Shares in YouGov surge on positive outlook
By Abigail Townsend
Date: Tuesday 29 Oct 2024
(Sharecast News) - Shares in YouGov surged on Tuesday, after the polling specialist posted a jump in full-year revenues and said it was on track to meet its 2025 guidance.
The firm, which warned in June that profits and revenues would miss expectations this year, said revenues in the year to 31 July rose 30%, or by 3% on an underlying basis, to £335.3m.
That was higher than its summer forecast for revenues of between £324m and £327m.
It attributed the better-than-expected performance to a higher contribution from Consumer Panel Services, after a greater level of research was delivered in July. The acquisition of CPS from GfK completed in January.
That also helped support adjusted operating profits, which ticked up 1% to £49.6m. On underlying basis, they slid 37%.
The adjusted operating margin slumped 400 basis points to 15%, however, due to "weak sales momentum" and higher staff and technology costs.
Costs associated with the acquisition of CPS, alongside a change in how amortisation is accounted for and restructuring costs, sent statutory pre-tax profits tumbling 91% to £4m.
However, looking ahead, and the AIM-listed firm - which as well as polling services provides businesses with consumer data and analysis - said that trading for the current financial year was broadly in line with the prior year, reflecting the slower sales bookings seen in the second half of the 2024 full-year.
It continued: "We expect the group to meet current market expectations for the 2025 full year."
As at 1015 GMT, shares in YouGov were up 11% at 443.25p.
Steve Hatch, chief executive, said: "The 2024 full-year has been a year of transition, challenge and change. We have made significant strategic progress.
"The macroeconomic environment remained challenging across the wider market research industry and for YouGov, while internal execution also contributed to the challenges we faced. We acted quickly over the summer and I am confident we have put the right initiatives in place.
"As we enter the 2025 full year we anticipate that momentum will build throughout the year, weighted towards the second half, as the benefits of our cost optimisation plan and new commercial leadership are realised."
YouGov was founded in 2000 by chair Stephan Shakespeare and former chancellor Nadhim Zahawi.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN