TIDMYOU
RNS Number : 4159K
YouGov PLC
22 April 2020
22 April 2020
YouGov plc
("YouGov" or the "Group")
Half-year results for the six months to 31 January 2020
Strong earnings growth in line with the second five-year
plan
YouGov plc (LSE: YOU) the international research and data
analytics group, today announces its results for the six months to
31 January 2020. This follows the trading update issued on 24 March
2020 in lieu of the results in accordance with guidance published
by the Financial Conduct Authority and the Financial Reporting
Council.
Summary of Results
Unaudited Unaudited Change Audited
six months six months % full year
to to to
31 January 31 January 31 July
2020 2019 (restated)(2) 2019 (restated)(2)
GBPm GBPm GBPm
------------ -------------------- ------- --------------------
Revenue 76.9 66.5 16% 136.5
------------ -------------------- ------- --------------------
Adjusted EBITDA 18.6 14.7 27% 31.7
------------ -------------------- ------- --------------------
Adjusted Operating Profit(1) 11.4 8.4 35% 18.5
------------ -------------------- ------- --------------------
Adjusted Operating Profit
Margin (%)(1) 15% 13% 2p.p. 14%
------------ -------------------- ------- --------------------
Adjusted Profit before Tax(1) 12.1 9.5 27% 20.4
------------ -------------------- ------- --------------------
Adjusted Earnings per Share(1) 8.7p 6.4p 35% 14.8p
------------ -------------------- ------- --------------------
Statutory Operating Profit 9.5 8.4 13% 20.0
------------ -------------------- ------- --------------------
Statutory Profit before Tax 9.2 8.2 13% 19.4
------------ -------------------- ------- --------------------
Statutory Basic Earnings per
Share (p) 6.2p 5.4p 16% 14.1p
------------ -------------------- ------- --------------------
1 Defined in the explanation of non-IFRS measures on page
13.
2 As of the current financial year the Group is required to
apply IFRS 16: Leases and has elected to restate the comparative
periods to ensure the results presented provide a clear picture of
trading performance.
Financial highlights
-- Revenue growth of 16% (HY 2019: 18%), with underlying business(3) growth of 15%
-- Adjusted operating profit(1) up by 35% to GBP11.4m (HY 2019:
GBP8.4m), with underlying business(3) growth of 34%
-- Adjusted profit before tax(1) up by 27% to GBP12.1m (HY 2019: GBP9.5m)
-- Adjusted earnings per share(1) up by 35% to 8.7p (HY 2019: 6.4p)
-- Adjusted operating profit margin(1) up 2 percentage points (p.p.) to 15% (HY 2019: 13%)
-- Statutory operating profit up 13% to GBP9.5m (HY 2019: GBP8.4m)
-- Strong cash conversion of 93%
-- Cash balances of GBP27.2m (31 January 2019: GBP25.0m)
3 Defined as growth in business excluding impact of current and
prior period acquisitions and movement in exchange rates .
Operational highlights
-- Data Products & Services revenue up by 17% to GBP43.4m
(17% from underlying business(3) ); now representing 55% of total
revenue (HY 2019: 54%):
o Data Products revenue increased by 29% (27% from underlying
business(3) ) to GBP25.1m
o Data Services revenue increased by 3% (7% from underlying
business(3) ) to GBP18.3m, offset by restructuring in the Nordics,
non-recurring election work in Asia Pacific and soft performance in
Germany
-- Custom Research revenue increased by 12% to GBP33.9m (11% from underlying business(3) ):
o Continued strategic focus on higher margin work resulted in a
19% increase in operating profit to GBP8.0m
-- US remains the largest driver with adjusted operating profit increasing by 20% to GBP9.3m
-- Further investment in building and developing our panels in
Australia, India, Italy, Mexico, Poland, Spain and Taiwan
Current trading and outlook
-- Trading during the second half of our financial year (1
February to 31 July 2020) has started positively and is in line
with Board expectations for the full year
-- To date, we have not yet seen any material impact to our business from the COVID-19 pandemic
-- Notwithstanding the current macro-economic situation, our
pipeline of sales opportunities for our syndicated Data Products
remains strong with more opportunities for growth in Custom
Research
-- Continued investment in strategic initiatives, e.g. roll-out
of YouGov Direct across further geographies
-- We are seeing a small minority of existing clients requesting
payment deferrals or cancellations which we are handling on a
case-by-case basis
-- Given the unprecedented nature of this pandemic it is
difficult to estimate its impact on our clients and their financial
stability going forward. Therefore, we consider it prudent to
anticipate that this situation could cause clients to delay
projects, default or request longer payment terms, as well as a
slowdown in some business wins.
-- We continue to closely monitor this fluid situation and its
potential impact on our pipeline over the coming months and into
our next financial year which commences on 1 August 2020
Responding to COVID-19 and supporting our stakeholders
-- With strong cash balances and no debt, we are confident of
YouGov's resilience to endure the period of uncertainty. We have
taken and will continue to take all the necessary actions to
protect our business and people
-- The health and safety of our people is of paramount
importance. At the time of writing all 38 YouGov offices are closed
with our entire workforce working from home
-- No current intention to furlough any employees or apply for any Government loans or grants
-- Being an online company, we have an established culture of
remote and flexible working. Consequently, our clients continue to
receive business as usual service, and we are well-positioned to
maintain this continuity of service during this period
-- Prudent cost reviews and contingency planning undertaken
-- We continue to closely monitor the rapidly evolving situation in order to respond accordingly
-- We understand the importance of accurate and easily accessible data and insights during these unprecedented times. To support the healthcare research community and public health bodies across the world, we have partnered with the Institute of Global Health Innovation at Imperial College London to gather global insights on people's behaviours and opinions in response to COVID-19, with the data being freely available for public health researchers
-- We have also developed the YouGov COVID-19 Monitor for our
commercial clients to help provide key consumer and social
insights, including market and sector impact and health compliance,
across 29 markets
Post-period highlights
-- Strategic multi-year contract signed with a large
international financial services company based in Germany
-- Launched YouGov Recommend+, an NPS and brand tracking service
making full use of YouGov's data assets
-- Panel expansion underway to include Austria, Brazil, Switzerland and Turkey
-- Aforementioned partnership with Imperial College London and
launch of the YouGov COVID-19 Monitor
Stephan Shakespeare, Chief Executive, said:
"YouGov turns 20 this year and I am confident of the Company's
resilience during this period of macro-economic and social
uncertainty. We meet the new challenges posed by the COVID-19
pandemic from a position of strength, with a robust business model,
strong balance sheet and skilled employees who continue to provide
our clients with valuable opinions and consumer insights across
their markets. YouGov data is an important tool for our clients at
this time, helping them to understand and respond to rapidly
changing consumer and social sentiment.
Trading during the second half of our financial year has started
positively and is in line with Board expectations for the full
year. We are yet to see any material impact to our business from
the global outbreak of COVID-19 and we continue to monitor the
situation closely."
Analyst presentation
A copy of the presentation will be available online at
https://corporate.yougov.com/investors/presentations/ shortly after
the half-year results announcement is live on the Regulatory News
Service (RNS).
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.
Enquiries:
YouGov plc
Stephan Shakespeare / Alex McIntosh 020 7012 6000
FTI Consulting
Charles Palmer / Elena Kalinskaya
/ Leah Dudley 020 3727 1000
Numis Securities Limited (NOMAD and
broker)
Nick Westlake / Matt Lewis / Hugo
Rubinstein 020 7260 1000
Chief Executive Officer's Review
We are pleased to report that in the six months to 31 January
2020, YouGov has achieved strong underlying revenue growth, and
significant growth in profitability materially ahead of the
market(1) . Once again we have demonstrated the strength of our
position as a market leader in providing our clients with the
valuable opinion, profiling and behavioural data and consumer
insights to help them plan, develop and evaluate the impact of
their marketing and communications activities.
1 According to the ESOMAR Global Market Research Report
published in September 2019, global research market turnover grew
by 2.1% in 2018 (or by -0.3% after inflationary effects are
factored in).
