imutual.co.uk

quidco have just announced their financial results to 31/7/2011, which may be of interest to imutual shareholders as it gives an idea of the market potential for our company

I posted details of earlier results for quidco and tcb here. The latest quidco accounts are as follows (figures in brackets are for the previous year):

Turnover £43,471,693 (£32,077,869)
Cost of sales £37,956,412 (£28,929,081)
Gross profit £5,515,281 (£3,148,788)
Admin expenses £3,682,468 (£2,216,402)
Operating profit £1,832,813 (£932,386)
Interest £22,223 (£11,027)
Pre-tax profit £1,855,036 (£943,413)

£43.5m is an impressive level of turnover. It's also noticeable that there is a £5.5m difference between what revenue they receive and what they payout to members (assuming that "cost of sales" purely relates to cashback paid out). And operating costs (incl. salaries) have increased to £3.68m.

So when people draw comparisons between them and imutual, I would point out that our day-to-day running costs last year were around £20k

I make no criticism of companies when I post results; I think they are to be congratulated on a great set of results for their shareholders. I just think it illustrates that there is a gap in the market for a money-saving company where the customers and shareholders are one and the same and therefore have the same interests

They also give details of the Highest Paid Director; increasing from £94,701 to £160,688 (I don't think this includes any dividends). Interesting to note that Michael Murphy (ex-Friends Reunited, who joined the Quidco board a while ago) has resigned as a director.

It also states that there are share options in place, which can be exercised once the company is either sold or listed (on the stock market) - which is acknowledged as its long term goal.

I'm guessin a lot of their profits are from their £5 'Admin?' charge
Maybe CBL can answer how People can pay £5 a year when other sites don't have any charges
Perhaps the belief that most cashbac users are after 'Maximun Cashbac' is a false assumption

kevinchess1 wrote:I'm guessin a lot of their profits are from their £5 'Admin?' charge
Maybe CBL can answer how People can pay £5 a year when other sites don't have any charges
Perhaps the belief that most cashbac users are after 'Maximun Cashbac' is a false assumption

Of course a lot of their increase will be from their Television advertising campaign.

A lot of people may pay £5 annually because they do not know about other C/B sites that make no charge esp if they come in through the TV route and have not done any homework.

A case to be made for advertising? I think there are points for and against. Biggest minus is the cost and targeting it effectively.

I joined Quidco and Rpoints on the same day. I was member number fifty-something at Quidco and it is amazing to see how much they have grown in size since then. Respect to them for that, but back in 2005, Rpoints had something that Quidco lacked which is why I became a hardcore Rpointer.

I join Q early on aswell
Tobe honest i didn't thinkl a 100% cashbac site even with a £5 once only fee
Would take off
Show what i know
On a similar/different topic is then when Rpoints started to decline

kevinchess1 wrote:
Maybe CBL can answer how People can pay £5 a year when other sites don't have any charges

5.00 fee is worth it when Quidco have offers which no other site can get

e.g http://www.quidco.com/nationwide-buildi ... ebonds/?ac - It was 35.00 at one stage for 1.00 deposit which was paid.


http://www.quidco.com/green-flag-rapid-breakdown-cover/ -no other site could get 2.00 for a quote earlier in year which was paid + other no spend offers not on other sites which wipe out 5.00 fee.

http://www.quidco.com/butlers-bingo/ - Potential 5.00 profit that Richard wouldnt allow I-Mutual members to have

Anyone who did X-Bingo via I-Mutual paid the site much more than a 5.00 fee


I hope I have cleared things up

Haven't really used Quidco for a while, except for the app which gives me 25p for going into Phones4U, Carphone Warehouse etc while I'm in town. Couldn't make BHS or B&Q work, though, suppose it's more difficult to know where to stand in a big store so you get your money!

Impressive set of results. They really have grown into a monster. I see their long term aim is what we have started as our core aim. To one day be a listed company on the stock market.

cashbacklover wrote:I hope I have cleared things up

Indeed. No thread like this would be complete without a post from cbl being negative about imutual. Reiterating points that have been made many times before. Of course quidco can get deals that we can't at present. They have over 1m members versus our 3,000. They have £43.5m turnover versus our £40k

The question relevant here is: as and when imutual achieves a similar size to what quidco is now, would its members tolerate a difference of £5.5m between what it receives from merchants and what it pays out to members? And if the answer is "no", then that's an argument for supporting our imutual model and helping it to achieve its objectives. And that requires being positive, not negative