Preliminary Results 2005

YouGov PLC
10 October 2005


10 October 2005

                                   YOUGOV PLC

          AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JULY 2005

 STRONG PERFORMANCE REFLECTS GOOD ORGANIC GROWTH AND TRENDS IN ONLINE RESEARCH
                                     MARKET

YouGov plc ('YouGov' or 'the Company') announces its preliminary results for the
                            year ended 31 July 2005.

                £'000        Year ended 31          Year ended 31       Growth
                                 July 2005              July 2004
Turnover                             2,942                  1,992           48%
Operating profit                       961                    670           43%
Profit before tax                      996                    678           47%
Basic earnings
per share                             5.8p                   4.2p           38%

Highlights

   • Performance exceeds expectations at time of float

   • Strong growth in sales and operating profits

   • Successful flotation provides capital for growth and product development

   • Strong balance sheet with net cash of £3.8m

   • Benefits of online research attracting wider and increased client base

   • Growth in online panel from 65,000 to 98,000 respondents

   • First overseas expansion - launch of YouGov Middle East and online
     panels in US

   • Outlook for online market research is strong

Commenting, Nadhim Zahawi, Joint Chief Executive Officer of YouGov said;

'The Company performed well throughout the year, exceeding our expectations.
YouGov made good progress both financially and operationally, achieving
significant growth in both turnover and profits.

'Our flotation secured new capital to support the company's growth and we have
clear expansion criteria. We intend to grow the business organically and by
acquisition expand our client base, our research services and our geographic
footprint. The online research market has good growth potential and we are well
positioned to capitalise on it.'

Enquiries:

Nadhim Zahawi, Joint Chief Executive
YouGov 020 7618 3010

Tim Spratt/Charlie Palmer
Financial Dynamics 020 7831 3113

John Llewellyn-Lloyd
Noble & Company 0207 763 2200

Preliminary Results

Introduction

In the financial year ended 31 July 2005, YouGov made good progress both
operationally and financially, achieving significant growth in both turnover and
profits. YouGov's business performance throughout the year has been ahead of our
expectation. Sales have grown almost 50% compared with the prior year.

The biggest single financial event for the company was its flotation on the
London Stock Exchange's Alternative Investment Market (AIM) on 25 April 2005.
The flotation secured £3m of new money, which will support YouGov's expansion
both organically and through acquisition.

Financial Performance

Turnover increased by 48% to £2.94m (£1.99m in 2003-04). Profits before tax rose
47% to £996,000 and basic earnings per share improved by 38% to 5.8 pence. The
business remains highly cash generative and during the year operations generated
£1.1m in cashflow.

On 31 July 2005, YouGov's fixed assets totalled £63,000 (2004: £51,000) and its
current assets £4.6m (2004: £1.5m), including £3.8m in cash or on deposit.
Current liabilities stood at £870,000 (2004: £603,000). Overall net assets stood
at £3.7m (2004: £930,000).

The directors are not recommending the payment of a dividend, which is
consistent with statements made at the time of flotation and reflects the age of
the company and the opportunities for further development. All dividends charged
in the profit and loss account were paid prior to the float.

Operational highlights

Key projects during the year

For the May 2005 general election, the prestigious academic British Election
Study (BES) had two components, face-to-face and online research. YouGov won the
contract for the online research and provided daily tracking surveys throughout
the campaign, as well as major studies of political attitudes before the
campaign started and after election day. YouGov conducted more surveys for the
media than any other company. Its final election-day survey reported each
party's share accurately to within one percentage point and, importantly,
YouGov's figures for both Labour and the Conservatives were also consistently
accurate to within one point in each of the nine surveys conducted during the
final 20 days of the campaign.

Although YouGov's political surveys achieved a high profile, these contributed
only a small share of the company's turnover. Overall, two-thirds of YouGov's
work in the financial year was commercial market research, while just one
quarter was opinion research (including political surveys). One-tenth of
YouGov's turnover was stakeholder research.

Working for more than 130 clients during the year, up from 100 last year,
YouGov's client base was wide and varied, reflected by four particular projects:
  
 - The ABI Pensions and Savings Index, which was launched in October 2003, is a
 quarterly barometer of the public's confidence and attitudes towards saving.
 During the year, YouGov produced quarterly quantitative research for the ABI.

 - The work for the Commission for Racial Equality (CRE) reflected YouGov's
 ability to understand sensitive issues and interpret complex and subtle data.

 - YouGov was asked by the London Borough of Lewisham to set up an online and
 branded website and proprietary panel to engage Lewisham residents in an ongoing
 consultation with the Council on issues covering satisfaction with service,
 attitudes and opinion about a range of topical issues and new Council proposals.

 - YouGov was engaged by ASDA to perform research designed to investigate
 consumer purchasing behaviour and attitudes towards in-store promotions and the
 effectiveness of pricing and promotions strategy.

