Interim Results

RNS Number : 5489A
YouGov PLC
02 April 2012
 



 

 

2 April 2012

YouGov plc

Interim results for the six months ended 31 January 2012

Outperforming the market in all geographies

Summary of Results

 Six months to 31 January 2012

£m

 Six months to 31 January 2011

£m

Full Year to

31 July 2011

£m


29.9

27.0

56.1

2.0

2.2

5.3


6.8%

8.0%

9.4%


 

Key Financials

·    Organic revenue growth of 12% (11% reported)

·    Investment of £0.7m in teams to support new products and geographical expansion

·    Adjusted profit before tax of £2.2m (2011: £2.3m)

·    Adjusted earnings per share of 1.8p (2011: 2.1p)  

·    Reported loss before tax of £0.3m (2011: £0.3m)

·    Strong cash conversion of 160% of operating profit

·    Balance sheet remains strong - net cash of £10.3m (2011: £10.9m)

·   

 

Operational highlights

·    Group - maintained revenue growth well ahead of the overall research market

·    USA - continued strong revenue growth of 35% (15% organic)

·   

·   

·   

·   

·    total revenue from data products up over 50%

·   

 

1Adjusted operating profit is defined as Group operating profit before amortisation of intangibles and exceptional items. In the period ending 31 January 2012 amortisation was £2.0m, of which £0.6m related to the Group's internally generated assets, and exceptional items were £0.1m.

 

Commenting on the results, Stephan Shakespeare, Chief Executive, said:

 

"YouGov continues to take market share with underlying growth in all of our markets. This strong performance reflects the strength of our core offering as well as our international expansion, notably in the US. The return to top line growth in Germany is also encouraging as the new management team transitions the business model to fit the Group strategy.

We have made targeted investment this year in two important new products, both being launched this month, which significantly advance our syndicated data offering and drive forward our strategic emphasis on real-time flow of business intelligence.

These products are SoMA, a social media analysis tool which solves the problem of how to get robust and meaningful data out of Twitter and Facebook 'noise'; and a new reporting tool which brings together all of the existing (and some new) YouGov data streams in a single dashboard for senior executives.

Building on a good first half we continue to make progress across the Group. YouGov has a strong portfolio of research tools and this, combined with our strong balance sheet, gives us confidence in the future. Trading across the Group remains in line with our expectations and the Board remains confident of the full year outcome."

 

Enquiries:

 

YouGov plc


Stephan Shakespeare / Alan Newman

020 7012 6000

Financial Dynamics


Charles Palmer / Tracey Bowditch

020 7831 3113

Numis


James Serjeant / Nick Westlake

020 7260 1000

 

 

YOUGOV PLC

CEO's REPORT

 

For the six months ended 31 January 2012

 

Introduction

We are pleased to report on another period in which YouGov has maintained its growth above that of the overall research market and continued to expand its range of products and services. Our Group generated revenue of £29.9 million in the six months to 31 January 2012 which was 11% higher than in the comparable period last year (12% in organic terms). There has been a good performance across all of our units with USA, UK and the Nordics achieving significant overall revenue growth. In the Middle East, this period has marked the final stage in the transition to a business that fits totally with YouGov's core model following the ending, as expected, of the Iraq contract. It is also pleasing to report that Germany has now re-established underlying revenue growth under its new management. 

As previously indicated, we are committed to investing in the development of new products and expansion of YouGov's geographical coverage organically to support further growth. In the period, we have made additional investments in line with these objectives. Since most of this investment has been in staff resources, this has, as expected, impacted on overall profitability in the short term. The investment areas include:

·      SixthSense - the reports business that started in the UK in mid-2010

·      France - new operation which started in October 2011

·      Investment sector research products - including the "HEAT" economic confidence tracker

·      New Social Media Analysis and Dashboard-based reporting products - due to be released to the market in April 2012

Custom research commissioned by and for individual clients, remains the core part of YouGov's business accounting for over 70% of our revenue and growing by 10% in this period. In addition to serving the needs of our clients through our core capabilities of data, accuracy, speed and online reporting, the solutions developed by our sector based specialists also help to stimulate our product innovation. As previously explained, YouGov's strategy is to grow significantly the proportion of revenue from business intelligence products as well as our highly scalable Omnibus services. Our aim is to describe opinions and behaviours in streams of data interpreted through advanced analytics and made available to the market in the form of syndicated research products and reports, delivered where possible through online reporting dashboards. Our total revenue from data products has continued to grow strongly, increasing by over 50% compared to the six months to 31 January 2011.  BrandIndex, our pioneering brand intelligence service, grew by 47% and our new reports business, SixthSense, which is currently only in the UK, doubled its revenue. Omnibus revenue rose by 20% due mainly to its continuing international expansion.