Factors contributing to this strong performance include:
-- Core and growth geographies: Strong performance in our core
UK market and growing presence and authority in the US market where
our electoral predictions and YouGov BrandIndex data continue to
become more widely recognised as a valuable source of public
perception.
-- Data Products: Our high margin Data Products division
continues to perform well, with further integration of new products
through acquisitions serving specific vertical end-markets such as
sports.
-- Recent Acquisition: As announced in January, we ended the SMG
Insight earn-out ahead of schedule as the business was exceeding
its targets and we saw clear advantage from speedier integration
with the wider sales and marketing effort, leveraging the position
sports sponsorship now plays in many corporate marketing
strategies.
-- Superior technology: Our proprietary technology supporting
the scalable nature of the syndicated data model.
Strategic Direction - second five-year plan
We have made a strong start to our next five-year strategic
growth plan in this reporting period. As previously announced, the
ambitious long-term incentive plan ("LTIP") performance targets to
incentivise senior management through to 2023 are:
-- Double group revenue
-- Double group adjusted operating profit margin(2)
-- Achieve an adjusted earnings per share(2) compound annual growth rate in excess of 30%
2 Defined in the explanation of non-IFRS measures on page
13.
We are making good progress towards these goals in what we have
designated as the investment phase of the long-term growth plan. In
this phase we are continuing to invest in our technologies,
platforms, support functions and markets to enable us to scale
further and make the most of the opportunities we see in our
markets. To take this performance to the next level, we are
continuing to focus on three strategic pillars: Data Integration,
Ethical Activation and Public Value.
Strong execution against our three strategic pillars
Data Integration
Data quality is become an ever-greater issue in our industry.
The market's current concerns focus around three themes:
-- Accuracy - can the data be relied upon to reflect the reality
of consumer decisions? Do trends in the data reflect trends and
outcomes in the actual market?
-- Depth - do we learn enough about how people live, think and
behave to understand the 'whole customer'?
-- Connectedness - this concern is still not so clearly
understood by many in the market, but we believe that connectedness
is an emerging strength in YouGov's unique data structure. Can
different aspects of a person's life be effectively analysed
together? People often talk about 'connected data', but YouGov is
unique in the range, reliability and genuine connectedness that
exists from all our data having a single source - our global panel
- and being organised into our connected data library the YouGov
Cube.
It is the combination of these three qualities - accuracy, depth
and true single-source connectedness - that allows effective
prediction and activation. This is what we mean by the 'data
integration' pillar of our strategy.
That data integration is made especially powerful by our
cloud-based analytics platform, Crunch, which allows large data
sets to be analysed easily and quickly and means that we can now
take on much larger and more complex tracking studies. We recently
won a very significant multi-country tracking study for one of
Germany's largest and most admired financial services companies
because of the degree to which our technology has transformed data
gathering, processing and analysis. Our approach for this client is
being partly productised as the new offering YouGov Recommend+, in
which the base data and its engineering is syndicated, while the
add-on data and analysis is custom.
Ethical Activation
Citizens' control of their own data has become a major issue
recently, and the technology is being developed by YouGov (and many
others) to enable people to control and share their data. In our
new platform, YouGov Direct, members are able to add, edit or
delete profiling data that we have collected on them, and to
specify the terms under which each individual piece of information
can be used to generate value for them. For each use of their data,
a receipt is automatically generated on our blockchain which they
can view on their account page.
The uses for YouGov Direct which will expand over the next years
will make it a platform in the true business-model definition:
"enabling value-creating interactions between external producers
and consumers [by providing] an open, participative infrastructure
for these interactions... [and setting] governance conditions for
them." (Platform Revolution, Parker, Van Alstyne and Choudary,
2016). Not only corporate and academic clients, but anyone with a
credit card, will be able to view and use the data of our members
directly, and commission new data, without being mediated by us
(except for client verification and enforcement of the terms and
conditions of the platform regarding data exchange and use) and
still with our members' identity being kept private. High-quality
self-service research is at one end of the range of uses, and
ethical activation of advertising and individualised services is at
the other end.
YouGov Direct is currently available in limited release with
selected clients in the UK and US, with other countries following
soon. As recently announced, Ted Marzilli, who led YouGov's Data
Products global business unit for the past 10 years, has been
appointed as YouGov Direct CEO to lead the delivery to market. We
will update on the progress made in six months' time.
Public Value
Part of YouGov's mission is to make the data we collect from the
public valuable to the public.
All our syndicated data is made available on a website that
makes it easy to search and use. The publication is in a form that
freely delivers the value of the data at a level that is meaningful
to the public, with the detail that matters only to marketers being
behind the paywall. YouGov Ratings is one example of this approach,
which is already gaining traction, being freely referenced by the
media as well as the public.
We are planning to bring a rich variety of YouGov data and
services to life for the public in a new website dedicated to the
US Presidential Election that will be soft-launched in June 2020
and will grow throughout the campaign. It will have more data,
interactive MRP-driven maps, and our InConvo chat-bot engaging
visitors in a deep personal exploration of the content. This use of
our data not only gives value back to the public, but also
effectively markets membership of our panel and the uniqueness of
our products and features.
Focus on operations
As a platform, both in the technological sense and the
business-model sense, we need to be more efficient, smarter,
faster, and 24/7. This is why we have been expanding the role of
our shared service centres geographically, by adding Toronto in
addition to the existing centres in Bucharest, Mumbai, and most
recently Bangalore, as well as broadening the range of services,
while also upgrading the technical capability (which is why we are
now calling them Centres of Excellence, or CenX). They will support
excellence in all parts of our business as well as improving
operating effectiveness, with an always-on help desk for our
syndicated products and self-service platform, and the ability to
launch custom surveys at any time. This model integrates with our
sales and marketing matrix, to which we are adding a new layer of
account management to drive more sophisticated
client-centricity.
We are continuing to expand the geographic range of panels,
adding Austria, Brazil, Switzerland and Turkey within this calendar
year, driven, in part, by clients of our global tracking
capability.
Responding to COVID-19 and supporting our stakeholders
We currently have our entire global workforce working from home
due to the pandemic. Being an online company with a limited supply
chain and disparate operations and an established culture of remote
and flexible working, we are well-positioned to maintain continuity
of service to our clients during this period. YouGov's organisation
is structured by global lines of business, with various teams
across operating seamlessly across geographies. The ability to work
remotely is inherent in the way we do business and we have shown
how well prepared we were to implement this in a more pronounced
way and to continue our business as usual. YouGov currently has no
plans to furlough any staff, nor to apply for government loans or
grants to support the continued operation of our business.
Our commercial response has included the launch of the YouGov
COVID-19 Monitor, tracking people's behaviours and opinions
relating to the pandemic across 29 markets. We have partnered with
the Institute of Global Health Innovation at Imperial College
London to provide such data to public health researchers for
free.
Current trading and outlook
Trading during the second half (1 February to 31 July 2020)
started positively, and the Board remains confident of achieving
profit expectations for the full year despite the macro-economic
uncertainty. We have a strong pipeline of sales opportunities for
our syndicated Data Products and continue to see opportunities for
growth in Custom Research which is aligned with our syndicated Data
Products offer.
We have not seen any material impact to sales from the global
outbreak of COVID-19, but we continue to closely monitor this fluid
situation and its potential impact on our pipeline over the coming
months and into our next financial year which commences on 1 August
2020. With strong cash balances and no debt, we are confident of
YouGov's resilience in the face of any weakening client demand. In
the short term the Group will maintain a strong cash position and
is not expecting significant issues in cash collection from
clients. We are seeing a small minority of existing clients
requesting payment deferrals or cancellations which we handling on
a case-by-case basis. Looking further ahead, we consider it prudent
to anticipate that some of our clients will be impacted. In the
event the disruption caused by COVID-19 prolongs, there is the risk
that some clients may delay projects, default or request longer
payment terms, and of slowdown in new business wins. In light of
the uncertainty and risks, we have undertaken contingency planning
and cost reviews.