Both the omnibus and bespoke research projects were core areas of performance
improvement for YouGov, with revenues increased revenues per survey.

Panel expansion

At the heart of YouGov's work is its panel of respondents - recruited to enable
YouGov to draw representative research samples. During the course of the year,
the number of panel members for whom YouGov had extensive demographic
information grew from around 65,000 to more than 98,000. The company has
devoted, and will continue to devote, substantial resources to maintaining and
expanding the panel, and to keeping the level of 'churn' - the proportion of
panel members lost through non-participation in a 12 month period - as low as
possible. In the last year, the degree of 'churn' was just 15%. In addition,
YouGov also established online panels in the United States and the Middle East.

Future development

Products

YouGov expects to launch at least one new product per year. Before the end of
2005, YouGov will be launching a new research product, BrandIndex, which will
provide daily tracking of around 1,100 consumer brands in 32 sectors across
seven different measures of brand perception. This will be the first time that
short and long-term effects on brand profile are measured and reported on a
daily basis - a response to the greater focus both on the importance of brand
equity and up-to-the-moment data. The product, which reports using an
easy-to-use online tool, is aimed at CEOs, brand managers, the research
community, fund managers and financial investors.

YouGov has been actively developing BrandIndex over the past 14 months. The
Board believes that the product has the potential to significantly change the
way companies, marketers and investors measure brand equity. Most tracking
studies currently available are conducted on a quarterly basis, sometimes
monthly and rarely on a weekly basis with none tracking perception of brands on
a daily basis.

Overseas expansion

We continue to explore opportunities in new markets, both to establish new
panels and consider new business opportunities. The Middle East is one of the
world's most exciting growth markets and YouGov believes there are good
opportunities for its online market research techniques in the region. In 2004,
at the request of HSBC Middle East, YouGov built a specialist panel of business
men and women across the GCC countries (Gulf Co-operation Council) and
established the first Middle East Business Confidence Index (MEBCI) for the
bank. On the back of the success of MEBCI YouGov established a joint venture
with a majority stake and has subsequently launched YouGov ME Fz LLC, based in
Dubai Media City, which will have the first online consumer panel in the region.

Acquisitions

Following its flotation, the company is actively looking at acquisitions of
companies with expertise in those areas which would complement and enhance
YouGov's offering. Four criteria will inform our decisions:

   • the acquisition will be earnings enhancing

   • the companies we acquire will have an expertise and track record in
     certain sectors of market research including fast-moving consumer goods
     (fmcg), healthcare and the financial sector

   • the acquisition will allow exploitation of YouGov's methodology for the
     company's existing customers and their work will be enhanced by their
     association with YouGov and

   • the acquisition will help YouGov build a full service offering and
     consultancy agency based on its core strength of online panel-based
     research.

Prospects and outlook

Total Internet research spending worldwide is expected to reach over $1.6bn
($1.1bn in the US) in 2005, of which $170 million is expected to arise in the
UK. Worldwide expenditure is scheduled to reach $4bn by 2008. Total online
research expenditure is forecast to account for around 7.5% of total market
research expenditure of £1.2 billion in 2005 in the UK. The UK is expected to
remain the largest market for online research in Europe, with anticipated growth
over the next three years of some 25% year on year.

The UK market estimates are supported by the following:

   • buyers of research envisage spending over 1/3 of their research budget
     on online research by 2006 (MRS and ESOMAR)

   • two thirds of marketing companies now conduct research online and of
     those who do not, two thirds plan to do so over the next three years
     (Research and Cambiar reports)

   • increased adoption of online research techniques by the SME sector

   • the range of both research types and sectors for which the Internet is
     used to collect data will increase

Statistics also suggest changes in the way that online research is commissioned,
as an increasing number of end-clients are investing in their own panels and
self-sufficiency in collecting, processing, analysing and reporting on data
collected online. As a full service panel company with an online business model,
there is an opportunity for YouGov to utilise its expertise in panel management
and online data collection methods to advise and work with blue chip clients who
wish to invest in their online research self-sufficiency.

The company is trading in line with the Board's expectations and has made a
sound start to its current financial year. There is a growing demand for
accurate online research and YouGov is well positioned to capitalise on this
trend. Our intention is to expand both organically and by acquisition. We will
look to grow our client base, especially bespoke customers; expand our services
and research products; extend our geographical reach; and continue to manage our
panel. The company is well placed to achieve all of these objectives.