In line with our strategy, our data product development is currently centred on three areas: BrandIndex, Social Media and a new executive dashboard for a variety of YouGov data.

BrandIndex already provides daily updates for clients on what the world thinks of their brands and is being enhanced further to expand the range of metrics ("the Market View") and enable clients to dive more deeply into category-specific purchasing intentions ("Category View").  

The explosive rise of social media and networks has itself become a trending topic that concerns most organisations or businesses interested in public opinion. YouGov has been working on two problems not successfully addressed by currently available social media measuring tools: how to obtain robust and actionable data with which to assess significance of the "noise"; and how to effectively include Facebook (not just Twitter). YouGov's new tool, Social Media Analysis or "SoMA", offers a better solution, leveraging the data we already draw from our panel and combining it with broader feeds.

The YouGov dashboard is a new reporting tool which brings together all of the data streams that YouGov provides, making it easier for senior executives not only to gain an overall real-time picture of the company environment at brand, sector and macro levels, but also to link it effectively to quick-delivery, in-depth custom market research.

Financial Performance

Total Group revenue in the period rose by 11% to £29.9m from £27.0m in the six months to 31 January 2011. The UK unit's revenue grew by 21%, USA by 15% organically (and in total by 35% including Definitive Insights) and Nordic by 13%. Germany also returned to organic growth with a 9% revenue increase (excluding discontinued businesses). Middle East's locally generated locally generated revenue increased by 26% although total revenue was down by 4% due to the ending of the Iraq contract in December 2011, as previously anticipated.

Gross margins remained stable at 75% in line with the prior half year.

Group operating costs, excluding amortisation and exceptional items, of £20.5m were 12% higher in this half year than the comparative period last year. This included the investment of £0.7m in new product and geographical expansion as well as in staff needed to service growth in existing business areas. At 31 January 2012, Group staff numbers totalled 487 (full time equivalents) compared to 476 in July 2011 and 449 in January 2011.

Total Group adjusted operating profit, before amortisation and exceptional items, fell by 6% to £2.0m compared to £2.2m in the six months ended 31 January 2011. Amortisation charges for intangible assets totalled £2.0m in the period of which £1.4m related to acquired assets and £0.6m to the Group's internally generated assets. The exceptional cost of £0.1m (2011: £0.5m) included the cost of closing the Group's Iraqi operations offset by credits in respect of acquisitions in the year ended 31 July 2011.

The Group's net financial costs (including imputed interest on deferred consideration) remained stable at £0.1m.

The slightly lower operating profit led to the adjusted profit before tax of £2.2m being £0.1m lower than the comparable result of £2.3m. The statutory Group loss before tax was £0.3m compared to a loss of £0.3m in the six months ended 31 January 2011. Adjusted earnings per share were 1.8p compared to 2.1p in the six months to 31 January 2011.

Cash generation improved with cash generated from operations (before paying interest and tax) of £3.3m, £2.2m higher than in the six months to 31 January 2011. This represents operational cash conversion of 160% of adjusted operating profit (2011:51%).  The higher conversion rate reflects the reduction of £0.8m in net working capital. The Group's debtor days of 62 as at 31 January 2012 were significantly lower than at 31 January 2011 (76 days).  

Net cash has reduced to £10.3m compared to £10.9m as at 31 January 2011. We invested £1.2m in the continuing development of our technology platform (£1.0m) and of our panel (£0.2m) and £0.3m in tangible assets. There was no cash outflow in connection with acquisitions or investments in this half year.



 

 

Analysis of Adjusted Operating Profit and Earnings per Share

Six months to

Six months to

Full Year to



31 Jan 2012

31 Jan 2011*

31 July 2011


£'000

£'000

£'000

Adjusted group operating profit before amortisation of intangibles & exceptional costs

2,033

2,158

5,269

Share based payments

245

149

337

Imputed interest1

105

17

202

Net finance (expense)/income

(129)

(60)

58

Share of post-tax loss in joint venture

(59)

-

(32)

Adjusted profit before tax2

2,195

2,264

5,834

Basic earnings/(loss) per share

0.0

0.0

0.3

Diluted earnings/(loss) per share

0.0

0.0

0.3

Adjusted  earnings per share3

1.8

2.1

4.7

 

* Restated.