As a final point, I would like to note that this year we
celebrate the 20th Anniversary of the founding of YouGov and have
reached a truly global footprint. On behalf of the Board and
Shareholders, I would like to thank all our panellists, partners
and clients, and in particular our employees, for their
contribution and commitment to YouGov's ongoing success.
Stephan Shakespeare
Chief Executive Officer
22 April 2020
Chief Financial Officer's Review
The six months to 31 January 2020 is the first trading period
after the successful completion of the Groups first five-year plan.
In the period, we have continued to focus on higher margin and
scalable sales across all parts of the Group while continuing to
invest for future growth.
Total Group revenue rose to GBP76.9m in the period, compared to
GBP66.5m in the six months to 31 January 2019. Underlying growth
was 15% (but 16% in reported terms due to the depreciation of Pound
Sterling against US Dollar and the full year impact of
acquisitions) since the prior period.
In line with our strategy, a higher proportion of sales coming
from higher margin products and services increased gross margins by
2 percentage points to 84%. Adjusted operating margins increased
from 13% to 15%.
Group operating costs (excluding separately reported items) of
GBP53.4m (HY 2019: GBP46.2m) increased by 16% in reported terms,
and 15% in constant currency terms. Group adjusted operating profit
(excluding separately reported items) increased to GBP11.4m (35%
growth in the period) with strong continued growth in Data
Products, coupled with revenue and margin improvement in the Custom
Research business. The statutory operating profit (which is after
charging other separately reported items of GBP1.8m) increased to
GBP9.5m (HY 2019: GBP8.4m).
Technology investment and global expansion
The Group invested GBP3.5m (HY 2019: GBP2.7m) in the continuing
development of our technology platform and increased the investment
in panel recruitment at GBP4.2m (HY 2019: GBP2.2m) to support
continued global expansion. Our investment in technology continued
across three main areas: websites and mobile applications, survey
systems, and our data analytics tool, Crunch. GBP0.6m (HY 2019:
GBP2.2m) was spent on the purchase of property, plant and
equipment, resulting in a total investment in fixed assets of
GBP8.3m (HY 2019: GBP7.1m). Other cash outflows included GBP7.4m of
deferred consideration payments, taxation payments of GBP1.7m (HY
2019: GBP2.0m) and the annual shareholder dividend payment of
GBP4.3m (2019: GBP3.2m) in December 2019.
Investing activities in the period included GBP7.4m of deferred
consideration payments for prior period acquisitions. The Group is
expecting GBP13.2m of deferred consideration payable in respect of
future earn-outs attached to acquisitions. International expansion
was supported by further investment in building and developing our
panels in Australia, India, Italy, Mexico, Poland, Spain and
Taiwan. These investments enabled us to broaden our international
research capability in these important markets.
There was a net cash outflow of GBP8.3m in the period, compared
to GBP5.7m in the six months to 31 January 2019. Cash balances of
GBP27.2m were GBP2.2m higher than at 31 January 2019
(GBP25.0m).
Amortisation of intangible assets and central costs
Amortisation charges for intangible assets totalled GBP5.0m in
the period (2019: GBP4.1m) of which GBP0.7m (2019: GBP0.7m) related
to assets acquired through business combinations, GBP2.1m (2019:
GBP2.0m) to separately acquired assets and GBP2.2m (2019: GBP1.4m)
to internally generated assets.
Central Costs have increased by GBP0.4m, reflecting the
underlying growth of the business and investment in YouGov Direct
and the Affiliate partner programme.
Profit before tax and earnings per share
Adjusted profit before tax of GBP12.1m was an increase of
GBP2.6m (or 27%) on the comparable result of GBP9.5m for the six
months to 31 January 2019. The adjusted tax rate decreased from 28%
to 26%. Statutory profit before tax increased by 13% to GBP9.2m
compared to GBP8.2m in the six months ended 31 January 2019.
During the period adjusted earnings per share grew by 35% from
6.4p to 8.7p and statutory earnings per share grew by 16% from 5.4p
to 6.2p.
Performance by Product and Service
Data Products
Our syndicated data products suite includes YouGov BrandIndex,
YouGov Profiles and YouGov SportsIndex. YouGov Plan & Track
(the combined BrandIndex and Profiles proposition) is available in
24 countries (2019: 21). BrandIndex alone is available in 42
countries (2019: 40), while SportsIndex is available in 38
countries (2019: 38).
The performance of our Data Products division has contributed
significantly to our Group revenue and adjusted operating profit.
Revenue from Data Products increased by 29% (27% growth in
underlying terms) in the period. The adjusted operating profit from
Data Products increased by 43% to GBP8.5m and the operating margin
increased by 3 percentage points to 34%.
Geographically, the US remains the largest Data Products market
and grew by 27% in in the period, (24% from the underlying
business). The UK, France and Asia Pacific also contributed strong
revenue growth of 30%, 18% and 33% respectively.
Data Services
Our Data Services division consists of our fast-turnaround
research services, including our market-leading YouGov Omnibus.
In the period, revenue from Data Services increased by 3% (7% in
underlying terms) to GBP18.3m. Performance in the period was
affected by restructuring in the Nordics, non-recurring Election
work in Asia Pacific and subdued performance in Germany. The focus
on the US market (13% increase in reported revenue) and further
territorial expansion has helped the division expand the revenue
base beyond the core UK market.
The weaker revenue growth and increased investment contributed
to a decrease of 16% in the Data Services operating profit to
GBP2.8m and the operating margin declined from 19% to 15%.
Custom Research
Our Custom Research division includes tailored research projects
and tracking studies.
During the period, the business revenue grew by 12% in reported
terms and by 11% in underlying terms to GBP33.9m. Adjusted
operating profit increased by 19% to GBP8.0m and the operating
margin improved by 2 percentage points to 24%. This was largely due
to revenue growth in the UK (20% increase) and US (13% increase)
focused on higher margin project work.
Revenue Six months Six months Revenue Underlying
to to growth business(1)
31 Jan 31 Jan % revenue
2020 2019 (restated) change
GBPm GBPm %
---------------------- ----------- ----------------- -------- -------------
Data Products 25.1 19.4 29% 27%
----------- ----------------- -------- -------------
Data Services 18.3 17.8 3% 7%
----------- ----------------- -------- -------------
Total Data Products
& Services 43.4 37.2 17% 17%
----------- ----------------- -------- -------------
Custom Research 33.9 30.4 12% 11%
----------- ----------------- -------- -------------
Intra-group Revenues (0.4) (1.1) - -
----------- ----------------- -------- -------------
Group 76.9 66.5 16% 15%
----------- ----------------- -------- -------------
1 Defined as growth in business excluding impact of current and
prior period acquisitions and movement in exchange rates .
Adjusted Operating Profit(1) Six months Six months Operating Operating Margin
to to Profit
31 Jan 31 Jan growth
2020 2019 (restated) %
GBPm GBPm
------------------------------ ----------- ----------------- ---------- ----------------------------
Six months Six months
to to
31 Jan 2020 31 Jan 2019
(restated)
------------------------------ ----------- ----------------- ---------- ------------- -------------
Data Products 8.5 5.9 43% 34% 31%
----------- ----------------- ---------- ------------- -------------
Data Services 2.8 3.3 (16%) 15% 19%
----------- ----------------- ---------- ------------- -------------
Total Data Products
& Services 11.3 9.2 22% 26% 25%
----------- ----------------- ---------- ------------- -------------
Custom Research 8.0 6.7 19% 24% 22%
----------- ----------------- ---------- ------------- -------------
Central Costs (7.9) (7.5) - - -
----------- ----------------- ---------- ------------- -------------
Group 11.4 8.4 35% 15% 13%
----------- ----------------- ---------- ------------- -------------
1 Defined in the explanation of non-IFRS measures on page
13.
