33.8 million from GBP30.7 million the year before as revenue inched up 2.3% to GBP152.6 million.
Alongside its results, the company also unveiled a plan to invest around GBP10 million in marketing its weflip service, which automatically moves customers onto cheaper energy tariffs. Gocompare will fund this investment with cash flow from its regular price comparison business, and said it is targeting "the potential for exceptional growth in the medium term".
