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YouGov profits rocket on strong US and UK performances
AIM-quoted market research and data firm YouGov saw profits soar in the first half of its trading year thanks to a strong showing in the US and back home in the UK.
YouGov saw adjusted pre-tax profits stand up 69% to £10.7m in the six months ended 31 January, thanks in part to a 10% year-on-year pick-up in revenues to £56.3m.
Revenue at home rose 15% to £14.5m, and 18% across the pond to £23.3m, as operating profit in the regions rose 89% to £5.8m and 56% to £7.9m, respectively.
YouGov stated that its five-year growth plan, originally laid out in 2015, was progressing well, with its two key aims of increasing the amount of revenue received from its higher-margin data products and services segments and improve profit margins over at its custom division, were on track to be realised, as data products services revenue accounted for 49% of group revenue over the period, up from the 32% it made up in the year before the plan was launched.
Margins in its customer research wing had more-than-doubled over the period also, up to 24% from the 11% posted at the end of the 2014 trading year.
YouGov, however, did slip up in the German, Nordics, Middle Eastern markets, with adjusted operating profit falling 33% in Germany after revenue dropped 15%, and Nordic adjusted operating profit lost 34% despite revenue moving up 7%.
In the Middle East, adjusted operating profit rose 14%, but revenues fell 20%.
YouGov said the drop was a result of the firm exiting businesses across the regions during the period, as well as enacting its restructuring programmes.
Company boss Stephan Shakespeare, said, "We continue to deliver to the goals we set out in our five-year plan, and as we move into the penultimate year of that plan we are on track for delivering growth well ahead of our industry.
"By increasing our investment in technology we are getting more out of our data engine and our profit is growing at a higher rate. We have enjoyed a particularly strong first half. Trading during the second half has continued positively, we are accelerating our investment in technology and geographic expansion and remain confident in our prospects for the year."
Earnings per share came in at 7.3p per ordinary share, a significant improvement on the prior year's figure of 4.2p.
As of 1550 GMT, shares had grown 3.68% to 378.42p.