Performance by Geography
Revenue Six months Six months Revenue Underlying
business(1)
to to growth / revenue
(reduction)
31 Jan 2020 31 Jan 2019 % change %
(restated)
GBPm GBPm
UK 23.6 19.8 19% 19%
------------ ------------ ------------- ------------
USA 32.1 27.2 18% 17%
------------ ------------ ------------- ------------
Mainland Europe 11.7 12.1 (3%) (1%)
------------ ------------ ------------- ------------
Middle East 5.8 5.3 10% 8%
------------ ------------ ------------- ------------
Asia Pacific 6.0 5.2 15% 14%
------------ ------------ ------------- ------------
Intra-group Revenues (2.3) (3.1) - -
------------ ------------ ------------- ------------
Group 76.9 66.5 16% 15%
------------ ------------ ------------- ------------
1 Defined as growth in business excluding impact of current and
prior period acquisitions and movement in exchange rates .
Adjusted Operating Six months Six months Operating Operating Margin
Profit(1) to to Profit growth
31 Jan 2020 31 Jan 2019 %
GBPm (restated)
GBPm
-------------------- ------------- ------------- --------------- ----------------------------
Six months Six months
to to
31 Jan 2020 31 Jan 2019
(restated)
-------------------- ------------- ------------- --------------- ------------- -------------
UK 7.8 5.6 41% 33% 28%
------------- ------------- --------------- ------------- -------------
USA 9.3 7.7 20% 29% 28%
------------- ------------- --------------- ------------- -------------
Mainland Europe 0.9 1.6 (45%) 8% 14%
------------- ------------- --------------- ------------- -------------
Middle East 1.7 1.8 (8%) 29% 35%
------------- ------------- --------------- ------------- -------------
Asia Pacific 0.0 (0.1) (144%) 1% (2%)
------------- ------------- --------------- ------------- -------------
Central Costs (8.3) (8.2) - - -
------------- ------------- --------------- ------------- -------------
Group 11.4 8.4 35% 15% 13%
------------- ------------- --------------- ------------- -------------
1 Defined in the explanation of non-IFRS measures on page
13.
Panel Development
We continue to invest in our online panel to increase our
research capabilities, both in new geographies and specialist
panels. At 31 January 2020, the total number of registered
panellists had increased to 9.6 million, compared to 7.4 million at
31 January 2019, as set out in the table below.
Region Panel size at Panel size at
31 January 2020 31 January 2019
UK 1,797,500 1,522,400
---------------- ----------------
Americas 3,700,700 2,710,800
---------------- ----------------
Europe 1,373,400 1,078,800
---------------- ----------------
Middle East 1,153,700 1,010,200
---------------- ----------------
Asia Pacific 1,570,300 1,098,200
---------------- ----------------
Total 9,595,600 7,420,400
---------------- ----------------
Explanation of Non-IFRS measures
Financial Measure How we define it Why we use it
Separately reported Items that in the Directors' Provides a more comparable
items judgement are one-off basis to assess the
or need to be disclosed year-to-year operational
separately by virtue business performance
of their size or incidence and is how our performance
is reviewed internally
------------------------------ ----------------------------
Adjusted operating Operating profit excluding
profit separately reported items
------------------------------ ----------------------------
Adjusted operating Adjusted operating profit
profit margin expressed as a percentage
of revenue
------------------------------
Adjusted EBITDA Adjusted operating profit
before depreciation and
amortisation
------------------------------
Adjusted profit Profit before tax before
before tax share based payment charges,
imputed interest and
separately reported items
------------------------------ ----------------------------
Adjusted taxation Taxation due on the adjusted Provides a more comparable
profit before tax, excluding basis to assess the
the tax effect of separately underlying tax rate
reported 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 interests
parent
------------------------------ ----------------------------
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 prior revenue change by
year revenue in local eliminating the impact
currency translated at of foreign exchange
the current year average rate movements
exchange rates
------------------------------ ----------------------------
Cash conversion The ratio of cash generated Indicates the extent
from operations to adjusted to which the business
EBITDA generates cash from
adjusted EBITDA
------------------------------ ----------------------------
Reconciliation of Non-IFRS measures
Adjusted Operating Profit(1) Six months Six months % Change
to to
31 Jan 2020 31 Jan 2019
GBPm (restated)
GBPm
Statutory operating profit 9.5 8.4 13%
------------ ------------ --------
Separately reported items 1.9 -
------------ ------------ --------
Adjusted operating profit(1) 11.4 8.4 35%
------------ ------------ --------
Adjusted EBITDA(1) Six months Six months % Change
to to
31 Jan 2020 31 Jan 2019
GBPm (restated)
GBPm
Adjusted operating profit 11.4 8.4 35%
------------ ------------ --------
Depreciation 2.2 2.2
------------ ------------ --------
Amortisation 5.0 4.1
------------ ------------ --------
Adjusted EBITDA(1) 18.6 14.7 27%
------------ ------------ --------
Adjusted Profit Before Six months Six months % Change
Tax(1) to to
31 Jan 2020 31 Jan 2019
GBPm (restated)
GBPm
Statutory profit before
tax 9.2 8.2 13%
------------ ------------ --------
Separately reported items 1.9 -
------------ ------------ --------
Share based payments 0.9 1.2
------------ ------------ --------
Imputed interest 0.1 0.1
------------ ------------ --------
Adjusted profit before
tax(1) 12.1 9.5 27%
------------ ------------ --------
1 Defined in the explanation of non-IFRS measures on page
13.
YOUGOV PLC
STATEMENT OF DIRECTORS' RESPONSIBILITiES
For the six months ended 31 January 2020
The directors confirm that these condensed interim financial
statements have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months 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
and any material changes in the related-party transactions
described in the last annual report.
The Board of Directors of YouGov plc are:
-- Roger Parry - Non-Executive Chair
-- Rosemary Leith - Non-Executive Director
-- Andrea Newman - Non-Executive Director
-- Ashley Martin - Non-Executive Director
-- Stephan Shakespeare - Chief Executive Officer
-- Alex McIntosh - Chief Financial Officer
-- Sundip Chahal - Chief Operating Officer
By order of the Board:
Alex McIntosh
Chief Financial Officer
22 April 2020
YOUGOV PLC
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 January 2020
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2020 2019 2019
(restated) (restated)
Note GBP'000 GBP'000 GBP'000
Revenue 3 76,929 66,544 136,487
Cost of Sales (12,163) (11,931) (24,206)
----------- ----------- -----------
Gross profit 64,766 54,613 112,281
Administrative expenses (55,238) (46,166) (92,260)
----------- ----------- -----------
Operating profit 3 9,528 8,447 20,021
----------------------------------------- ----- ----------- ----------- -----------
Separately reported items 4 (1,847) 34 1,529
----------- ----------- -----------
Adjusted operating profit(1) 11,375 8,413 18,492
----------------------------------------- ----- ----------- ----------- -----------
Share of post-tax losses in joint
ventures - (37) (52)
Finance income 172 234 255
Finance costs (504) (470) (868)
Profit before taxation 9,196 8,174 19,356
Taxation 5 (2,901) (2,522) (5,086)
----------- ----------- -----------
Profit after taxation 6,295 5,652 14,270
----------- ----------- -----------
Attributable to:
Equity holders of the parent
company 6,590 5,652 14,869
Minority interests (295) - (599)
6,295 5,652 14,270
----------- ----------- -----------
Earnings per share
Basic earnings per share attributable
to equity holders of the company 6 6.2p 5.4p 14.1p
Diluted earnings per share attributable
to equity holders of the company 6 5.9p 5.0p 13.1p
1 Defined in the explanation of non-IFRS measures on page
13.