1Imputed interest relates to the unwinding of discounting in respect of deferred consideration for acquisitions.

2Adjusted profit before tax is defined as Group profit before tax after adding back amortisation of intangibles, share based payments, imputed interest, exceptional items and one-off costs associated with the acquisition of new entities.

3 Adjusted earnings per share is calculated based on the post-tax result derived from the adjusted profit before tax and the fully diluted number of shares. 

Dividend policy

After careful consideration of the Group's expected performance and cash generation capabilities and of the resources required for future growth, the Board believes that it is now appropriate to introduce a progressive dividend policy.  It expects to be able to announce the commencement of dividend payments following the Group's full year results.  Further details will be announced with the full year results.

Current trading and outlook

YouGov has once again delivered good organic growth in the first half of this financial year across the whole Group. This performance reflects the benefits of the investments made in developing our range of products and services and in expanding our business geographically, notably in the USA.

Building on this first half performance, we continue to make progress across the Group. YouGov has a strong portfolio of research products and services already performing well in the market and further innovations about to be launched. This, combined with our strong balance sheet, gives us confidence in the future. Trading across the Group remains in line with our expectations and the Board remains confident of the full year outcome.

 

Review of operations

UK

Six months to

31 January 2012

£m

Six months to

31 January 2011

£m

 

% Change

 

7.7

6.4

21%

1.5

1.3

16%

19.4

20.3


 

The UK business again delivered strong growth both from custom research and data products with revenue 21% higher than in the six months ended 31 January 2011. Custom research grew by 20% due largely to expansion in its international work with clients, such as the Bill and Melinda Gates Foundation, attracted by YouGov's reputation for accurate social and political research as well as YouGovStone's ability to access opinion-formers. The UK economic climate has led to some budget tightening in the period especially in the retail sector. As a result, revenue growth of 5% from our UK custom clients was lower than the comparable period although it still matched the overall research market. We continued to expand our range of syndicated trackers which measure the adoption of new technologies with a new Smart TV tracker being launched in April 2012. Within the data products area, continued investment in the SixthSense reports business has helped to double its revenue and it now offers a range of 150 titles covering 500 topic areas in the Finance, Technology, Food & Drink, Leisure, Retail and Automotive sectors to over 350 clients. Omnibus and BrandIndex both achieved growth of 15% with BrandIndex gaining new clients such as Superdrug and Peugeot and now used by over 30 companies in the UK.

USA

Six months to

31 January 2012

£m

Six months to

31 January 2011

£m

 

% Change

 

% Organic Change *

9.6

7.1

35%

15%

1.0

1.0

2%

6%

10.2

13.6



* Organic change excludes the effect of the acquisition of Definitive Insights in the prior year.

Our US business, which is our largest in revenue terms, grew organically by 15% and by 35% overall including Definitive Insights (acquired in April 2011) which contributed revenue of £1.4m in the period. Harrison maintained its strong performance since becoming part of the Group in August 2010, with revenue growth of 15%. It has successfully exceeded its second earn-out threshold (based on EBITDA for the 12 months to December 2011). Our three US acquisitions since 2009 have also helped to achieve the objective of increasing YouGov's business with major corporate clients in the US (such as Bloomberg, Coca Cola, Google, Microsoft and Panasonic) with the technology sector in particular becoming one of the largest revenue generators for our US business, both in the custom and data products areas. Definitive Insight's EBITDA in the 12 months ended 31 January 2012 was lower than previously anticipated at 31 July 2011. However, this will have little economic impact on the Group as the total purchase price payable is largely geared to Definitive Insight's performance in the two years ended 31 January 2013. The estimate for accounting purposes of the total purchase price payable is £1.5m as at 31 January 2012 compared to £3.2m as at 31 July 2011.

BrandIndex in the US had another very strong half with its revenue doubling compared to the 6 months ended 31 January 2011 reflecting both the sales made in 2010/11 as well as new business in this half from clients such as Subway and Pandora Radio.

Germany

Six months to

31 January 2012

£m

Six months to

31 January 2011

£m

 

% Change

 

 

Organic Change *

5.0

6.4

(21%)

9%

0.1

0.2

(61%)

£0.2m

1.2

2.4



Organic change excludes the revenue from businesses which were disposed of or discontinued during the year ended 31 July 2011.

