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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Yougov Plc | LSE:YOU | London | Ordinary Share | GB00B1VQ6H25 | ORD 0.2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14.00 | 1.58% | 900.00 | 880.00 | 910.00 | 900.00 | 885.00 | 885.00 | 267,769 | 16:35:09 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Coml Econ, Sociolog, Ed Resh | 258.3M | 34.5M | 0.2948 | 30.36 | 1.05B |
From Apr 2019 to Apr 2024
TIDMYOU
RNS Number : 5387A
YouGov PLC
27 March 2017
27 March 2017
YouGov plc
Interim results for the six months ended 31 January 2017
Hot Features
Premium
Summary of Results
---------------------------------------------------------------------------------
Six months Six months Change Full Year
to to % to
31 January 31 January 31 July
2017 2016 2016
GBPm GBPm GBPm
-------------------------------- ------------ ------------ ------- ----------
Revenue 51.4 41.5 24% 88.2
-------------------------------- ------------ ------------ ------- ----------
Adjusted Operating Profit(1) 5.7 4.3 33% 10.9
-------------------------------- ------------ ------------ ------- ----------
Adjusted Operating Profit
Margin (%) 11% 10% - 12%
-------------------------------- ------------ ------------ ------- ----------
Adjusted Profit before Tax(1) 6.3 5.0 27% 13.3
-------------------------------- ------------ ------------ ------- ----------
Adjusted Earnings per Share(1) 4.2p 3.4p 21% 8.8p
-------------------------------- ------------ ------------ ------- ----------
Statutory Operating Profit 2.5 1.7 42% 4.3
-------------------------------- ------------ ------------ ------- ----------
Statutory Profit before
Tax 2.5 1.9 31% 5.5
-------------------------------- ------------ ------------ ------- ----------
Statutory Earnings per Share 1.4p 1.2p 16% 3.3p
-------------------------------- ------------ ------------ ------- ----------
Financial highlights - Strong revenue and profit growth
-- Revenue growth of 24% (2016: 15%) - Constant currency growth of 8% -- Adjusted operating profit(1) up by 33% to GBP5.7m - Constant currency growth of 14% -- Adjusted profit before tax up by 27% to GBP6.3m -- Adjusted earnings per share up by 21% to 4.2p (2016: 3.4p) -- Adjusted operating profit margin up 1 percentage point to 11% -- Net cash balances of GBP15.0m (31 January 2016: GBP10.1m)
Operational highlights - Good progress in line with the 5 year growth plan
-- Data Products and Services revenue up by 39% to GBP22.0m; now represents 43% of total (2016: 38%)
o YouGov BrandIndex revenue up by 36% to GBP9.2m
o YouGov Profiles revenue up by 175% to GBP1.4m
o YouGov Omnibus revenue up by 38% to GBP10.2m
-- Custom Research revenue up by 15% to GBP29.6m; now represents 57% of total (2016: 62%) -- New senior management appointment - Global CEO, Custom Research
(1) Defined in the explanation of non-IFRS measures on page 14.
Commenting on the results, Stephan Shakespeare, Chief Executive, said:
"I am pleased to report another strong period of organic revenue and profit growth.
We are consistently delivering against our strategy and making good progress towards our ambitious goals. We are investing in technology, constantly improving the scope and depth of our data and leveraging our highly sophisticated core data engine, YouGov Cube. This focus has helped us continue to outperform the market and it is enabling YouGov to expand in new markets and become a powerful global data and analytics brand.
Trading during the second half of our financial year has started positively and is in line with our expectations. We have built a strong base and continue to see significant opportunity to further grow revenues from Data Products and Data Services and deliver on our long-term objectives."
Enquiries:
YouGov plc Stephan Shakespeare / Alan Newman 020 7012 6000 FTI Consulting Charles Palmer / Harry Staight 020 3727 1000 Numis Securities Limited (NOMAD and broker) Nick Westlake / Toby Adcock / Michael Wharton 020 7260 1000
Chief Executive Officer's Review
Introduction
We are pleased to report on a further half-year in which YouGov has delivered good organic revenue growth and a significant increase in profitability consistent with the plans previously laid out to our shareholders. This performance has been driven by the continued strong growth in our subscription-based Data Products and our fast turnaround Data Services. This progress has been complemented by steady margin improvements in the more traditional custom research services.
Group revenue in the six months ended 31 January 2017 of GBP51.4m represented a year-on-year increase of 24% in reported terms and 8% on a constant currency basis, thus maintaining our growth rate well above that of the global research market. The Group's adjusted operating profit increased by 33% to GBP5.7m (14% growth on a constant currency basis) and the operating margin rose by 1% point to 11%.
Revenue from the Data Products and Services segment rose by 39% (24% in constant currency terms) to GBP22.0m. Its share of total Group revenue increased from 38% to 43%, a year-on-year increase of 5% points, and a further progression towards the goal of Data Products and Services achieving parity with custom research revenue. Data Products and Services accounted for 60% of Group adjusted operating profit before central costs (2016: 59%). Within Data Products and Services, YouGov BrandIndex revenue grew by 36% (17% constant currency) to GBP9.2m and the newer YouGov Profiles media planning and segmentation analytical product grew by 176% (150% at constant currency) to GBP1.4m. YouGov Omnibus revenue grew by 38% (24% at constant currency) to GBP10.2m.
Custom Research revenue increased by 15% in reported terms although it was static in constant currency terms while its adjusted operating profit increased by 26% to GBP3.5m. The operating margin increased by 1% point to 12%. Contributory factors to this performance included a planned reduction in non-core research work (especially in Germany) and increased gross margins due in part to this reduction.
Regionally, the USA - the Group's largest in revenue terms - grew its revenue by 29% (8% in constant currency terms) and increased its adjusted operating profit by 31% to GBP4.3m. Its operating margin rose by 1% point to 22%. This profit improvement is largely due to continued growth of Data Products (BrandIndex and Profiles) which now represents a third of the total US revenue. UK revenue grew by 8% and its operating profit by 21%, with Custom Research growing by 13% due mainly to winning more large panel-based trackers while data products and services grew by 5%. Revenue in the Middle East region fell by 3% in underlying terms, although the region was up by 16% in reported terms while maintaining its margin and increasing adjusted operating profit by 13%. Nordic revenue grew by 25% (6% in constant currency), this was mainly driven by the higher margin Data Services. This had a positive impact on margin which improved by 5% points to 15% and adjusted operating profit which increased by 84%. In Germany, the strategy of directing resources and marketing towards Data Products and Services succeeded in delivering 37% revenue growth (15% in local currency) and an adjusted operating profit, this compares to breaking even in the comparable period last year. France doubled its BrandIndex revenue contributing to 41% overall growth (19% in local currency) and Asia Pacific maintained its rapid growth with a 91% revenue increase (60% in local currency terms), largely in BrandIndex and Omnibus although the adjusted operating loss increased from GBP0.2m to GBP0.6m reflecting continued investment, as planned, in the region's development.
The Group's adjusted operating profit margin increased to 11% compared to 10% in the six months to 31 January 2016. The gross margin increased from 76% to 79% due partly to a higher proportion of custom research conducted on our own panels. Conversely, the operating expense ratio increased from 66% to 68%, reflecting planned investments in sales and product teams and the increased weighting of a higher US expense ratio due to the stronger dollar FX rates. At 31 January 2017, Group staff numbers totalled 783 (full time equivalents), an increase of 1% from 773 at 31 July 2016 and of 20% compared to 31 January 2016.
Cash generated from operations was GBP4.6m, compared to GBP3.9m in the corresponding period. The cash conversion rate remained within our planned range at 81% of adjusted operating profit, compared to 90% in the six months to 31 January 2016. The lower rate was mainly due to an increase in trade and other receivables of GBP2.2m. The cash balances at 31 January 2017 of GBP15.0m were GBP4.9m higher than at 31 January 2016 although GBP0.6m lower than at 31 July 2016. This included the benefit of GBP0.4m of exchange gains (2016: GBP0.6m).
A dividend of 1.4p per share in respect of the year ended 31 July 2016 was paid to shareholders in December 2016, following the AGM. This represented an increase of 40% over the dividend paid in 2015. The Board expects to be able to recommend in October a further increase in the annual dividend to be paid in December 2017 in line with the Company's progressive dividend policy.
Strategy
With 32 offices in 21 countries and panels in 38 countries, YouGov has one of the world's top ten international market research networks.
The six-month results show continued acceleration of YouGov's performance in line with the data product-driven strategy that we have outlined over the recent years: focusing on developing an ever-better store of unique connected marketing data which is turned into syndicated data products (BrandIndex, Profiles) and efficient data services (Omnibus, Custom trackers). The Group is making good progress on a plan we have laid out explicitly and consistently. We are seeing increasing market interest in our well-differentiated offer and are confident that we can continue developing it towards a new systematic way of doing market research. In the next phase of our development, we will enlarge the scope and depth of our data; further develop our technology infrastructure for gathering, analysing and delivering it; and apply it to a greater proportion of custom research projects so that everything we do builds on the value of our core engine, the YouGov Cube.
We have advanced well with each of our five strategic objectives:
Grow our syndicated product suite
We have created a 'data applications team' that is innovating with new ways to adapt our engineered data system to meet client needs in reproducible formats. The first of these is a new productised service that allows daily tracking of campaign effectiveness using pre-formatted custom add-ons to BrandIndex.
Integrate custom and syndicated data
Custom research projects are beginning to use 'Cube data' to enrich analysis. This is still in an early stage but the development of the Crunch analytics platform and its growing usefulness to custom researchers will mean faster integration in the year ahead.
Enhance our user experience
We have launched a survey-taking mobile app in the UK, US and Germany that makes it easier and more fun to take part in the YouGov experience. We are upgrading the 'welcome suite' of 20 surveys that new members receive in the first months of joining the panel. On the client front, Crunch, our data analytics tool, makes access to the Cube easier and faster and allows exploration of the data in a much more intuitive way
Boost our public profile
Awareness of YouGov in the US has increased significantly as a result of our election polling for CBS News. We expanded our relationship with CBS in 2016 and are now firmly in the group of well-known and trusted US pollsters. For the Presidential election, our national poll had an error of 1.4% on the final margin, which was well within the standard statistical margin of error. Our state-level estimates were, on average, more accurate than any of the other pollsters conducting state-level polls.
Expand our geographic footprint
We have added the 'mini-Cube' (an adapted version of our full Cube which is more suitable to new markets) to our panels in Singapore and Thailand, complementing existing mini-Cubes in Indonesia and Malaysia. We are planning to offer greater panel coverage across the Asia Pacific region.
Financial Performance
Total Group revenue in the period rose to GBP51.4m compared to GBP41.5m in the six months to 31 January 2016. Growth was 8% on a constant currency basis but 24% in reported terms due to the depreciation of GBP Sterling against US dollar, Euro and other currencies since the six months ended 31 January 2016.
Gross margins increased by 3% points to 79% and Group operating costs (excluding amortisation of intangibles and exceptional items) of GBP34.9m (2016: GBP27.2m) increased by 28% in reported terms, although only by 14% in constant currency terms.
Total Group adjusted operating profit, before amortisation and exceptional items, grew by 33% to GBP5.7m compared to GBP4.3m in the six months ended 31 January 2016. Amortisation charges for intangible assets totalled GBP3.1m (2016: GBP2.5m) in the period of which GBP0.5m (2016: GBP0.4m) related to assets acquired through business combinations, GBP1.3m (2016: GBP1.0m) to separately acquired assets and GBP1.3m (2016: GBP1.1m) to the Group's internally generated assets.
The Group recognised net financial income of GBP0.1m compared to GBP0.2m in the six months to 31 January 2016.
Analysis of Adjusted Operating Six months Six months Full Year
Profit & Earnings per Share to to to
31 Jan 2017 31 Jan 2016 31 July 2016
GBP000 GBP000 GBP000
------------ ------------ -------------
Adjusted group operating profit(1) 5,669 4,274 10,917
Share based payments 625 531 1,111
Imputed interest - 12 27
Net finance income/(cost) 53 182 1,199
Share of post-tax profit in
associates - 4 (4)
------------ ------------
Adjusted profit before tax(1) 6,346 5,003 13,250
Adjusted taxation(1) (1,989) (1,423) (4,099)
------------ ------------ -------------
Adjusted profit after tax(1) 4,357 3,580 9,151
Basic earnings per share (pence) 1.4 1.2 3.3
Adjusted earnings per share
(pence)(1) 4.2 3.4 8.8
-------------------------------------- ------------ ------------ -------------
(1) Defined in the explanation of non-IFRS measures on page 14.
The higher operating profit combined with the net financial income led to the adjusted profit before tax of GBP6.3m increasing by GBP1.3m (27%) from the comparable result of GBP5.0m. The adjusted tax rate increased from 28% to 31% as a result of higher losses in Asia Pacific and lower profits in Dubai where tax rates are lower than average. Adjusted earnings per share rose by 21% to 4.2p, compared to 3.4p in the six months to 31 January 2016. A statutory profit before tax of GBP2.5m was reported after charging exceptional items, amortisation and share based payment costs of GBP3.5m (2016: GBP3.1m) compared to GBP1.9m in the six months ended 31 January 2016.
Cash generated from operations (before paying interest and tax) of GBP4.6m increased by GBP0.7m. Receivables increased by GBP2.2m (2016: GBP2.0m) and the Group's receivable days (after adjusting for the unbilled portion of revenue recognised less amounts billed in advance) increased to 62 days from 56 days as at 31 January 2016. Creditor days increased to 35 days from 27 days as at 31 January 2016.
Current liabilities includes GBP8.5m of deferred revenue in respect of subscriptions (an increase of GBP3.2m from 31 January 2016), which contributed to the increase in net cash in the last year.
The Group invested GBP1.6m (2016: GBP1.3m) in the continuing development of our technology platform and increased the investment in panel recruitment to GBP1.4m (2016: GBP0.9m) to support its expansion in a number of geographies. GBP0.4m (2016: GBP0.3m) was spent on the purchase of tangible assets, resulting in a total investment in fixed assets of GBP3.4m (2016: GBP2.6m). Other cash outflows included taxation payments of GBP0.9m (2016: GBP0.7m) and the annual dividend payment of GBP1.5m (2016: GBP1.0m) in December 2016.
There was a net cash outflow of GBP1.0m in the period, compared to GBP0.5m in the six months to 31 January 2016. This was partly offset by a GBP0.4m increase in the value of non-Sterling cash balances due to foreign exchange movements so that net cash balances of GBP15.0m were GBP0.6m lower than at 31 July 2016 and GBP4.9m higher than the balances of GBP10.1m as at 31 January 2016.
Currency
The Group's results benefitted from the depreciation of the GBP as its average exchange rate was 16% lower against both the US$ and Euro in this period than in the 6 months to 31 January 2016. US$ and related appreciation led to aggregate revenue growth in our US, Middle East and Asia Pacific units being 29% in reported terms compared to underlying growth of 8%. In Germany, France and the Nordics, the reported revenue growth was 18% compared to 11% in local currency terms. The net impact of foreign exchange on the Groups' adjusted operating profit was an increase of GBP0.8m compared to calculation in constant currency terms. The underlying increase, compared to the 6 months ended 31 January 2016, was 14%.
Current trading and outlook
Current trading is in line with the Board's expectations and we remain confident in our ability to achieve our ambitious goals and deliver shareholder value. Within Data Products and Services, our pipeline of opportunities for BrandIndex and Omnibus remains strong and the growth potential of the newer YouGov Profiles is significant. We continue to build out YouGov Cube across our panels which supports the delivery of differentiated custom research to our clients and will help to drive sustained growth. We will keep investing in our technology platform to support expansion in line with our strategic objectives.
Review of Global Products and Services
Revenue Six months Six months Revenue Revenue
to to Growth Growth
31 Jan 31 Jan % at Constant
2017 2016 Currency
GBPm GBPm %
---------------------------------- ----------- ----------- -------- -------------
Data Products (incl. BrandIndex) 11.0 7.7 43% 24%
---------------------------------- ----------- ----------- -------- -------------
Data Services (incl. Omnibus) 11.0 8.1 36% 22%
---------------------------------- ----------- ----------- -------- -------------
Total Data Products & Services 22.0 15.8 39% 23%
---------------------------------- ----------- ----------- -------- -------------
Custom Research 29.6 25.7 15% 0%
---------------------------------- ----------- ----------- -------- -------------
Eliminations (0.2) - - -
---------------------------------- ----------- ----------- -------- -------------
Group 51.4 41.5 24% 8%
---------------------------------- ----------- ----------- -------- -------------
Adjusted Operating Profit Six months Six months Operating Operating Margin
to to Profit
31 Jan 2017 31 Jan Growth
GBPm 2016 %
GBPm
--------------------------- ------------- ----------- ---------- ----------------------------
Six months Six months
to to
31 Jan 2017 31 Jan 2016
--------------------------- ------------- ----------- ---------- ------------- -------------
Data Products (incl.
BrandIndex) 2.8 1.9 49% 25% 24%
--------------------------- ------------- ----------- ---------- ------------- -------------
Data Services (incl.
Omnibus) 2.5 2.0 22% 22% 25%
--------------------------- ------------- ----------- ---------- ------------- -------------
Total Data Products
& Services 5.3 3.9 35% 24% 25%
--------------------------- ------------- ----------- ---------- ------------- -------------
Custom Research 3.5 2.7 27% 12% 11%
--------------------------- ------------- ----------- ---------- ------------- -------------
Unallocated Costs (3.1) (2.3) - - -
--------------------------- ------------- ----------- ---------- ------------- -------------
Group 5.7 4.3 33% 11% 10%
--------------------------- ------------- ----------- ---------- ------------- -------------
Data Products
Data Products are comprised of YouGov BrandIndex, our flagship brand intelligence tracker (84% of the total revenue) and the newer YouGov Profiles segmentation and planning product (13% of total revenue). YouGov Reports' range of market intelligence reports in the UK is being re-configured into a digital product so only accounted for 3% of Data Products revenue in the period.
Data products, once they are mature, have a higher profit margin than custom research as the outputs are sold to multiple clients while the input costs, such as data collection and analysis, are incurred only once.
In this period, the total revenue from Data Products increased by 43% (24% in constant currency terms). Within this, YouGov BrandIndex revenue grew by 36% (17% in constant currency terms) to GBP9.2m (2016: GBP6.8m). This flagship product now accounts for 18% of total Group revenue in the period and increased its subscriber numbers to 553 in 32 markets across the world. These included five markets added in the period: Italy, Spain, Philippines, Taiwan and Vietnam.
YouGov Profiles is updated weekly and offers the largest, most detailed and real-time consumer database in the market. It was first launched in the UK in November 2014, and was available in six markets during the period. Versions for Denmark and Sweden were launched in the market in February 2017. Profiles made good progress in the six months to 31 January 2017, achieving sales with a total contract value of GBP4m, and growing its subscriber base by 50% to over 100 subscribers, many of whom also subscribe to BrandIndex. The sales in this period together with the subscription growth achieved last year led to global revenue increasing by 176% (150% constant currency) to GBP1.4m.
The adjusted operating profit from Data Products increased by 49% to GBP2.8m and the operating margin increased by 1% point to 25%. The stable margin partly reflects the growing contribution from Profiles in which there was little additional investment in the period
YouGov Profiles and YouGov BrandIndex are complementary products that draw on and provide users with access to different combinations of datasets from the YouGov Cube. In the markets where both products are available (UK, USA, Germany, China, Indonesia and Malaysia in this period) the two are increasingly marketed together under the banner of "Plan and Track". This reflects the fact that Profiles primarily enables marketers, advertisers and media owners to profile their actual and potential customers and plan targeted campaigns while BrandIndex enables them to track and measure the impact of campaigns and other events on consumers' attitudes to their brand, including their likelihood to buy. Our pricing policy incentivises clients to take both data products, and an increasing proportion of them in the markets concerned are buying both.
Geographically, the USA remains the largest Data Products market and grew by 48% in GBP terms, (23% in local currency). There was strong revenue growth also in several other markets including 84% in Germany (55% in local currency) and 46% in the Nordics (23% in local currency), reflecting the Northern European management's actions to build up the data products segment. The newer markets of France and Asia Pacific each doubled their revenue in reported terms (70% growth in local currency terms). In the UK, revenue grew by 8%, a slower rate than the previous year, due to slow new business sales in the second half of the previous financial year. The salesforce structure was re-organised in mid-2016 and the sales trend is now improving.
Although data categories covered by YouGov Profiles are standard, some individual data components are tailored for each country version. The UK version of Profiles is based on a database of some 200,000 separate data variables on consumers, collected initially from approximately 250,000 YouGov panellists. The tool connects data on profiles, brand, sector, and media, digital and social data all in one place combining that with attitudes, interests, views and likes. For example, it provides brand usage and perception data for some 1,000 brands (plus usage for thousands more), TV viewing for 5,000 programmes, website usage for the most active commercial websites, thousands of "likes" on music artists, films, personalities and much more.
During 2016, further functionality was introduced enabling Profiles data to be used in programmatic advertising processes, which are proving increasingly popular with our UK and US digital media agency clients. We have also introduced a dynamic segmentation offering, allowing clients to run segmentations that are full of colour and continually updated when combined with their Profiles subscription.
BrandIndex serves major accounts among both advertising and media planning agencies on the one hand and brand owners and advertisers on the other. Its long-standing clients include OMD, Universal McCann, Bank of America, KFC and Subway. Profiles clients include advertising and media agencies such as MEC, OMG and Mediacom, and brand owners such as RBS, Telefónica UK and Viacom.
We are refocussing YouGov Reports, which has been a UK only service up to now, into a more international, digital offering. This draws on the full breadth of YouGov's research products and services to provide analyses and data through an online portal. The service will cover more than 1,500 topic areas across 300 reports, providing consumer opinions, attitudes and behaviour data, along with market trends, forecasts and competitor intelligence. These reports will be made available through an online portal that provides advanced search, analysis and translation functionality as well as the ability to buy reports online through the portal. Users will be able to view and interrogate data in the reports using a new charting tool "Crunchbox". The new service will be launched in mid-2017, initially for the UK and German markets. The reports are designed as an entry point into the YouGov Cube, our proprietary database, through which clients can analyse thousands of data points about consumer attitudes and behaviour. Using a story-telling approach, the upgraded reports connect with a portal which enables users to interact with and interrogate Cube data.
Data Services
Revenue from YouGov Omnibus, our online fast turnaround service (which represents 93% of Data Services) increased by 38% (24% in constant currency terms) to GBP10.2m, mainly due to strong growth in international markets. This included a doubling of reported revenue in Germany (86% growth in local currency), and 48% increase in Nordic (25% in local currency) reflecting the Northern European management initiatives to improve the marketing and selling of the core YouGov service. The newer markets, Asia Pacific and USA, also grew strongly, respectively by 88% (57% local currency) and 84% (54% local currency). In the UK, where YouGov Omnibus is the market leader, revenue grew by 3%. This growth contributed to an increase of 22% in the Data Services operating profit to GBP2.5m although the operating margin fell slightly from 25% to 23% reflecting investment in the newer markets, notably Asia Pacific.
One of the Omnibus strengths is the creation of specialised versions to enable clients to access specific, more narrowly defined segments. The UK already offers a range of these including Children and Parents, Shoppers, Metro Cities and Small and Medium Enterprise owners (SME). The latter now enables Omnibus to support business-to-business as well as consumer research work. Outside the UK, specialised Omnibus services include; Citybus covering eight major cities in Asia Pacific; Homeowners in the USA; and Pet Owners and Car Drivers in Germany.
YouGov Profiles subscribers are now able to undertake "recontact" surveys using Omnibus through which they can obtain additional data tailored to their needs from segments of the panel with specific profile characteristics. These survey results can be imported into the Profiles tool thus enhancing the number of data-points available for that specific respondent group.
Custom Research
YouGov's Custom Research business conducts a wide range of quantitative and qualitative research whose scope, scale and complexity of projects varies significantly. It ranges from large-scale national and multinational tracking studies, through to one-off surveys designed to address a specific commercial, social or political issue for the client.
YouGov's panel-centric methodology and ability to collect and analyse data rapidly have been enhanced by delivery of results through the Crunch analytics platform. This is ideal for meeting clients' needs for faster and more continuous tracking data, for which projects are often contracted on an annual basis. The YouGov Cube also enables survey data to be connected with other data from our library or that forms part of a data product such as BrandIndex or Profiles.
However, some parts of YouGov's global Custom Research business inherited through acquisitions have been less well adapted to our core model. As part of our strategy to harmonise the Custom Research business and continue to improve its profitability some of these were scaled down or restructured during the period. This included exiting parts of the German business with low gross margins and reorganising the operational support in Germany, Nordic and USA so as to transfer work to the new Romanian shared services centre. The restructuring costs relating to Germany were provided for in the year ended 31 July 2016.
The rationalisation strategy led to mixed performances across the geographies. In the UK where our panel-based model is most consistent, revenue grew by 13%, benefitting from several tracker contracts and the operating margin increased from 13% to 23%. In the US, revenue increased by 19% in reported terms but was static in local currency terms. While the California-based unit that conducts data-rich research for the internet technology, academic and political sectors performed well, assisted by the US Presidential election, this was offset by lower revenue from other areas. Middle East revenue fell by 5% in local currency terms although up by 14% in reported terms due to reductions in Dubai and Saudi Arabia, especially of non-panel work. Although reported revenue increased in the Nordics and Germany it fell in local currency terms in both markets.
Reflecting the reduction of activities in some areas, total Custom Research revenue was static in constant currency terms although it grew by 15% in reported terms to GBP29.6m. However, the adjusted operating profit increased by 27% to GBP3.5m and the operating margin improved by 1% point to 12%. This was largely due to gross margins increasing by 4% points as the proportion of on-panel work increased and external data collection costs fell.
The rationalisation initiatives led to the total number of staff engaged in Custom Research across the Group falling for the first time year-on-year (from 312 to 302).
YouGov remains firmly committed to developing its differentiated custom research offering globally and to building out the YouGov Cube across all our panels to support this. To reinforce this commitment and lead the continuing global development of our Custom Research business in line with our strategy, the new role of Global CEO of Custom Research was established in November 2016 and Stefan Kaszubowski, a long-standing senior manager of the Group, was appointed to it.
Review of Geographic Operations
Revenue Six months Six months Revenue Revenue
to to Growth Growth at
31 Jan 2017 31 Jan 2016 % Constant Currency
GBPm GBPm %
--------------------- ------------ ------------ ------- ------------------
UK 12.5 11.6 8% 8%
--------------------- ------------ ------------ ------- ------------------
USA 19.7 15.2 29% 8%
--------------------- ------------ ------------ ------- ------------------
Germany 5.3 3.9 37% 15%
--------------------- ------------ ------------ ------- ------------------
Nordic 4.6 3.7 25% 6%
--------------------- ------------ ------------ ------- ------------------
Middle East 7.5 6.5 16% (3%)
--------------------- ------------ ------------ ------- ------------------
France 1.1 0.7 42% 19%
--------------------- ------------ ------------ ------- ------------------
Asia Pacific 2.3 1.2 91% 60%
--------------------- ------------ ------------ ------- ------------------
Intra-group Revenues (1.6) (1.3) -
--------------------- ------------ ------------ ------- ------------------
Group 51.4 41.5 24% 8%
--------------------- ------------ ------------ ------- ------------------
Adjusted Operating Six months Six months Operating Operating Margin
Profit to to Profit Growth
31 Jan 31 Jan 2016 %
2017 GBPm
GBPm
-------------------- ----------- ------------- --------------- ----------------------------
Six months Six months
to to
31 Jan 2017 31 Jan 2016
-------------------- ----------- ------------- --------------- ------------- -------------
UK 3.1 2.5 21% 25% 22%
-------------------- ----------- ------------- --------------- ------------- -------------
USA 4.3 3.3 31% 22% 21%
-------------------- ----------- ------------- --------------- ------------- -------------
Germany 0.2 - - 5% 1%
-------------------- ----------- ------------- --------------- ------------- -------------
Nordic 0.7 0.4 84% 15% 10%
-------------------- ----------- ------------- --------------- ------------- -------------
Middle East 1.2 1.1 13% 16% 16%
-------------------- ----------- ------------- --------------- ------------- -------------
France 0.1 - - 9% -
-------------------- ----------- ------------- --------------- ------------- -------------
Asia Pacific (0.6) (0.2) (219%) (24%) (15%)
-------------------- ----------- ------------- --------------- ------------- -------------
Unallocated Costs (3.3) (2.8) - - -
-------------------- ----------- ------------- --------------- ------------- -------------
Group 5.7 4.3 33% 11% 10%
-------------------- ----------- ------------- --------------- ------------- -------------
Panel development
We continue to invest in our online panel to increase our research capabilities, both in new geographies and specialist panels. Our focus is on improving the quality and engagement of our panel and our recruitment processes are designed to ensure a high quality on-boarding experience for new panellists as well as to meet our business needs. The total number of panellists increased to 5.6 million as at 31 January 2017 compared to 4.2 million as at 31 January 2016 as set out in the table below. The main increases have been in the USA and Middle East.