SUMMARISED PROFIT AND LOSS ACCOUNT

For the year ended 31 July 2005

                                                            2005         2004
                                                       (Audited)    (Audited)
                                               Note        £'000        £'000
Turnover                                                   2,942        1,992

Cost of sales                                              (476)        (221)
Gross profit                                               2,466        1,771

Other operating income and charges                       (1,505)      (1,101)
Operating profit                                             961          670

Interest receivable                                           51            8
Interest payable                                            (16)            -
Profit on ordinary activities before taxation                996          678

Tax on profit on ordinary activities                       (305)        (204)
Profit on ordinary activities after taxation                 691          474

Equity dividends                                  3        (436)        (129)

Profit retained and transferred to reserves                  255          345

Basic earnings per share (p)                      2          5.8          4.2
Diluted earnings per share (p),                   2          5.5          4.0

SUMMARISED BALANCE SHEET

As at 31 July 2005

                                                           2005          2004
                                                      (Audited)     (Audited)
                                                          £'000         £'000
Fixed assets
Tangible assets                                              63            52
Other investments                                             -             1
                                                             63            53
Current assets

Debtors                                                     769           506
Cash at bank and in hand                                  3,796           977
                                                          4,565         1,483

Creditors: amounts falling due within one year            (870)         (603)
                                                          3,695           880
Total assets less current liabilities                     3,758           933

Provisions for liabilities and charges                     (11)           (3)
                                                          3,747           930

Capital and reserves
Called up share capital                                     133           113
Share premium account                                     2,913           371
Profit and loss account                                     701           446
                                                          3,747           930

SUMMARISED CASH FLOW STATEMENT

For the year ended 31 July 2005
                                                  Note        2005        2004
                                                         (Audited)   (Audited)
                                                             £'000       £'000

Net cash inflow from operating activities            4       1,149         852


Returns on investments and servicing of finance
Interest received                                               51           7
Interest paid                                                 (16)           -

Net cash inflow from returns on investments and
servicing of finance                                            35           7

Taxation                                                     (202)        (44)

Capital expenditure and financial investment
Purchase of tangible fixed assets                             (28)        (62)
Cash received for disposal of assets                             -           2
Net cash inflow from capital expenditure
and
financial investment                                          (28)        (60)

Equity dividends paid                                        (436)       (194)

Financing
Issue of shares                                              3,038          35
Cost of Issue                                                 306)           -
Payments to repurchase own share capital                     (167)           -
Repayment of loans                                           (264)           -
Net cash inflow from financing                               2,301          35

Increase in cash                                     5       2,819         596

Notes to the preliminary results for the year ended 31 July 2005

  1.        Basis of Preparation and additional information

            The preliminary results have been prepared under the historical cost 
            convention and in accordance with applicable United Kingdom 
            accounting standards.

  2.        Earnings per share

                         2005                                   2004
                          Weighted            Per                Weighted       Per 
                           average          Share                 average     Share
                            number         amount                  number    amount
            Earnings     of shares          pence    Earnings   of shares     pence
               £'000                                    £'000                     

Profit
attributable
to ordinary
shareholders     691                                      474

Basic
Earnings per
share
Earnings
attributable
to ordinary
shareholders             11,998,561          5.8               11,312,033       4.2

Dilutive
effect of
securities
Options                     661,578                               434,814

Diluted
Earnings per
share
Adjusted
earnings                 12,660,139          5.5               11,746,847       4.0

  3.        Dividends

                                                       2005              2004
                                                  (Audited)         (Audited)
                                                      £'000             £'000
Equity dividends:

'A' Ordinary shares of 1 pence                          200                 -
'B' Ordinary shares of 1 pence                           92                52
'C' Ordinary shares of 1 pence                           95                53
'D' Ordinary shares of 1 pence                           49                24

                                                        436               129

All dividends charged in the profit and loss account were paid prior to the 
Company's admission to AIM.

  4.        Net cash inflow from operating activities
                                                  
                                                       2005             2004
                                                  (Audited)        (Audited)
                                                      £'000            £'000

Operating profit                                        961              670
Depreciation                                             17               11
Impairment of intangible fixed assets                                     87
Profit on sale of tangible fixed assets                   -              (1)
Increase/ (decrease) in debtors                       (263)              135
(Increase)/ decrease in creditors                       434             (50)
Net cash inflow from operating activities             1,149              852

  5.        Reconciliation of net cash flow to movement in net cash

                                                       2005             2004
                                                  (Audited)        (Audited)
                                                      £'000            £'000

Increase in cash in the year                          2,819              596

Repayment of loans                                      264                -
Movement in net cash in the year                      3,083              596
Net cash at 1 August 2004                               713              117
Net cash at 31 July 2005                              3,796              713

  6.       Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.

The summarised balance sheet at 31 July 2005 and the summarised profit and loss
account, summarised cashflow statement and associated notes for the year then
ended have been extracted from the company's 2005 statutory financial statements
upon which the auditors opinion is unqualified and does not include any
statement under section 237 of the Companies Act 1985.

These statements have not yet been delivered to the registrar of companies.

The statutory accounts for the period will be posted to shareholders on or
before 17 November 2005 and copies will be available, free of charge, for a
period of one month following posting to shareholders from the registered office
of the Company.




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