 

Good progress has been made under the new CEO in changing the German operating model into one which fits with YouGov's strategy and is capable of delivering adequate returns. It is pleasing to report that the overall business has returned to growth with a like-for-like revenue increase of 9% (excluding discontinued businesses). Online products (Omnibus and BrandIndex) once again recorded significant gains with a 40% revenue increase. Within custom research, financial services, a traditional area of strength, achieved 14% revenue growth and employee research, 20%. Challenges remain, however, within the consumer and B2B area whose projects are still largely offline. Significant clients in the period included Deutsche Bahn, Ergo (a leading insurance company) and a number of regional savings and mutual banks (including those in Hamburg and Bavaria).  

Restructuring of operations and research teams across the business has led to a reduction of 29 in the headcount at 31 January 2012, compared to 31 January 2011. The recent reductions will yield savings of some £0.5m in a full year.

Nordic

Six months to

31 January 2012

£m

Six months to

31 January 2011

£m

 

% Change

 

4.4

3.9

13%

0.3

0.1

72%

5.7

3.8


 

Our Nordic business has maintained its recent momentum with a revenue increase of 13% compared to the six months ended 31 January 2011. This reflected the continued strengthening of YouGov's brand profile through regional media exposure and other marketing activities.  It was also helped by a focus on growing repeat business from existing clients and on sales of syndicated data products and reports. The main sectors and clients served in the region include media agencies (with tailored offerings for clients such as Carat and OMD), financial services (Danske Bank) and food and drink (Carlsberg and Nordic Sugar).  The syndicated products include the Nordic Food and Health Survey as well as BrandIndex which gained 8 new clients in the period.



 

Middle East

Six months to

31 January 2012

£m

Six months to

31 January 2011

£m

 

% Change

 

3.5

3.7

(4%)

0.9

0.8

2%

24.2

22.7


 

Our Middle East business has seen a small overall decline in revenue as the long-term contract in Iraq came to an end as expected, in December 2011. However, the locally generated business continued to grow strongly and its revenue increase of 26% almost offset the reduction from Iraq so that local revenue accounted for 70% of the total. Adjusted operating profit also increased by £0.1m,  reflecting the success of the management team in exploiting the strength and quality of YouGov's Middle East panel which covers 21 countries in the region as well as our expertise and skills in custom research tailored to the region's local requirements and characteristics. Revenue from online data products and services (including Omnibus and BrandIndex) doubled in the period compared to the six months ended 31 January 2011 while custom research grew by 17%. Major clients in the period include Pepsico, Riyad Bank and Pfizer as well as authorities responsible for economic development and tourism in Dubai and Saudi Arabia.

Panel development

We continue to invest in our online panels to increase our research capabilities, both in new geographies and specialist panels. The total panellist numbers (defined as the number of panel registrations) have increased to 3,115,000 as at 31 January 2012, an increase of 9% compared to 31 July 2011 and 18% from 31 January 2011. The online panel sizes in each hub were:

Region

Panel Size at 31 Jan 2012

Panel Size at 31 Jan 2011

UK

426,000

377,000

USA

1,835,000

1,772,000

Middle East

410,000

268,000

Nordic

187,000

143,000

Germany

195,000

89,000

France

62,000

-

Total Group

3,115,000

2,649,000

 

2 April 2012

 

YOUGOV PLC

STATEMENT OF DIRECTORS' RESPONSIBILITES

 

For the six months ended 31 January 2012

·      an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements , and a description of the principal risks and uncertainties for the remaining six months of the financial year; and 

·      material related-party transactions in the first six months of the financial year and any material changes in the related party transactions described in the last Annual Report.


The directors of YouGov plc are listed in the YouGov plc Annual Report for the year ended 31 July 2011.

By order of the Board:

 

 

 

Stephan Shakespeare
Chief Executive Officer

 

 

Alan Newman
Chief Financial Officer

 

2 April 2012

 

YOUGOV PLC

CONSOLIDATED INCOME STATEMENT

 

For the six months ended 31 January 2012

 


Unaudited

Unaudited *

Audited



6 months to

6 months to

Year ended



31 January

31 January

31 July



2012

2011

2011


Note

£'000

£'000

£'000






Revenue

4

29,853

26,989

56,142

Cost of sales


(7,363)

(6,570)

(13,918)

Gross profit

4

22,490

20,419

42,224

Operating expenses


(20,457)

(18,261)

(36,955)

Adjusted operating profit before amortisation of intangible assets and exceptional costs

4

2,033

2,158

5,269

Amortisation of intangible assets


(2,013)

(1,852)

(3,755)

Exceptional items

5

(107)

(530)

(1,129)

Operating (loss)/profit


(87)

