YouGov reports 'robust' first-half performance
By Josh White
Date: Tuesday 21 Mar 2023
(Sharecast News) - Research and analytics provider YouGov reported robust financial results for its first half on Tuesday, with revenue growth of 30% to £131.4m, surpassing last year's 28% growth.
The AIM-traded company attributed the performance to its strong underlying business growth of 13%, outpacing the industry average.
Its adjusted operating profit rose 58% to £22.1m for the six months ended 31 January, with underlying business growth of 32%.
The firm credited that to ongoing improvements in business efficiencies and operational leverage benefits.
YouGov's adjusted operating profit margin expanded by 300 basis points to 17%, which the board said demonstrated margin expansion even as it continued to invest in its business for future growth.
Statutory operating profit surged 89% to £20.4m, up from £10.8 million in the prior-year period.
Adjusted earnings per share also improved, registering an 81% increase to 19.2p.
YouGov said its balance sheet remained strong, with a net cash position of £41.4m at period end, making for a significant increase from the £20.1m reported at the end of January last year.
Looking ahead, the company said its sales pipeline remained healthy, supported by continued investment in technological capabilities and international expansion.
YouGov noted that, although there had been some slowdown in client decision-making on discretionary spending, it was still seeing large strategic opportunities in key markets without any material changes in client behaviour.
"YouGov delivered a strong performance in the first half of our financial year, against a difficult macro environment," said chief executive officer Stephan Shakespeare.
"In line with our strategy, top-line growth momentum has continued across all geographic segments, and we achieved significant margin expansion and good cash generation during the period.
"Our demand environment remains robust with increasingly sticky, long-term relationships with existing customers, and growing opportunities for multi-year contracts and trackers with new customers."
Shakespeare said that sales momentum had continued into the second half, giving it confidence that YouGov could achieve top-line growth for the full year in line with current market expectations.
"As we approach the final stretch of our current long-term strategic growth plan, I am more confident than ever that we are investing in the right areas to realise the full potential of our business."
At 1430 GMT, shares in YouGov were up 1.69% at 905p.
Reporting by Josh White for Sharecast.com.
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