Region Panel size at Panel size at
31 January 2017 31 January 2016
-------------- ---------------- ----------------
USA 2,063,900 1,789,100
-------------- ---------------- ----------------
UK 1,017,600 816,300
-------------- ---------------- ----------------
Middle East 1,073,300 558,100
-------------- ---------------- ----------------
Germany 272,700 218,300
-------------- ---------------- ----------------
Nordic 258,800 203,600
-------------- ---------------- ----------------
France 179,400 155,100
-------------- ---------------- ----------------
Asia Pacific 688,600 491,700
-------------- ---------------- ----------------
Total 5,554,300 4,232,200
-------------- ---------------- ----------------
Stephan Shakespeare
Chief Executive Officer
27 March 2017
Explanation of Non-IFRS measures
Financial Measure How we define it Why we use it
------------------------ -------------------------------- -------------------------------
Adjusted operating Operating profit excluding Provides a more comparable
profit amortisation of intangible basis to assess the
assets charged to operating year-to-year operational
expenses and exceptional business performance
items
------------------------ -------------------------------- -------------------------------
Adjusted operating Adjusted operating
profit margin profit expressed as
a percentage of revenue
------------------------ -------------------------------- -------------------------------
Adjusted profit Profit before tax before
before tax amortisation of intangible
assets charged to operating
profit, share based
payment charges, imputed
interest and exceptional
costs.
------------------------ -------------------------------- -------------------------------
Adjusted taxation Taxation due on the Provides a more comparable
adjusted profit before basis to assess the
tax, thus excluding underlying tax rate
the tax effect of amortisation
and exceptional items.
------------------------ -------------------------------- -------------------------------
Adjusted tax rate Adjusted taxation expressed
as a percentage of
adjusted profit before
tax
------------------------ -------------------------------- -------------------------------
Adjusted profit Adjusted profit before Facilitates performance
after tax tax less adjusted taxation evaluation, individually
and relative to other
companies
------------------------ -------------------------------- -------------------------------
Adjusted profit Adjusted profit after
after tax attributable tax less profit attributable
to owners of the to non-controlling
parent interests
------------------------ -------------------------------- -------------------------------
Adjusted earnings Adjusted profit after
per share tax attributable to
owners of the parent
divided by the weighted
average number of shares.
Adjusted diluted earnings
per share includes
the impact of share
options.
------------------------ -------------------------------- -------------------------------
Constant currency Current year revenue Shows the underlying
revenue change change compared to revenue change by eliminating
prior year revenue the impact of foreign
in local currency translated exchange rate movements
at the current year
average exchange rates.
------------------------ -------------------------------- -------------------------------
Cash conversion The ratio of cash generated Indicates the extent
from operations to to which the business
adjusted operating generates cash from
profit adjusted operating
profits
------------------------ -------------------------------- -------------------------------
YOUGOV PLC
STATEMENT OF DIRECTORS' RESPONSIBILITiES
For the six months ended 31 January 2017
The Board of Directors confirm that, to the best of their knowledge, these consolidated interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
-- 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 2016.
By order of the Board:
Alan Newman
Chief Financial Officer
27 March 2017
YOUGOV PLC
consolidated STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 January 2017
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2017 2016 2016
Note GBP'000 GBP'000 GBP'000
Revenue 4 51,363 41,521 88,202
Cost of sales (10,816) (10,021) (19,476)
----------- ----------- -----------
Gross profit 40,547 31,500 68,726
Operating expenses (38,084) (29,759) (64,395)
----------- ----------- -----------
Operating profit 4 2,463 1,741 4,331
----------------------------------------- ----- ----------- ----------- -----------
Amortisation of intangible assets 3,103 2,513 5,478
Exceptional items 5 103 20 1,108
----------- ----------- -----------
Adjusted operating profit 5,669 4,274 10,917
----------------------------------------- ----- ----------- ----------- -----------
Share of post-tax profits in
joint ventures - 4 (4)
Finance income 390 221 2,144
Finance costs (337) (39) (945)
Profit before taxation 2,516 1,927 5,526
Taxation 6 (1,047) (653) (2,111)
----------- ----------- -----------
Profit after taxation 1,469 1,274 3,415
----------- ----------- -----------
Attributable to:
Equity holders of the parent
company 1,469 1,252 3,401
Non-controlling interests - 22 14
----------- ----------- -----------
1,469 1,274 3,415
----------- ----------- -----------
Earnings per share
Basic earnings per share attributable to equity holders of the company 7 1.4p 1.2p 3.3p Diluted earnings per share attributable to equity holders of the company 7 1.4p 1.2p 3.2p
YOUGOV PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 January 2017
Unaudited Unaudited Audited
6 months 6 months
to to Year ended
31 January 31 January 31 July
2017 2016 2016
GBP'000 GBP'000 GBP'000
Profit for the period 1,469 1,274 3,415
Other comprehensive income
Item that may be subsequently reclassified
to profit or loss
Currency translation differences 2,349 4,088 8,271
Other comprehensive income for
the year net of tax 2,349 4,088 8,271
----------- ----------- -----------
Total comprehensive income for
the period 3,818 5,362 11,686
----------- ----------- -----------
Attributable to:
Equity holders of the parent company 3,818 5,338 11,667
Non-controlling interests - 24 19
----------- ----------- -----------
Total comprehensive income for
the period 3,818 5,362 11,686
----------- ----------- -----------
Items in the statement above are disclosed net of tax.