(224)

385






Finance income


43

195

277

Finance costs


(172)

(255)

(219)

Share of post-tax loss in joint venture


(59)

-

(32)

(Loss)/Profit before taxation


(275)

(284)

411

Tax credit/(charge)

7

255

339

(8)

(Loss)/Profit after taxation


(20)

55

403






Attributable to:





Equity holders of the parent company


(44)

(27)

286

Non-controlling interests


24

82

117



(20)

55

403

Earnings per share





Basic (loss)/earnings per share attributable to equity holders of the company

 

8

 

(0.0)p

 

(0.0)p

 

0.3p

Diluted (loss)/earnings per share attributable to equity holders of the company

 

8

 

(0.0)p

 

(0.0)p

 

0.3p






* The comparative exceptional item charge for the period ended 31 January 2011 has been restated to reflect the £700,000 of Goodwill apportioned to the disposal of Great Place to Work Germany in the 2011 full year financial statements.

 

 

YOUGOV PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

For the six months ended 31 January 2012

 

 

Unaudited

Unaudited *

Audited

6 months to

6 months to

Year ended

31 January

31 January

31 July

2012

2011

2011


£'000

£'000

£'000





(Loss)/Profit for the period

(20)

55

403

Other comprehensive (loss)/income:




Currency translation differences

(234)

(984)

(1,237)

Purchase of non-controlling interest in subsidiary

-

1,947

1,691

Other comprehensive (loss)/income for the year net of tax

(234)

963

454

(254)

1,018

857





Attributable to:




Equity holders of the parent company

(274)

1,136

940

Non-controlling interests

20

(118)

(83)

Total comprehensive income for the period

(254)

1,018

857

 

* The comparative exceptional item charge for the period ended 31 January 2011 has been restated to reflect the £700,000 of Goodwill apportioned to the disposal of Great Place to Work Germany in the 2011 full year financial statements.

 


 

YOUGOV PLC

consolidated balance sheet

 

As at 31 January 2012

 

 


Unaudited

Unaudited *

Audited

31 January 2012

31 January 2011

31 July 2011

Note

£'000

£'000

£'000





9

37,048

36,134

37,795

9

9,721

11,376

11,427

9

2,325

2,403

2,338


409

500

468


2,499

2,371

1,939


52,002

52,784

53,697






15,724

19,879

16,933


-

64

-


197

 

-

-


10,333

10,862

9,400


26,254

30,805

26,333






78,256

83,589

80,300














10,962

14,869

11,602


1,017

2,279

1,437


29

354

487


2,812

2,154

2,838


14,820

19,656

16,364






11,434

11,149

9,969










1,971

669

1,605


2,244

3,908

2,826


3,336

3,615

3,611


7,551

8,192

8,042


22,371

27,848

24,406


55,885

55,741

55,894


 


Unaudited

Unaudited *

Audited


31 January 2012

31 January 2011

31 July 2010

Note

£'000

£'000

£'000









10

195

194

195


30,947

30,822

30,947


9,239

9,239

9,239


8,530

9,013

8,760


6,859

6,413

6,658


55,770

55,681

55,799


115

60

95


55,885

55,741

55,894

 

* Provisions and retained earnings as at 31 January 2011 have been adjusted to reflect a put option held by Carole Stone as disclosed in the financial statements for the year ended 31 July 2011.

 

The accompanying accounting policies and notes form an integral part of this financial information.

 

 

 

Alan Newman

Chief Financial Officer

2 April 2012

 

YOUGOV PLC

consolidated statement of changes in equity

 

For the six months ended 31 January 2012

 

Attributable to equity holders of the company





Share


Foreign



Non



Share

Premium

Merger

Exchange

Retained


Controlling

Total


Capital

Account

Reserve

Reserve

Earnings

Total

Interest

Equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 July 2010

194

30,822

9,239

9,797

5,151

55,203

3,999

59,202

Comprehensive Income









Profit for the period

-

-

-

-

(27)

(27)

82

55

Other comprehensive income









Purchase of non-controlling interests

-

-

-

-

1,947

1,947

-

1,947

Currency translation differences

-

-

-

(784)

-

(784)

(200)

(984)

Total comprehensive income

-

-

-

(784)

1,920

1,136

(118)

1,018

Transactions with owners









Purchase of non-controlling interests

-

-

-

-

-

-

(3,821)

(3,821)

Share based payments

-

-

-

-

149

149

-

149

Purchase of treasury shares

-

-

-

-

(807)

