Moneysupermarket.com, the price comparison website, tried to reassure investors today that it had changed its performance expectations this year despite admitting to “extremely challenging” conditions in its mortgage business.

The website said good performance in other areas, especially strong growth in credit cards and savings businesses, had offset the difficulties it faced on its mortgage and loans business.

In a trading statement issued today, in advance of results to be published next month, Simon Nixon, chief executive, said conditions in its mortgages and loans sector worsened in the second quarter to the end of June and its money division was also slowing.

”The strength of our diversified strategy is really evident in the first half,” said Mr Nixon. “The problems in the UK loan and mortgage markets are well documented and have naturally impacted our activities in that area. Nevertheless, that we expect to end the first half of the year broadly in line with our targets and with overall revenue growth in excess of 25 per cent shows the underlying strength of our diversified business model.”

Group revenues were expected to be up by 25 per cent to £100m on a year on year basis, in line with first half expectations. Analysts have forecast full year profits of about £60m.

Shares in the company fell 8.4 per cent, or 10p, to 109p in the opening hours of trading. Moneysupermarket.com has endured a tough time since flotation last summer, with shares now 30 per cent below their opening price of 170p

The website revealed signs that growth at the the company was slowing and revenues may have taken a hit in the second quarter of this year.

The travel division’s revenues were only up by 45 per cent in the half, despite having been more than 50 per cent ahead in the first quarter. Also, in its home services department, revenues had increased around 75 per cent in the half year, after being more than 100 per cent ahead in the first three months.

Times Recommends

• Calls grow for steep rate cut as services deteriorate
• Stagecoach shares fall 20% on rail warning
• UK broadcasters web TV 'limits competition'