YOUGOV PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 January 2020
Unaudited Unaudited Audited
6 months 6 months
to to Year ended
31 January 31 January 31 July
2020 2019 2019
(restated) (restated)
GBP'000 GBP'000 GBP'000
Profit for the period 6,295 5,652 14,270
Other comprehensive income
Item that may be subsequently reclassified
to profit or loss
Currency translation differences (5,281) (1,196) 4,890
Other comprehensive income for
the year (5,281) (1,196) 4,890
----------- ----------- -----------
Total comprehensive income for
the period 1,014 4,456 19,160
----------- ----------- -----------
Attributable to:
Equity holders of the parent company 1,305 4,456 19,759
Minority interests (291) - (599)
Total comprehensive income for
the period 1,014 4,456 19,160
----------- ----------- -----------
Items in the statement above are disclosed net of tax.
YOUGOV PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the six months ended 31 January 2020
Unaudited Unaudited Audited
31 January 31 January 31 July
2020 2019 (restated) 2019 (restated)
Assets Note GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 8 63,590 62,518 65,637
Other intangible assets 8 19,046 16,525 16,737
Property, plant and equipment 8 4,035 4,525 4,424
Right of use assets 8 9,299 11,456 10,529
Deferred tax assets 8,623 9,559 11,207
----------- ----------------- -----------------
Total non-current assets 104,593 104,583 108,534
----------- ----------------- -----------------
Current assets
Trade and other receivables 31,875 34,573 33,726
Current tax assets 2,436 517 930
Cash and cash equivalents 27,168 24,953 37,925
----------- ----------------- -----------------
Total current assets 61,479 60,043 72,581
----------- ----------------- -----------------
Total assets 166,072 164,626 181,115
----------- ----------------- -----------------
Liabilities
Current liabilities
Trade and other payables 36,419 31,850 40,041
Contingent consideration 1,629 6,181 2,791
Provisions 5,460 4,060 4,931
Current lease liabilities 2,508 2,925 2,891
Current tax liabilities 987 1,164 741
Total current liabilities 47,003 46,180 51,395
----------- ----------------- -----------------
Net current assets 14,476 13,863 21,186
----------- ----------------- -----------------
Non-current liabilities
Contingent consideration 2,323 9,837 7,279
Provisions 4,472 4,184 4,623
Long term lease liabilities 7,251 9,053 8,217
Deferred tax liabilities 2,012 2,188 2,158
----------- ----------------- -----------------
Total non-current liabilities 16,058 25,262 22,277
----------- ----------------- -----------------
Total liabilities 63,061 71,442 73,672
----------- ----------------- -----------------
Net assets 103,011 93,184 107,443
----------- ----------------- -----------------
Equity
Issued share capital 9 217 211 211
Share premium 31,345 31,300 31,345
Merger reserve 9,239 9,239 9,239
Treasury share reserve (1,700) - (3,738)
Foreign exchange reserve 14,636 13,835 19,921
Retained earnings 50,123 38,560 51,023
-------- ------- --------
Total shareholders' funds 103,860 93,145 108,001
Non-controlling interests
in equity (849) 39 (558)
-------- ------- --------
Total equity 103,011 93,184 107,443
-------- ------- --------
The accompanying accounting policies and notes form an integral
part of this financial information.
Alex McIntosh
Chief Financial Officer
22 April 2020
YOUGOV PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 January 2020
Attributable to equity holders of
the Company
----------------------------------------------------------
Treasury Foreign
Share Share Merger share exchange Retained Non-controlling
capital premium reserve reserve reserve earnings Total interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------- -------- -------- -------- -------- -------- -------- --------------- ----------
Balance at 1 August
2018 as reported 211 31,300 9,239 - 15,031 35,549 91,330 - 91,330
Change in accounting
policy (Note 11) - - - - - (383) (383) - (383)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Restated total
equity
at 1 August 2018 211 31,300 9,239 - 15,031 35,166 90,947 - 90,947
Period to 31 January
2019 (restated)
Exchange differences
on translating
foreign
operations - - - - (1,196) - (1,196) - (1,196)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Net gain recognised
directly in equity - - - - (1,196) - (1,196) - (1,196)
Profit for the
period - - - - - 5,652 5,652 - 5,652
------- -------- -------- -------- -------- -------- -------- --------------- --------
Total comprehensive
income for the
period - - - - - 5,652 4,456 - 4,456
------- -------- -------- -------- -------- -------- -------- --------------- --------
Issue of shares - - - - - - - 39 39
Dividends paid - - - - - (3,167) (3,167) - (3,167)
Share-based payments - - - - - 1,220 1,220 - 1,220
Tax in relation to
share
based payments - - - - - (311) (311) - (311)
Total transactions
with
owners recognised
directly
in equity - - - - - (2,258) (2,258) 39 (2,219)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Balance at 31
January
2019 (restated) 211 31,300 9,239 - 13,835 38,560 93,145 39 93,184
Period to 31 July
2019
(restated)
Exchange differences
on translating
foreign
operations - - - - 6,086 - 6,086 - 6,086
------- -------- -------- -------- -------- -------- -------- --------------- --------
Net income
recognised
directly in equity - - - - 6,086 - 6,086 - 6,086
Profit/(loss) for
the
period - - - - - 9,217 9,217 (599) 8,618
------- -------- -------- -------- -------- -------- -------- --------------- --------
Total comprehensive
income for the
period - - - - 6,086 9,217 15,303 (599) 14,704
------- -------- -------- -------- -------- -------- -------- --------------- --------
Issue of shares - 45 - - - - 45 2 47
Dividends paid - - - - - - - - -
Share-based payments - - - - - 1,181 1,181 - 1,181
Tax in relation to
share
based payments - - - - - 2,065 2,065 - 2,065
Acquisition of
treasury
shares - - - (3,738) - - (3,738) - (3,738)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Total transactions
with
owners recognised
directly
in equity - 45 - (3,738) - 3,246 (447) 2 (445)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Balance at 31 July
2019
(restated) 211 31,345 9,239 (3,738) 19,921 51,023 108,001 (558) 107,443
Period to 31 January
2020
Exchange differences
on translating
foreign
operations - - - - (5,285) - (5,285) 4 (5,281)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Net income
recognised
directly in equity - - - - (5,285) - (5,285) 4 (5,281)
Profit for the
period - - - - - 6,590 6,590 (295) 6,295
------- -------- -------- -------- -------- -------- -------- --------------- --------
Total comprehensive
income for the
period - - - - (5,285) 6,590 1,305 (291) 1,014
------- -------- -------- -------- -------- -------- -------- --------------- --------
Issue of shares 6 - - (5) - (1) - - -
Dividends paid - - - - - (4,298) (4,298) - (4,298)
Share-based payments - - - - - 908 908 - 908
Tax in relation to
share
based payments - - - - - 358 358 - 358
(Acquisition)/award
of treasury shares - - - 2,043 - (4,457) (2,414) - (2,414)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Total transactions
with
owners recognised
directly
in equity 6 - - 2,038 - (7,490) (5,446) - (5,446)
------- -------- -------- -------- -------- -------- -------- --------------- --------
Balance at 31
January
2020 217 31,345 9,239 (1,700) 14,636 50,123 103,860 (849) 103,011
------- -------- -------- -------- -------- -------- -------- --------------- --------
YOUGOV PLC
CONSOLIDATED CASHFLOW STATEMENT
For the six months ended 31 January 2020
Unaudited Unaudited Audited
6 months Year ended
to
6 months 31 January 31 July
to
31 January 2019 (restated) 2019 (restated)
2020 (restated) (restated)
GBP'000 GBP'000 GBP'000
Profit before taxation 9,196 8,174 19,356
Adjustments for:
Finance income (172) (234) (255)
Finance costs 504 470 868
Share of post-tax losses in joint
ventures - 37 52
Amortisation 5,004 4,135 8,809
Depreciation 2,266 2,160 4,396
Share based payments 908 1,220 2,401
(Profit)/loss on disposal of
property, plant and equipment (28) 5 6
Other non-cash operating profit
(gains)/losses 831 (1,052) (3,245)
Decrease/(Increase) in trade and
other receivables 229 (1,814) 714
(Decrease)/Increase in trade and
other payables (2,222) (3,390) 3,969
Increase in provisions 756 444 1,348
----------- ---------------- ----------------
Cash generated from operations 17,272 10,155 38,419
Interest paid (127) (159) (304)
Income taxes paid (1,691) (1,891) (4,521)
----------- ---------------- ----------------
Net cash generated from operating
activities 15,454 8,105 33,594
Cash flow from investing activities
Acquisition of subsidiaries (net
of cash acquired) - (217) (228)
Settlement of deferred consideration (7,448) - (4,520)
Purchase of business - (2,063) (2,063)
Proceeds from sale of property, 38 - -
plant and equipment
Purchase of property, plant and
equipment (585) (2,186) (2,713)
Purchase of intangible assets (7,714) (4,875) (9,453)
Interest received 172 68 211
Net cash used in investing activities (15,537) (9,273) (18,766)
----------- ---------------- ----------------
Cash flows from financing activities
Proceeds from the issue of share
capital - - 86
Principal elements of lease payments (1,491) (1,372) (2,844)
Dividends paid to company's shareholders (4,298) (3,167) (3,167)
Dividends paid to minority shareholders - 39 -
Purchase of treasury shares (2,414) - (3,738)
Net cash used in financing activities (8,203) (4,500) (9,663)
----------- ---------------- ----------------
Net (decrease)/increase in cash
and cash equivalents (8,286) (5,668) 5,165
Cash and cash equivalents at beginning
of period 37,925 30,621 30,621
Exchange (loss)/gain on cash and
cash equivalents (2,471) - 2,139
----------- ---------------- ----------------
Cash and cash equivalents at end
of period 27,168 24,953 37,925
----------- ---------------- ----------------
YOUGOV PLC
notes to the CONDENSED consolidated interim financial
statements
For the six months ended 31 January 2020
1 GENERAL INFORMATION
YouGov plc and subsidiaries' (the 'Group') principal activity is
the provision of market research, opinion polling and data
analytics.