(807)

-

(807)

Balance at 31 January 2011 (unaudited)

194

30,822

9,239

9,013

6,413

55,681

60

55,741

Comprehensive Income









Profit for the period

-

-

-

-

313

313

35

348

Other comprehensive income









Purchase of non-controlling interests

-

-

-

-

(256)

(256)

-

(256)

Currency translation differences

-

-

-

(253)

-

(253)

-

(253)

Total comprehensive income

-

-

-

(253)

57

(196)

35

(161)

Transactions with owners









Issue of share capital

1

125

-

-

-

126

-

126

Share based payments

-

-

-

-

188

188

-

188

Balance at 31 July 2011

195

30,947

9,239

8,760

6,658

55,799

95

55,894

Comprehensive Income









Loss for the period

-

-

-

-

(44)

(44)

24

(20)

Other comprehensive income









Currency translation differences

-

-

-

(230)

-

(230)

(4)

(234)

Total comprehensive income

-

-

-

(230)

(44)

(274)

20

(254)

Transactions with owners









Share based payments

-

-

-

-

245

245

-

245

Balance at 31 January 2012 (unaudited)

195

30,947

9,239

8,530

6,859

55,770

115

55,885

 

 

YOUGOV PLC

consolidated cash flow statement

 

For the six months ended 31 January 2012

 

Unaudited

Unaudited *

Audited

6 months to

6 months to

Year ended


31 January

31 January

31 July


2012

2011

2011


£'000

£'000

£'000

Operating (loss)/profit

(87)

(224)

385

Adjustments for:




   Amortisation

2,013

1,852

3,755

   Depreciation

362

327

745

   (Profit)/Loss on disposal of subsidiary

-

200

159

   Loss on disposal of other fixed assets

-

-

74

   Foreign exchange loss

-

138

-

   Other non-cash operating profit items

169

149

337

 (Decrease)/Increase in provisions

(66)

130

(599)

 Decrease/(Increase) in trade and other

1,518

(2,898)

(1,855)

 (Decrease)/Increase in trade and other

(643)

1,417

2,626

Cash generated from operations

3,266

1,091

5,627

Interest paid

(67)

(255)

(17)

Income taxes paid

(955)

(65)

(639)

Net cash generated from operating activities

2,244

771

4,971

Cash flow from investing activities




Acquisition of subsidiaries (net of cash acquired)

-

(2,415)

(2,973)

Acquisition of associates

-

(500)

(500)

Purchase of non-controlling interests

-

(1,870)

(2,570)

Settlement of deferred considerations

-

-

(2,075)

Proceeds received from sale of subsidiary

-

279

486

1

-

9

Purchase of property, plant and equipment

(304)

(154)

(574)

Purchase of intangible assets

(1,180)

(878)

(2,107)

Interest received

43

195

133

Net cash used in investing activities

(1,440)

(5,343)

(10,171)

Cash flows from financing activities




Purchase of own shares

-

-

(807)

Loan repayments

-

-

(4)

Net cash used in financing activities

-

-

(811)

Net increase/(decrease) in cash and cash equivalents

804

(4,572)

(6,011)

Cash and cash equivalents at beginning of period

9,400

15,634

15,634

Exchange gain/(loss) on cash and cash equivalents

129

(200)

(223)

Cash and cash equivalents at end of period

10,333

10,862

9,400

* Restated




 

 

YOUGOV plc

notes to the consolidated interim financial statements

 

For the six months ended 31 January 2012

 

 

1          GENERAL INFORMATION

 

YouGov plc and subsidiaries' ('the Group') principal activity is the provision of market research.  The market research industry is subject to seasonal fluctuations, with peak demand in the second half of the group's financial year

www.yougov.com

2          FORWARD LOOKING STATEMENTS

 

3          BASIS OF PREPARATION

 

This consolidated interim report for the six months ended 31 January 2012 has been prepared in accordance with IAS 34 'Interim financial reporting' as adopted by the European Union. The consolidated interim report should be read in conjunction with the annual financial statements for the year ended 31 July 2011, which has been prepared in accordance with IFRS's as adopted by the European Union.

 

The financial information contained in the consolidated interim report does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the year ended 31 July 2011 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498 (3) of the Companies Act 2006.

 

Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 July 2011.

 

Accounting estimates and judgements

The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of income, expense, assets and liabilities. The significant estimates and judgements made by management were consistent with those applied to the consolidated financial statements for the year ended 31 July 2011.