YOUGOV PLC
consolidated STATEMENT OF FINANCIAL POSITION
As at 31 January 2017
Unaudited Unaudited Audited
31 January 31 January 31 July
2017 2016 2016
Assets Note GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 9 44,184 38,816 42,401
Other intangible assets 9 10,896 10,449 10,739
Property, plant and equipment 9 3,545 3,091 3,568
Investments in joint ventures
and associates 242 265 242
Deferred tax assets 5,722 4,948 5,416
----------- ----------- --------
Total non-current assets 64,589 57,569 62,366
----------- ----------- --------
Current assets
Trade and other receivables 31,883 26,396 28,643
Current tax assets 1,490 447 1,143
Cash and cash equivalents 14,997 10,140 15,553
----------- ----------- --------
Total current assets 48,370 36,983 45,339
----------- ----------- --------
Total assets 112,959 94,552 107,705
----------- ----------- --------
Liabilities
Current liabilities
Trade and other payables 26,426 21,189 25,839
Provisions 2,051 3,883 1,592
Current tax liabilities 596 175 392
Total current liabilities 29,073 25,247 27,823
----------- ----------- --------
Net current assets 19,299 11,736 17,516
----------- ----------- --------
Non-current liabilities
Trade and other payables - 4 -
Provisions 4,670 935 4,255
Deferred tax liabilities 1,528 1,767 1,538
----------- ----------- --------
Total non-current liabilities 6,198 2,706 5,793
----------- ----------- --------
Total liabilities 35,271 27,953 33,616
----------- ----------- --------
Net assets 77,688 66,599 74,089
----------- ----------- --------
Equity
Issued share capital 10 210 209 209
Share premium 31,221 31,051 31,086
Merger reserve 9,239 9,239 9,239
Foreign exchange reserve 16,079 9,550 13,730
Retained earnings 20,909 16,523 19,795
------- ------- -------
Total shareholders' funds 77,658 66,572 74,059
Non-controlling interests
in equity 30 27 30
------- ------- -------
Total equity 77,688 66,599 74,089
------- ------- -------
The accompanying accounting policies and notes form an integral part of this financial information.
Alan Newman
Chief Financial Officer
27 March 2017
YOUGOV PLC
consolidated statement of changes in equity
For the six months ended 31 January 2017
Attributable to equity holders of
the Company
------------------------------------------------------------
Foreign
Share Share Merger exchange Retained Non-controlling
capital premium reserve reserve earnings Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------- --------- -------- --------------- ----------
Balance at 1 August 2015 206 31,051 9,239 5,464 15,635 61,595 28 61,623
Changes in equity for 2016
Exchange differences on
translating
foreign operations - - - 8,266 - 8,266 5 8,271
-------- -------- -------- --------- --------- -------- --------------- --------
Net income recognised
directly
in equity - - - 8,266 - 8,266 5 8,271
Profit for the year - - - - 3,401 3,401 14 3,415
-------- -------- -------- --------- --------- -------- --------------- --------
Total comprehensive income
for the year - - - 8,266 3,401 11,667 19 11,686
-------- -------- -------- --------- --------- -------- --------------- --------
Issue of shares 3 35 - - (3) 35 - 35
Dividends paid - - - - (1,042) (1,042) (14) (1,056)
Share-based payments - - - - 1,111 1,111 - 1,111
Tax in relation to share
based
payments - - - - 721 721 - 721
Purchase of non-controlling
interest in subsidiary - - - - (28) (28) (3) (31)
-------- -------- -------- --------- --------- -------- --------------- --------
Total transactions with
owners
recognised directly in
equity 3 35 - - 759 797 (17) 780
-------- -------- -------- --------- --------- -------- --------------- --------
Balance at 31 July 2016 209 31,086 9,239 13,730 19,795 74,059 30 74,089
Changes in equity for 2017
Exchange differences on
translating
foreign operations - - - 2,349 - 2,349 - 2,349
-------- -------- -------- --------- --------- -------- --------------- --------
Net income recognised
directly
in equity - - - 2,349 - 2,349 - 2,349
Profit for the period - - - - 1,469 1,469 - 1,469
-------- -------- -------- --------- --------- -------- --------------- --------
Total comprehensive income
for the period - - - 2,349 1,469 3,818 - 3,818
-------- -------- -------- --------- --------- -------- --------------- --------
Issue of shares 1 135 - - (1) 135 - 135
Dividends paid - - - - (1,470) (1,470) - (1,470)
Share-based payments - - - - 625 625 - 625
Tax in relation to share
based
payments - - - - 491 491 - 491
-------- -------- -------- --------- --------- -------- --------------- --------
Total transactions with
owners
recognised directly in
equity 1 135 - - (355) (219) - (219)
-------- -------- -------- --------- --------- -------- --------------- --------
Balance at 31 January 2017 210 31,221 9,239 16,079 20,909 77,658 30 77,688
-------- -------- -------- --------- --------- -------- --------------- --------
YOUGOV PLC
consolidated cash flow statement
For the six months ended 31 January 2017
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2017 2016 2016
GBP'000 GBP'000 GBP'000
Profit before taxation 2,516 1,927 5,526
Adjustments for:
Finance income (390) (221) (2,144)
Finance costs 337 39 945
Share of post-tax profit in joint
ventures - (4) 4
Amortisation * 3,116 2,580 5,567
Depreciation 566 400 819
Share based payments 625 531 1,111
Other non-cash operating profit
items (255) (43) (36)
Increase in trade and otherreceivables (2,152) (1,970) (1,925)
(Decrease)/Increase in trade and
otherpayables (499) 325 3,229
Increase in provisions 728 287 1,043
----------- ----------- -----------
Cash generated from operations 4,592 3,851 14,139
Interest paid (1) (1) (1)
Income taxes paid (901) (650) (2,365)
----------- ----------- -----------
Net cash generated from operating
activities 3,690 3,200 11,773
----------- ----------- -----------
Cash flow from investing activities
Acquisition of non-controlling - (31) -
interest in subsidiary
Acquisition of non-controlling
interest in associate - (70) (140)
Proceeds from sale of property,
plant and equipment - - 7
Purchase of property, plant and
equipment (383) (322) (1,003)
Purchase of intangible assets (2,976) (2,232) (5,080)
Interest received 8 4 12
Dividends received - 14 28
----------- ----------- -----------
Net cash used in investing activities (3,351) (2,637) (6,176)
----------- ----------- -----------
Cash flows from financing activities
Acquisition of non-controlling
interests - - (31)
Proceeds from the issue of share
capital 135 - 35
Repayment of borrowings - - (19)
Dividends paid to company's shareholders (1,470) (1,043) (1,042)
Dividends paid to non-controlling
interest - (22) (14)
----------- ----------- -----------
Net cash used in financing activities (1,335) (1,065) (1,071)
----------- ----------- -----------
Net (decrease)/increase in cash
and cash equivalents (996) (502) 4,526
Cash and cash equivalents at beginning
of period 15,553 10,017 10,017
Exchange gain on cash and cash
equivalents 440 625 1,010
----------- ----------- -----------
Cash and cash equivalents at end
of period 14,997 10,140 15,553
----------- ----------- -----------
* Amortisation includes GBP13,000 (2016: GBP67,000) recognised in cost of sales.
YOUGOV PLC
notes to the consolidated interim financial statements
For the six months ended 31 January 2017
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.
YouGov plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. The address of YouGov plc's registered office is 50 Featherstone Street, London, EC1Y 8RT. YouGov plc's shares are listed on the Alternative Investment Market.