YouGov plc is the Group's ultimate parent company. It is
incorporated and domiciled in the United Kingdom. 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 condensed 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 of YouGov plc
(the 'Board') on 22 April 2020.
This condensed consolidated interim financial information for
the six months ended 31 January 2020 does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 July 2019 were
approved by the Board on 8 October 2019 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 condensed consolidated financial
statements of the Group for the year ended 31 July 2019 are
available from the Company's registered office or website
(https://corporate.yougov.com/).
This condensed consolidated interim financial information is
unaudited and not reviewed by the auditors.
2 BASIS OF PREPARATION
This condensed consolidated interim report for the six months
ended 31 January 2020 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 condensed consolidated interim report
should be read in conjunction with the annual financial statements
for the year ended 31 July 2019, which has been prepared in
accordance with IFRS's as adopted by the European Union.
Accounting policies
The following amendments to standards and interpretations have
been adopted for the first time for the financial year beginning on
1 August 2019:
IFRS 16, 'Leases': This standard replaces the current guidance
in IAS 17, under which lessees were required to make a distinction
between a finance lease (on balance sheet) and an operating lease
(off-balance sheet). IFRS 16 now requires lessees to recognise a
lease liability reflecting future lease payments and a
"right-of-use asset" for virtually all lease contracts. This is
effective for accounting periods beginning after 1 January 2019 and
therefore applies for the year commencing 1 August 2019.
Accounting policies (continued)
Once a lease is identified the initial value of the liability
and right of use asset must be calculated. The lease liability
consists of the present value of the lease payments that are not
paid at the commencement date. Future lease payments are discounted
using the interest rate implicit in the lease or, If that rate
cannot be readily determined, the incremental borrowing rate.
Variable lease payments that are tied to an external rate, such as
the retail price index, are measured using the rate at the
commencement date.
The right of use asset comprises the lease liability value plus
any lease payments made at or before the commencement date, less
any lease incentives received. Initial direct costs incurred and
any restoration provisions required under the terms of the lease
are also included in the asset value calculation.
Subsequently the lease liability balance is reduced to reflect
any payments made in the period and increased as interest is
accrued on the remaining balance. The right of use asset is
depreciated in a straight line over the life of the lease
agreement. The depreciation element is recognised within
administrative expenses while the interest expense is recognised
within finance costs.
If modifications to the terms of a lease result in a change to
the expected future payments the lease liability is remeasured to
reflect the discounted value of the revised payments. The change is
recognised as an adjustment to the right of use asset. If the
carrying amount of the asset is reduced to zero and there is a
further reduction in the measurement of the lease liability, any
remaining amount of the remeasurement is recognised in the income
statement.
The following lease types are exempt from the lease model:
i) leases with a duration of twelve months or under;
ii) leases for which the underlying asset is of a low value
Payments relating to leases falling under either of these
categories are recognised as an expense on a straight-line basis
over the lease term.
IFRS 16 will be applied retrospectively to each prior reporting
period presented. The impact of the first time adoption of this new
standard is shown in Note 11.
Other than the above the accounting policies applied are
consistent with those of the Annual Financial Statements for the
year ended 31 July 2019, as described in those Annual Financial
Statements .
Restatement of prior period balances
At the close of the previous financial year management applied a
provision for impairment to the accrued income balance in
accordance with IFRS 9. Under the transitional provisions in
paragraphs 7.2.15 and 7.2.26 of the standard the opening
Consolidated Statement of Financial Position also required
restating.
The total provision at 1 August 2018 amounted to GBP136,000 and
this amount was included in the restatement of opening balances. As
the provision was made at the close of the year it had not been
included in the restatements disclosed in the interim condensed
consolidated financial statements for the previous financial year.
As a result the comparative Consolidated Statement of Financial
Position as at 31 January 2019 has been restated to reflect this
change reducing trade and other receivables by GBP136,000,
increasing deferred tax assets by GBP30,000 and decreasing retained
earnings by GBP106,000.
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 Group is required to determine appropriate incremental
borrowing rates to calculate the financing element of leases under
IFRS 16. The estimated rates combined the base rates quoted to the
Group by its principal banking providers and the LIBOR rates from
the relevant geographies at the time of adoption.
Other than the above the significant estimates and judgements
made by management were consistent with those applied to the
consolidated financial statements for the year ended 31 July
2019.
3 SEGMENTAL ANALYSIS
The Board of Directors (which is the 'chief operating decision
maker') primarily reviews information based on product lines,
Custom Research, Data Products and Data Services, with supplemental
geographical information.