Risks and uncertainties

The principal strategic level risks and uncertainties affecting the group remain those set out in the 2011 Annual Report.


The chairman's statement and chief executive's review in this interim report include comments on
the outlook for the remaining six months of the financial year.

 

4        SEGMENTAL ANALYSIS

 

Management has determined the operating segments based on the reports reviewed by the board of directors (which is the "chief operating decision maker").  The board of directors review information based on geographic lines - UK, Middle East and North Africa, Germany, Nordic and North America. These divisions are the basis on which the group reports its segmental information. The group only undertakes one class of business, that of market research.










Middle








East and




Consolidation




North



North

and



UK

Africa

Germany

Nordic

America

Unallocated

Consolidated

For the six months

£'000

£'000

£'000

£'000

£'000

£'000

£'000

to 31 January 2012 Unaudited








Revenue








External sales

7,608

3,451

4,926

4,298

9,558

12

29,853

Inter-segment sales

81

85

119

72

30

(387)

-

Total revenue

7,689

3,536

5,045

4,370

9,588

(375)

29,853









 

Inter-segment sales are priced on an arms-length basis that would be available to unrelated third parties.









Segment result








Gross profit

5,573

2,505

3,749

3,481

7,072

110

22,490

Adjusted operating profit/(loss)

1,495

856

60

251

978

(1,607)

2,033

Amortisation of intangibles

(123)

(63)

(77)

(274)

(831)

(645)

(2,013)

Exceptional items

(10)

(274)

6

-

203

(32)

(107)

Finance income







43

Finance costs







(172)

Share of post-tax loss in joint venture







(59)

Group loss before tax







(275)

Tax credit







255

Group loss after tax







(20)









Other segment information








Depreciation

56

65

64

20

67

90

362

Share based payments

229

-

-

-

16

-

245

Assets








Segment assets

21,556

15,298

14,746

12,498

27,083

(13,334)

77,847

Investments in joint ventures







409

Total assets







78,256


 

 

 

 










Middle








East and




Consolidation




North



North

and



UK

Africa

Germany

Nordic

America

Unallocated

Consolidated

For the six months

£'000

£'000

£'000

£'000

£'000

£'000

£'000

to 31 January 2011 Unaudited








Revenue








External sales

6,197

3,667

6,305

3,861

6,959

-

26,989

Inter-segment sales

179

27

45

10

121

(382)

-

Total revenue

6,376

3,694

6,350

3,871

7,080

(382)

26,989









 

Inter-segment sales are priced on an arms-length basis that would be available to unrelated third parties.









Segment result








Gross profit/(loss(

4,724

2,426

4,875

2,966

5,435

(7)

20,419

Adjusted operating profit/(loss)

1,294

840

152

146

961

(1,235)

2,158

Amortisation of intangibles

(102)

(68)

(63)

(52)

(317)

(1,250)

(1,852)

Exceptional items

-

-

(200)

-

(50)

(280)

(530)

Finance income







195

Finance costs







(255)

Share of post- tax profit/ (loss) in joint venture







-

Group loss before tax







(284)

Tax credit







339

Group profit after tax







55









Other segment information








Depreciation

55

87

70

17

51

47

327

Share based payments

145

-

-

-

4

-

149

Assets








Segment assets

18,801

18,792

5,391

5,228

16,559

18,318

83,089

Investments in joint ventures







500

Total assets







83,589


5          EXCEPTIONAL ITEMS

Unaudited

Unaudited *

Audited

6 months to

6 months to

Year Ended


31 January

31 January

31 July


2012

2011

2011


£'000

£'000

£'000





Acquisition (credit)/costs

(45)

200

544

Loss on sale of Great Place to Work Germany

-

200

200

Investment write off

-

130

168

Adjustment to Harrison Group's opening balance sheet

(126)

-

-

Provision for YouGov Stone put option

-

-

(121)

Restructuring costs

278

-

338

Total exceptional costs

107

530

1,129

 

* The comparative exceptional item charge for the period ended 31 January 2011 has been restated to reflect the £700,000 of Goodwill apportioned to the disposal of Great Place to Work Germany in the 2011 full year financial statements.

 

The credit to acquisition costs in the period relates to the reduction in estimated contingent consideration payable in respect of the Definitive Insights acquisition, part of which under IFRS3 is deemed to be staff compensation cost.  Acquisition costs in the prior year relate to the acquisition of the Harrison Group and Definitive Insights.

 

The investments written off in the prior year relate to a number of joint ventures that are no longer trading or in which the group no longer holds an equity interest.