YouGov plc's consolidated interim financial statements are presented in Pounds Sterling (GBP), which is also the functional currency of the parent company.
These condensed consolidated interim financial statements have been approved for issue by the Board of Directors on 27 March 2017.
This consolidated interim financial information for the six months ended 31 January 2017 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 July 2016 were approved by the Board on 10 October 2016 and delivered to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain
any statement under section 498 of the Companies Act 2006. The consolidated financial statements of the Group for the year ended 31 July 2016 are available from the Company's registered office or website (www.yougov.com).
This consolidated interim financial information is unaudited and not reviewed by the auditors.
2 FORWARD LOOKING STATEMENTS
Certain statements in this interim report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements.
We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
3 BASIS OF PREPARATION
This consolidated interim report for the six months ended 31 January 2017 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and 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 2016, which has been prepared in accordance with IFRS's as adopted by the European Union.
Accounting policies
The accounting policies applied are consistent with those of the Annual Financial Statements for the year ended 31 July 2016, as described in those Annual Financial Statements.
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 2016.
Risks and uncertainties
The principal strategic level risks and uncertainties affecting the group remain those set out in the Strategic Report on pages 38 and 39 of the 2016 Annual Report.
The 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
The Board of Directors (which is the "chief operating decision maker") primarily reviews information based on product lines, Custom Research, Data Products & Data Services, with supplemental geographical information.
Custom Data Products Data Services Unallocated Group
Research
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six months to
31 January 2017 (Unaudited)
Revenue 29,639 10,996 10,976 (248) 51,363
Cost of sales (6,773) (1,887) (2,131) (25) (10,816)
---------- -------------- -------------- ------------ ---------
Gross profit 22,866 9,109 8,845 (273) 40,547
Operating expenses (19,378) (6,342) (6,352) (2,806) (34,878)
---------- -------------- -------------- ------------ ---------
Operating profit/(loss)
before amortisation of
intangible assets and
exceptional items 3,488 2,767 2,493 (3,079) 5,669
Amortisation of intangible
assets (3,103)
Exceptional items (103)
---------
Operating profit 2,463
Share of post-tax profits -
in associates
Finance income 390
Finance costs (337)
---------
Profit before taxation 2,516
Taxation (1,047)
---------
Profit after taxation 1,469
---------
Other segment information
Depreciation 365 57 85 59 566
---------- -------------- -------------- ------------ ---------
For the six months to
31 January 2016 (Unaudited)
Revenue 25,734 7,704 8,083 - 41,521
Cost of sales (6,826) (1,424) (1,771) - (10,021)
---------- -------------- -------------- ------------ ---------
Gross profit 18,908 6,280 6,312 - 31,500
Operating expenses (16,166) (4,422) (4,271) (2,367) (27,226)
---------- -------------- -------------- ------------ ---------
Operating profit/(loss)
before amortisation of
intangible assets and
exceptional items 2,742 1,858 2,041 (2,367) 4,274
Amortisation of intangible
assets (2,513)
Exceptional items (20)
---------
Operating profit 1,741
Share of post-tax profits
in associates 4
Finance income 221
Finance costs (39)
---------
Profit before taxation 1,927
Taxation (653)
---------
Profit after taxation 1,274
---------
Other segment information
Depreciation 247 50 59 44 400
---------- -------------- -------------- ------------ ---------
4 SEGMENTAL ANALYSIS (continued)
Supplementary information by geography
Six months to 31 Six months to 31
January 2017 (Unaudited) January 2016 (Unaudited)
Adjusted^ Adjusted^
operating operating
Revenue profit/(loss) Revenue profit/(loss)
GBP'000 GBP'000 GBP'000 GBP'000
UK 12,538 3,087 11,561 2,546
USA 19,650 4,279 15,204 3,261
Germany 5,287 240 3,866 25
Nordic 4,615 711 3,679 386
Middle East 7,538 1,184 6,508 1,051
France 1,047 94 740 1
Asia Pacific 2,342 (571) 1,226 (179)
Intra-group revenues
/
unallocated costs (1,654) (3,355) (1,263) (2,817)
---------- ---------------- ---------- ----------------
Group 51,363 5,669 41,521 4,274
---------- ---------------- ---------- ----------------
^Operating profit/(loss) before amortisation of intangible assets and exceptional items.
5 EXCEPTIONAL ITEMS
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2017 2016 2016
GBP'000 GBP'000 GBP'000
Restructuring costs 103 56 1,086
Legal costs - - 157
Acquisition related (income)/costs - (31) (130)
Change in accounting estimation
- contingent consideration - (5) (5)
Total exceptional costs 103 20 1,108
----------- ----------- -----------
Restructuring costs in the period comprise GBP103,000 resulting from the transfer of Operations in the US to the Operations Shared Service Centre based in Romania. In the prior year the rationalisation of the German Custom and Operations teams was announced and GBP550,000 was provided at the yearend for the anticipated cost. These rationalisations are progressing as planned and GBP279,000 of payments have been made in the period in respect of these rationalisations.
Restructuring costs in the prior period relate to the restructuring of the Group's software development team (GBP33,000) and the reorganisation of the management structure of the German (GBP16,000) and US (GBP7,000) businesses.
The acquisition related income in the prior period is in respect of the acquisition of Decision Fuel comprising a GBP50,000 reduction in contingent deemed staff costs net of GBP19,000 of transaction costs.
The change in estimated contingent consideration in the prior period is in respect of the Decision Fuel acquisition.
6 TAXATION
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2017 2016 2016
GBP'000 GBP'000 GBP'000
Current taxation charge 795 926 2,256
Deferred taxation charge/(credit) 252 (273) (145)
----------- ----------- -----------
Total income statement tax charge 1,047 653 2,111
----------- ----------- -----------
7 EARNINGS PER SHARE
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
Number of shares 2017 2016 2016
Weighted average number of shares
during the period ('000 shares):
- Basic 104,570 103,614 103,944
- Dilutive effect of options 4,001 3,028 3,361
- Diluted 108,571 106,642 107,305
Basic earnings per share (in
pence) 1.4p 1.2p 3.3p
Adjusted basic earnings per share
(in pence) 4.2p 3.4p 8.8p
Diluted earnings per share (in
pence) 1.4p 1.2p 3.2p
Adjusted diluted earnings per
share (in pence) 4.0p 3.3p 8.5p
----------- ----------- -----------
The adjustments have the following
effect:
Basic earnings per share 1.4p 1.2p 3.3p
Amortisation of intangible assets 3.0p 2.4p 5.3p
Share based payments 0.6p 0.5p 1.1p
Exceptional items 0.1p - 1.0p
Tax effect of the above adjustments (0.9p) (0.7p) (1.9p)
----------- ----------- -----------
Adjusted basic earnings per share 4.2p 3.4p 8.8p
----------- ----------- -----------
Diluted earnings per share 1.4p 1.2p 3.2p
Amortisation of intangible assets 2.8p 2.3p 5.1p
Share based payments 0.6p 0.5p 1.0p
Exceptional items 0.1p - 1.0p
Tax effect of the above adjustments (0.9p) (0.7p) (1.8p)
----------- ----------- -----------
Adjusted diluted earnings per
share 4.0p 3.3p 8.5p
----------- ----------- -----------
8 DIVID
On 12 December 2016 a final dividend in respect of the year ended 31 July 2016 of GBP1,470,000 (1.4p per share) (2015: GBP1,042,000 (1.0p per share)) was paid to shareholders. No interim dividend is proposed in respect of the period (2016: GBPnil).
