YouGov board confident after record first half

The AIM-traded firm said its adjusted operating profit grew 33% to £14m for the six months ended 31 December, with underlying business growth on that measure coming in at 36%.

Adjusted profit before tax was ahead 12% at £15.4m, and adjusted earnings per share rose 10% to 10.6p.

YouGov said its adjusted operating profit margin was 50 basis points higher year-on-year, at 13.8%.

Statutory operating profit came in at £10.8m, up 45%, while the board described “strong” cash conversion of 120%, up from 92% a year earlier, enabling its continued investment in the business.

Its “robust” balance sheet position was maintained, with net cash at period end totalling £20.1m, compared to £27.5m at the end of January.

A new revolving credit facility was signed during the period, with an initial drawdown of £20m.

Looking ahead, YouGov said its second half had started “positively”, with sales momentum continuing to build for its data products and research services, with existing and new clients resulting in increased visibility.

Investment in its panel, technology and platform would be maintained at a similar level to the prior year, the board said, to ensure it capitalised on market opportunities.

Current trading remained “slightly ahead” of board expectations for the full year.

“YouGov delivered a record performance in the first half of the current financial year,” said chief executive officer Stephan Shakespeare.

“In addition to accelerated and broad-based growth, we achieved sustained profitability and strong cash generation as we continued to focus on driving long-term shareholder value in line with our strategy.

“Demand for YouGov's products and services remains strong and we continue to win new clients while expanding relations with existing ones.”

Shakespeare said that gave the company “good momentum” going into the second half, with management “confident” it would end the year slightly ahead of the board's expectations.

“We continue to invest in our business to ensure we are able to harness the power of our technology and take advantage of the significant global opportunities so we can realise the long-term potential of our business.”

At 1156 GMT, shares in YouGov were up 6.49% at 1,214p.