 

The adjustment to Harrison Group's opening balance sheet relates to a reversal of pre-acquisition accruals.

 

Restructuring costs in the period primarily related to the closing of the company's operations in Iraq.  Restructuring costs in the prior year related to the termination of operations of certain divisions within the German business.   

 

 

6          DIVIDEND

 

No dividend was paid or proposed during the period (2011: £nil).

 

 

 7         TAXATION

 

Unaudited

Unaudited

Audited

6 months to

6 months to

Year Ended


31 January

3 January

31 July


2012

2011

2011


£'000

£'000

£'000

Current taxation charge

300

100

239

Deferred taxation credit

(555)

(439)

(231)

Total  income statement tax (credit)/charge

(255)

(339)

8

 

 

8          (LOSS)/EARNINGS PER SHARE

 

Unaudited

Unaudited

Audited

6 months to

6 months to

Year to


31 January

31 January

31 July

Number of shares

2012

2011

2011

Weighted average number of shares during the period ('000 shares):




-       Basic

95,141

96,740

95,114

-       Dilutive effect of options

5,872

2,701

3,319

-       Diluted

101,013

99,441

98,433

Basic (loss)/earnings per share (in pence)

(0.0)

(0.0)

0.3

Adjusted basic earnings per share (in pence)

1.8

1.4

4.7

Diluted (loss)/earnings per share (in pence)

(0.0)

(0.0)

0.3

Adjusted diluted earnings per share (in pence)

1.7

1.4

4.5





The adjustments have the following effect:








Basic (loss)/earnings per share (in pence)

(0.0)

(0.0)

0.3

Amortisation of intangible assets

2.1

1.9

4.0

Share based payments

0.3

0.2

0.3

Imputed interest

0.1

-

0.2

Exceptional items and impairment

0.1

0.5

1.2

Tax effect of the above adjustments

(0.8)

(0.5)

(1.3)

Adjusted basic earnings per share (in pence)

1.8

2.1

4.7









Diluted (loss)/earnings per share (in pence)

(0.0)

(0.0)

0.3

Amortisation of intangible assets

2.0

1.9

3.8

Share based payments

0.3

0.2

0.3

Imputed interest

0.1

-

0.2

Exceptional items and impairment

0.1

0.5

1.2

Tax effect of the above adjustments

(0.8)

(0.5)

(1.3)

Adjusted diluted earnings per share (in pence)

1.7

2.1

4.5

 

As the Group reported a loss for the periods the effects of dilutive share options were ignored when calculating diluted loss per share.

 

9          GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT



Carrying amount at 31 July  2010

Carrying amount at 31 January 2011

Carrying amount at 31 July 2011

Carrying amount at 31 January 2012

 

 

 

Consumer panel

Software and software develop-ment

Customer contracts and lists

Patents and trade-

marks

Order backlog

Develop-ment costs

 

 

 

Total

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Carrying amount at 31 July 2011

1,518

2,014

4,924

2,176

5

790

11,427








214

213

-

-

-

8

435

-

745

-

-

-

-

745








(757)

(244)

(201)

(184)

1

(58)

(1,443)

-

(570)

-

-

-

-

(570)

-

-

(737)

(25)

(6)

-

(768)

276

898

(507)

(250)

-

(417)

-

(113)

152

(59)

(74)

-

(11)

(105)

Carrying amount at 31 January 2012

1,138

3,208

3,420

1,643

-

312

9,721

 

10         SHARE CAPITAL



shares

£'000

At 31 January 2011

At 31 July 2011

At 31 January 2012

 

The company has only one class of share.  The par value of each share is 0.2p.  All issued shares are fully paid.

 

 

11         BUSINESS COMBINATION AND DISPOSALS

Acquiree's carrying amount before combination

Provisional fair value adjustments

Provisional Fair Value

Net assets acquired:

£'000

£'000

£'000

Net assets at completion date

12

-

12

Intangible assets




   Trademarks and patents

-

110

110

   Customer relationships

-

400

400

   Order Backlog

-

2

2

Deferred tax liability

-

(215)

(215)

Net assets

12

297

309

Goodwill arising on acquisition



769

Total consideration for acquisition



1,078

Consideration contingent on continued employment

466

Total consideration and related employee benefits

1,544



 

Total consideration and related employee benefits analysed as :


 

Cash paid

612

Contingent consideration payable

932

Total consideration and related employee benefits

1,544

 

 

12         TRANSACTIONS WITH DIRECTORS AND OTHER RELATED PARTIES

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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