YouGov upbeat on strong full-year growth
By Josh White
Date: Tuesday 11 Oct 2022
(Sharecast News) - Research and data analysis firm YouGov reported revenue growth of 31% in its full-year results on Tuesday, or 20% on an underlying basis, to £221.1m, with double-digit growth across all of its divisions and geographies.
The AIM-traded company said adjusted operating profit was ahead 42%, or an underlying 33%, to £36.3m, as business efficiencies and operational leverage benefits started to filter through.
Its adjusted operating profit margin rose 130 basis points to 16.4%, despite the business making "continued investment".
YouGov reported a statutory operating profit of £30m for the 12 months ended 31 July, up 58% year-on-year, while adjusted earnings per share were 9% higher at 23.7p, impacted by adverse foreign exchange movements.
The company described "strong" cash conversion of 113%, up from 98% in the 2021 financial year, enabling repayment of its £20m revolving credit facility drawn in the first half of the period.
Its board said the firm's "robust" balance sheet position was maintained, with net cash at the end of the year standing at £37.4m, up from £35.5m a year earlier, and no outstanding debt.
Looking ahead, YouGov said trading for the new financial year - the last in its current long-term strategic growth plan - had started "well" across all divisions, with continued growth in revenue.
No material changes in client behaviour had been experienced to date, but the board said it was cognisant of the broader ongoing macroeconomic environment, and would continue to monitor the company's performance as it progressed through its upcoming contract renewal season with customers.
The group said it had a "good level" of revenue visibility through longer-term contracts, with over a third of the FYP2 revenue target for 2023 already secured.
It said that model proved "highly resilient" in a period of macroeconomic instability during the Covid-19 pandemic.
As a result, the directors said they remained "cautiously optimistic" on the group's prospects for the 2023 period, and aimed to maintain the strong sales momentum seen over the last 12 months.
"Building on the momentum we saw towards the end of 2021, YouGov has delivered another year of strong performance in 2022 against an uncertain macroeconomic backdrop," said chief executive officer Stephan Shakespeare.
"Our growth in the reported year has continued to accelerate, and we achieved further margin improvement and robust cash generation during the period.
"Demand for YouGov's products and services remains strong and we continue to win new clients while expanding our relationships with existing clients."
As a result, Shakespeare said the company was "cautiously optimistic" on its prospects for the year, as it aimed for further growth.
"We continue to invest in our market-leading technology and platform and remain laser-focused in delivering on our long-term strategy to realise the full potential of our business and drive shareholder value."
At 1513 BST, shares in YouGov were down 2.74% at 797.5p.
Reporting by Josh White at Sharecast.com.
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