Intra-group
revenues
Custom / Central
Research Data Products Data Services Costs Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six months to
31 January 2020 (Unaudited)
Revenue
Recognised over time 13,464 24,579 292 410 38,745
Recognised at a point
in time 20,483 516 18,053 (868) 38,184
------------ ---------
Total revenue 33,947 25,095 18,345 (458) 76,929
Cost of sales (6,621) (2,071) (2,817) (654) (12,163)
---------- -------------- -------------- ------------ ---------
Gross profit 27,326 23,024 15,528 (1,112) 64,766
Administrative expenses (19,337) (14,523) (12,756) (6,775) (53,391)
---------- -------------- -------------- ------------ ---------
Adjusted operating profit/(loss) 7,989 8,501 2,772 (7,887) 11,375
Separately reported items (1,847)
---------
Operating profit 9,528
Share of post-tax losses -
in associates
Finance income 172
Finance costs (504)
---------
Profit before taxation 9,196
Taxation (2,901)
---------
Profit after taxation 6,295
---------
Other segment information
Depreciation and amortisation 404 238 - 6,628 7,270
---------- -------------- -------------- ------------ ---------
3 SEGMENTAL ANALYSIS (continued)
Intra-group
revenues
Custom / Central
Research Data Products Data Services Costs Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six months to
31 January 2019 (restated)
(Unaudited)
Revenue
Recognised over time 9,494 19,148 324 (187) 28,779
Recognised at a point
in time 20,864 254 17,495 (848) 37,765
Total revenue 30,358 19,402 17,819 (1,035) 66,544
Cost of sales (7,278) (2,151) (3,416) 914 (11,931)
---------- -------------- -------------- ------------ ---------
Gross profit 23,080 17,251 14,403 (121) 54,613
Administrative expenses (16,395) (11,302) (11,103) (7,400) (46,200)
---------- -------------- -------------- ------------ ---------
Adjusted operating profit/(loss)
(restated) 6,685 5,949 3,300 (7,521) 8,413
Exceptional items 34
---------
Operating profit 8,447
Share of post-tax profits
in associates (37)
Finance income 234
Finance costs (470)
---------
Profit before taxation 8,174
Taxation (2,522)
---------
Profit after taxation 5,652
---------
Other segment information
Depreciation and amortisation 99 62 - 6,134 6,295
---------- -------------- -------------- ------------ ---------
Supplementary information by geography
Six months to 31 Six months to 31
January 2020 (Unaudited) January 2019 (restated)
(Unaudited)
Adjusted Adjusted
operating operating
Revenue profit/(loss) Revenue profit/(loss)
GBP'000 GBP'000 GBP'000 GBP'000
UK 23,639 7,827 19,818 5,545
USA 32,090 9,266 27,190 7,715
Mainland Europe 11,667 902 12,080 1,638
Middle East 5,847 1,692 5,320 1,843
Asia Pacific 5,963 40 5,184 (90)
Intra-group revenues
/ Central Costs (2,277) (8,352) (3,048) (8,238)
---------- ---------------- --------- ----------------
Group 76,929 11,375 66,544 8,413
---------- ---------------- --------- ----------------
4 SEPARATELY REPORTED ITEMS
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2020 2019 2019
GBP'000 GBP'000 GBP'000
Acquisition related costs 1,847 1,998 382
Restructuring costs - 63 146
Fair value gains on business
combinations - (2,095) (2,057)
Total separately reported items 1,847 (34) (1,529)
----------- ----------- -----------
Acquisition related costs in the period comprise GBP1,102,000 of
contingent consideration treated as staff costs in respect of the
acquisitions of SMG Insight Limited, Galaxy Research Pty Limited,
InConversation Media Limited and Portent.io Limited and GBP745,000
of changes in the previously estimated consideration due and net
assets acquired in respect of SMG Insight Limited.
Acquisition related costs in the prior period comprise
GBP1,240,000 of contingent consideration treated as staff costs in
respect of the acquisitions of Galaxy Research Pty Ltd,
InConversation Media Limited and Portent.io Limited and GBP758,000
of transaction costs in respect of the Acquisitions of
InConversation Media Limited, Portent.io Limited and the purchase
of Crunch.io Inc's share of the Crunch software asset, GBP222,000
of which is contingent.
Restructuring costs in the prior period are residual costs
relating to the restructuring of the Custom Research business in
Germany and the closure of the Reports business.
Fair value gains in the prior period comprise of a GBP1,878,000
increase in the fair value assessment of the Group's 20%
shareholding in SMG Insight Limited prior to acquisition and a
bargain purchase gain of GBP285,000 less a fair value loss of
GBP68,000 in respect of the acquisition of Portent.io Limited.
5 TAXATION
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
2020 2019 (restated) 2019 (restated)
GBP'000 GBP'000 GBP'000
Current taxation charge 509 2,923 4,629
Deferred taxation (credit)/charge 2,392 (401) 457
----------- ---------------- ----------------
Total income statement tax charge 2,901 2,522 5,086
----------- ---------------- ----------------
The tax charge for the period has been calculated based on the
expected tax rates for the full year in each country.
6 EARNINGS PER SHARE
Unaudited Unaudited Audited
6 months 6 months Year ended
to to
31 January 31 January 31 July
Number of shares 2020 2019 (restated) 2019 (restated)
Weighted average number of shares
during the period ('000 shares):
- Basic 105,689 105,528 105,400
- Dilutive effect of options 6,856 7,884 7,865
----------- ---------------- ----------------
- Diluted 112,545 113,412 113,265
----------- ---------------- ----------------
Basic earnings per share (in
pence) 6.2p 5.4p 14.1p
Adjusted basic earnings per share
(in pence) 8.7p 6.4p 14.8p
Diluted earnings per share (in
pence) 5.9p 5.0p 13.1p
Adjusted diluted earnings per
share (in pence) 8.2p 6.0p 13.8p
----------- ---------------- ----------------
The adjustments have the following
effect:
Basic earnings per share 6.2p 5.4p 14.1p
Share based payments 0.9p 1.1p 2.3p
Imputed interest 0.1p 0.1p 0.2p
Separately reported items 1.7p - (1.5p)
Tax effect of the above adjustments
and adjusting tax items (0.2p) (0.2p) (0.3p)
----------- ---------------- ----------------
Adjusted basic earnings per share 8.7p 6.4p 14.8p
----------- ---------------- ----------------
Diluted earnings per share 5.9p 5.0p 13.1p
Share based payments 0.8p 1.0p 2.1p
Imputed interest 0.1p 0.1p 0.2p
Separately reported items 1.6p - (1.3p)
Tax effect of the above adjustments
and adjusting tax items (0.2p) (0.1p) (0.3p)
----------- ---------------- ----------------
Adjusted diluted earnings per
share 8.2p 6.0p 13.8p
----------- ---------------- ----------------
7 DIVID
On 16 December 2019 a final dividend in respect of the year
ended 31 July 2019 of GBP4,298,000 (4.0p per share) (2019:
GBP3,167,000 (3.0p per share)) was paid to shareholders. No interim
dividend is proposed in respect of the period (2019: GBPnil).
8 GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE ASSETS
Other Property, Right
Intangible plant and of use
Goodwill assets equipment assets
GBP'000 GBP'000 GBP'000 GBP'000
Carrying amount at 31
July 2018 (restated) 52,060 13,297 3,037 5,419
Additions:
Business combinations 10,801 2,498 5 -
Separately acquired - 2,572 2,186 7,532
Internally developed - 2,303 - -
Amortisation and depreciation - (4,135) (697) (1,463)
Disposals - - (5) -
Foreign exchange differences (343) (10) (1) (32)
--------- ------------ ----------- --------
Carrying amount at 31
January 2019 (restated) 62,518 16,525 4,525 11,456
Additions:
Business combinations 387 - - -
Separately acquired - 2,075 527 294
Internally developed - 2,503 - -
Amortisation and depreciation - (4,674) (783) (1,453)
Disposals - - (1) -
Foreign exchange differences 2,732 308 156 232
--------- ------------ -----------
Carrying amount at 31
July 2019 (restated) 65,637 16,737 4,424 10,529
Additions:
Business combinations - - - -
Separately acquired - 4,858 585 519
Internally developed - 2,856 - -
Amortisation and depreciation - (5,004) (798) (1,468)
Disposals - - (10) -
Foreign exchange differences (2,047) (401) (166) (281)
--------- ------------ ----------- --------
Carrying amount at 31
January 2020 63,590 19,046 4,035 9,299
--------- ------------ ----------- --------
In accordance with the Group's accounting policy, the carrying
values of goodwill and other intangible assets are reviewed for
impairment annually. 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 2019. There were no indications of
impairment as at 31 January 2020.