9 GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT
Other Property,
intangible plant and
Goodwill assets equipment
GBP'000 GBP'000 GBP'000
Carrying amount at 31 July 2015 35,793 10,352 2,973
Additions:
Separately acquired - 1,085 322
Internally developed - 1,147 -
Amortisation and depreciation - (2,580) (400)
Disposals - - -
Net exchange differences 3,023 445 196
--------- ----------- ----------
Carrying amount at 31 January
2016 38,816 10,449 3,091
Additions:
Separately acquired - 1,440 681
Internally developed - 1,408 -
Amortisation and depreciation - (2,987) (419)
Disposals - - (7)
Net exchange differences 3,585 429 222
Carrying amount at 31 July 2016 42,401 10,739 3,568
Additions:
Separately acquired - 1,571 383
Internally developed - 1,405 -
Amortisation and depreciation - (3,116) (566)
Disposals - - -
Net exchange differences 1,783 297 160
--------- ----------- ----------
Carrying amount at 31 January
2017 44,184 10,896 3,545
--------- ----------- ----------
In accordance with the Group's accounting policy, the carrying values of goodwill and other intangible assets are reviewed for impairment at each balance sheet date. A full impairment test is undertaken at each financial year end and a review for indicators of impairment is undertaken at the end of each interim period and an impairment test undertaken if required. The last full annual impairment review was undertaken as at 31 July 2016. The loss incurred in Asia Pacific is considered to be an indicator of impairment, therefore an impairment test in respect of the goodwill and other intangible assets relating to the Asia Pacific business unit was undertaken as at 31 January 2017 based on updated forecasts. After considering reasonable possible changes in key assumptions and performing sensitivity analysis, the review showed that sufficient headroom existed between the carrying value of goodwill and other intangible assets relating to the Asia Pacific business unit and the net present value of future cash flows derived from those assets, and therefore these assets are deemed not to be impaired.
9 GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT (continued)
Other intangible assets are analysed as follows:
Software Customer Patents
Consumer and software contracts and trade- Develop-ment
panel develop-ment and lists marks costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Carrying amount
at 31 July 2015 2,197 5,589 1,849 466 251 10,352
Additions:
Separately acquired 871 189 - 3 22 1,085
Internally developed - 1,147 - - - 1,147
Total additions 871 1,336 - 3 22 2,232
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations - (62) (235) (89) - (386)
Separately acquired (687) (359) - (1) (70) (1,117)
Internally developed - (1,074) - - (3) (1,077)
Total Amortisation (687) (1,495) (235) (90) (73) (2,580)
--------- -------------- ----------- ------------ ------------- --------
Net exchange differences 138 118 153 23 13 445
--------- -------------- ----------- ------------ ------------- --------
Carrying amount
at 31 January
2016 2,519 5,548 1,767 402 213 10,449
Reclassifications - 80 - - (80) -
Additions:
Separately acquired 1,108 202 - 46 84 1,440
Internally developed - 1,408 - - - 1,408
Total additions 1,108 1,610 - 46 84 2,848
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations - (66) (230) (80) - (376)
Separately acquired (887) (213) - (2) (96) (1,198)
Internally developed - (1,416) - - 3 (1,413)
Total Amortisation (887) (1,695) (230) (82) (93) (2,987)
--------- -------------- ----------- ------------ ------------- --------
Net exchange differences 174 93 130 25 7 429
--------- -------------- ----------- ------------ ------------- --------
Carrying amount
at 31 July 2016 2,914 5,636 1,667 391 131 10,739
Additions:
Separately acquired 1,364 190 - 17 - 1,571
Internally developed - 1,405 - - - 1,405
Total additions 1,364 1,595 - 17 - 2,976
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations - (109) (281) (87) - (477)
Separately acquired (1,052) (214) - (2) (44) (1,312)
Internally developed - (1,327) - - - (1,327)
Total Amortisation (1,052) (1,650) (281) (89) (44) (3,116)
--------- -------------- ----------- ------------ ------------- --------
Net exchange differences 106 86 95 7 3 297
--------- -------------- ----------- ------------ ------------- --------
Carrying amount
at 31 January
2017 3,332 5,667 1,481 326 90 10,896
--------- -------------- ----------- ------------ ------------- --------
10 SHARE CAPITAL
Share
Number of capital
shares GBP'000
At 31 January 2016 104,260,531 209
Issue of shares 38,521 -
At 31 July 2016 104,299,052 209
Issue of shares 730,514 1
------------ --------
At 31 January 2017 105,029,566 210
------------ --------
The company has only one class of share. The par value of each share is 0.2p. All issued shares are fully paid. Shares issued in the year were in respect of the exercise of 648,447 share options at nil cost per share and 82,067 share options at GBP1.645 per share.
11 FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Where market values are not available, fair values of financial assets and financial liabilities have been calculated by discounting expected future cash flows at prevailing interest rates and by applying year end foreign exchange rates.
Primary financial instruments held or issued to finance the Group's operations:
31 January 2017 31 January 2016
Unaudited Unaudited
Book value Fair value Book value Fair value
GBP'000 GBP'000 GBP'000 GBP'000
Trade and other receivables 29,304 29,304 24,303 24,303
Cash and cash equivalents 14,997 14,997 10,140 10,140
Trade and other payables (17,269) (17,269) (12,270) (12,270)
---------------- ----------- ---------------- -----------
Fair value estimation
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
-- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
-- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
31 January 2017 31 January 2016
Unaudited Unaudited
Level Level Level Total Level Level Level Total
Liabilities 1 2 3 1 2 3
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Contingent consideration - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
The following table presents the changes in Level 3 instruments.
Unaudited Unaudited
6 months to 6 months to
31 January 31 January
Contingent consideration 2017 2016
GBP'000 GBP'000
Balance at 1 August - 36
Recognised in the income statement - (36)
Balance at 31 January - -
------------- ------------
12 TRANSACTIONS WITH DIRECTORS AND OTHER RELATED PARTIES
During the period, YouGov provided GBP170,000 of research services to SMG Insight Limited and was charged GBP20,000 for research services by SMG Insight Limited. As at 31 January 2017, GBP163,000 was receivable from SMG Insight Limited in respect of these services and GBP11,000 was payable.
As at 31 January 2017, Rosamund Shakespeare, the wife of Stephan Shakespeare, held 559,404 ordinary shares in the Company.
Other than emoluments, there were no other transactions with Directors during the period.
Trading between YouGov plc and group companies is excluded from the related party note as this has been eliminated on consolidation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DQLFLDXFLBBK
(END) Dow Jones Newswires
March 27, 2017 02:00 ET (06:00 GMT)
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