8 GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT AND
RIGHT OF USE ASSETS (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
2018 4,474 6,032 2,471 272 48 13,297
Additions:
Business combinations 10 2,488 - - - 2,498
Separately acquired 2,168 376 - 28 - 2,572
Internally developed - 2,303 - - - 2,303
Total additions 2,178 5,167 - 28 - 7,373
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations (1) (373) (294) - - (668)
Separately acquired (1,519) (507) - (3) - (2,029)
Internally developed - (1,438) - - - (1,438)
Total Amortisation (1,520) (2,318) (294) (3) - (4,135)
--------- -------------- ----------- ------------ ------------- --------
Foreign exchange differences (23) 13 (1) 1 - (10)
--------- -------------- ----------- ------------ ------------- --------
Carrying amount at 31 January
2019 5,109 8,894 2,176 298 48 16,525
Additions:
Business combinations - - - - - -
Separately acquired 1,784 291 - - - 2,075
Internally developed - 2,503 - - - 2,503
Total additions 1,784 2,794 - - - 4,578
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations (2) 286 (289) - - (5)
Separately acquired (1,707) 197 - (8) - (1,518)
Internally developed - (3,151) - - - (3,151)
Total Amortisation (1,709) (2,668) (289) (8) - (4,674)
--------- -------------- ----------- ------------ ------------- --------
Reclassification - 48 - - (48) -
--------- -------------- ----------- ------------ ------------- --------
Foreign exchange differences 268 (1) 38 3 - 308
--------- -------------- ----------- ------------ ------------- --------
Carrying amount at 31 July
2019 5,452 9,067 1,925 293 - 16,737
Additions:
Separately acquired 4,195 644 - 19 - 4,858
Internally developed - 2,856 - - - 2,856
Total additions 4,195 3,500 - 19 - 7,714
--------- -------------- ----------- ------------ ------------- --------
Amortisation:
Business combinations - (413) (274) - - (687)
Separately acquired (1,876) (248) - (2) - (2,126)
Internally developed - (2,191) - - - (2,191)
Total Amortisation (1,876) (2,852) (274) (2) - (5,004)
--------- -------------- ----------- ------------ ------------- --------
Foreign exchange differences (353) - (52) 4 - (401)
--------- -------------- ----------- ------------ ------------- --------
Carrying amount at 31 January
2020 7,418 9,715 1,599 314 - 19,046
--------- -------------- ----------- ------------ ------------- --------
9 SHARE CAPITAL
Share
Number of capital
shares GBP'000
At 31 January 2019 105,587,220 211
Issue of shares 122,783 -
At 31 July 2019 105,710,003 211
Issue of shares 2,687,221 6
------------ --------
At 31 January 2020 108,397,224 217
------------ --------
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 2,687,221 share options
at 0.2p per share. A total of 415,000 shares were repurchased for
the purposes of settling share option schemes as they vest.
10 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 2020 31 January 2019 (restated)
Unaudited Unaudited
Book value Fair value Book value Fair value
GBP'000 GBP'000 GBP'000 GBP'000
Trade and other receivables 27,987 27,987 30,476 30,476
Cash and cash equivalents 27,168 27,168 24,953 24,953
Trade and other payables (37,760) (37,760) (50,066) (50,066)
---------------- ----------- --------------------------- -----------
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 2020 31 January 2019
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 - - 3,952 3,952 - - 16,018 16,018
------- ------- ------- ------- ------- ------- ------- -------
10 FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
The following table presents the changes in Level 3
instruments.
Unaudited Unaudited
6 months to 6 months to
31 January 31 January
Contingent consideration 2020 2019
GBP'000 GBP'000
Balance at 1 August 10,070 6,519
Provided consideration on business combination - 7,958
Recognised in the income statement within separately reported items 1,346 1,462
Recognised in the income statement within finance costs 40 77
Settled during the period (7,448) -
Foreign exchange differences (56) 2
------------ ------------
Balance at 31 January 3,952 16,018
------------ ------------
11 IMPACT OF NEW ACCOUNTING STANDARDS
This note explains the impact of the adoption of IFRS 16,
'Leases' on the Group's financial statements.
IFRS 16 replaces IAS 17 and is applicable to all reporting
periods beginning on or after 01 January 2019. The standard
provides a single lessee accounting model, requiring lessees to
recognise right-of-use assets and liabilities for all leases, with
some exemptions for short term leases and leases considered
low-value, GBP741,000 (2019: GBP462,000) of rental expense has been
recognised in the period in respect of these exempted leases. IFRS
16 applies only to tangible assets.
Impact on the financial statements
The adoption of IFRS 16 from 1 August 2019 resulted in changes
in accounting policies and adjustments to the amounts recognised in
the financial statements. The impact of the change in lease
accounting on the group's Consolidated Income Statement and
Consolidated Statement of Financial Position for the comparative
financial year and half-year is disclosed in the tables below. Line
items that were not affected by the changes have not been included.
The impact on deferred taxation has not been calculated as it is
not considered material.
Unaudited Unaudited
6 months to 6 months to
31 January 31 January
2019 Impact of 2019
Reported IFRS 16 Restated
GBP'000 GBP'000 GBP'000
Operating profit items
Depreciation expense 698 1,462 2,160
Other operating expenses 45,537 (1,531) 44,006
---------------- --------------- ---------------
Total operating expenses 46,235 (69) 46,166
Other Income Statement items
Finance costs 311 159 470
---------------- --------------- ---------------
11 IMPACT OF NEW ACCOUNTING STANDARDS (CONTINUED)
Audited Unaudited
Year to Year to
31 July 31 July
2019 Impact of 2019
Reported IFRS 16 Restated
GBP'000 GBP'000 GBP'000
Operating profit items
Depreciation expense 1,481 2,915 4,396
Other operating expenses 90,983 (3,119) 87,864
--------------- --------------- ---------------
Total operating expenses 92,464 (204) 92,260
Other Income Statement items
Finance costs 564 304 868
--------------- --------------- ---------------
Unaudited Unaudited
31 January 31 January
2019 Impact of 2019
Reported IFRS 16 Restated
GBP'000 GBP'000 GBP'000
Consolidated Statement of Financial Position items
Right of use assets - 11,456 11,456
Lease liabilities due within one year - 2,925 2,925
Lease liabilities due after one year - 9,053 9,053
Foreign exchange reserve 13,884 (49) 13,835
Retained earnings 39,033 (473) 38,560
----------- --------------- ---------------
Audited Audited
31 July 31 July
2019 Impact of 2019
Reported IFRS 16 Restated
GBP'000 GBP'000 GBP'000
Consolidated Statement of Financial Position items
Right of use assets - 10,529 10,529
Lease liabilities due within one year - 2,891 2,891
Lease liabilities due after one year - 8,217 8,217
Foreign exchange reserve 20,018 (97) 19,921
Retained earnings 51,507 (484) 51,023
--------- --------------- ---------------
11 IMPACT OF NEW ACCOUNTING STANDARDS (CONTINUED)
The impact on the opening Consolidated Statement of Financial
Position as of 1 August 2018 is disclosed in the table below. Line
items that were not affected by the changes have not been
included.
1 August 1 August
2018 Impact of 2018
Reported IFRS 16 Restated
GBP'000 GBP'000 GBP'000
Statement of Financial Position items
Right of use assets - 5,419 5,419
Lease liabilities due within one year - 2,151 2,151
Lease liabilities due after one year - 3,651 3,651
Retained earnings 91,330 (383) 90,947
--------- ---------- ---------
12 TRANSACTIONS WITH DIRECTORS AND OTHER RELATED PARTIES
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.
13 EVENTS AFTER THE REPORTING PERIOD
The extent of the COVID-19 pandemic only became apparent after
the balance sheet date and represents a non-adjusting post-balance
sheet event.
To date, we have not yet seen any material impact to our
business from the COVID-19 pandemic. Notwithstanding the current
macro-economic situation, our pipeline of sales opportunities for
our syndicated Data Products remains strong, with more
opportunities for growth in Custom Research. We are seeing a small
minority of existing clients requesting payment deferrals or
cancellations which we are handling on a case-by-case basis. We
continue to review for any impact on valuations of goodwill,
intangibles and other assets but there is no basis as of yet for
any impairment.
At the present time all 38 YouGov offices are closed with our
entire global workforce working from home. YouGov has a
long-established culture of remote and flexible working;
consequently, we are well-positioned to maintain continuity of
service during this period and our clients continue to receive
business as usual service.
Given the unprecedented nature of the pandemic it is difficult
to estimate its impact on our clients and their financial stability
going forward. Therefore, we consider it prudent to anticipate that
this situation could cause clients to delay projects, default or
request longer payment terms, as well as a slowdown in some
business wins. We continue to closely monitor this fluid situation
and its potential impact on our pipeline over the coming months and
into our next financial year which commences on 1 August 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR MZGZDRMLGGZM
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