26
March 2024
YouGov plc
("YouGov" or the
"Group")
Results for the six months
to 31 January 2024
- Continued confidence in achieving FY24 market expectations
underpinned by robust sales pipeline
- Resilient H1 performance
with continued growth momentum in a challenging macro
environment
- Successful completion of
CPS acquisition with integration progressing well
YouGov, the international research
and data analytics group, announces its results for the six months
ended 31 January 2024.
Summary of
Results
|
|
Unaudited
six months
to
31 January
2024
£m
|
Unaudited
six months
to
31 January
2023
(restated)
£m
|
Change
%
|
Underlying
Change¹
%
|
Revenue
|
143.1
|
131.4
|
9%
|
2%
|
Adjusted Operating Profit1,2
|
27.9
|
22.6
|
23%
|
(4%)
|
Adjusted Operating Profit Margin
(%)2
|
19%
|
17%
|
200bps
|
(100bps)
|
Statutory Operating Profit
|
9.5
|
20.4
|
(53%)
|
|
Adjusted Profit before Tax1
|
30.3
|
27.1
|
12%
|
|
Statutory Profit before Tax
|
10.4
|
21.0
|
(50%)
|
|
Adjusted Earnings per Share1
|
20.4
|
19.7
|
4%
|
|
Statutory Basic Earnings per Share
|
3.7p
|
14.7p
|
(75%)
|
|
1. Defined in the explanation of
non-IFRS measures below.
2. Figures have been restated to
remove customer list amortisation which is now classified as a
Separately Reported Item.
Financial highlights
●
|
Revenue growth of 9% (HY23: 30%)
to £143.1m, with underlying¹ growth of 2% (HY23: 13%), against a
strong comparable period in the prior year.
|
●
|
Adjusted operating
profit2 up by 23% to £27.9m reflecting contribution from
the acquisition of the Consumer Panel Services of GfK GmbH ("CPS"),
with underlying¹ change of (4%) due to slightly lower gross
margins.
|
●
|
Adjusted operating profit
margin2 up 200 basis points (bps) to 19%, due to
accretive margin contribution from CPS.
|
●
|
Statutory operating profit down by
53% to £9.5m (HY23: £20.4m), due to exceptional costs of £18.4m
largely in relation to the CPS acquisition and related debt
financing.
|
●
|
Adjusted earnings per
share1 up by 4% to 20.4p (HY23: 19.7p). Statutory
earnings per share has decreased from 14.7p to 3.7p.
|
●
|
Robust balance sheet position
maintained with cash at period end of £53.4m (31 January 2023:
£41.4m) and leverage ratio1 of 1.6x net debt to
EBITDA.
|
Operational highlights
●
|
After a slow start to the year,
strong sales momentum has returned particularly for our panel-based
custom tracking solutions.
|
●
|
High-quality syndicated data
remains embedded across clients' workflows resulting in stable
demand for our Data Products division.
|
●
|
Following a slowdown in H2 FY23,
sales momentum in the technology sector has returned to the high
levels seen in the prior year period.
|
●
|
Our historically core markets, the
UK and US, remained the key growth drivers in the period while
performance in EMEA was flat on an underlying basis1. We
anticipate an acceleration in the US in the second half of the year
owing to a strong sales backlog and are beginning to see commercial
opportunities in relation to the presidential elections later this
calendar year.
|
●
|
Continued investment made during
the period to meet client research demand and drive further
innovation
|
|
○
|
Product innovation: Continued
investment of £6.0m (HY23: £4.4m) in technologies to drive long
term growth, including the launch of our first AI product to meet
growing demand in qualitative research. This new product builds on
our existing machine learning and data capabilities, and we are
pleased to see high levels of early interest for it in the
market.
|
|
○
|
Panel: Continued investment
of £3.4m (HY23: £4.8m) in the build-out of our panel and allocation
of resources to higher growth areas, such as the US to meet demand
for customised research.
|
|
○
|
Acquisitions: Acquired
US-based survey data management solution, KnowledgeHound, to
further extend the capabilities of the YouGov Crunch analytics
platform. Completed the transformational acquisition of CPS, the
European leader in household purchase data across 18 countries, for
a headline purchase price of €315m.
|
Update on CPS
●
|
The integration process is well
underway, with our combined teams collaborating on commercial
opportunities to capitalise on the benefits of the enhanced value
proposition.
|
●
|
We have seen a positive response
from both employees and clients, largely due to the highly
complementary nature of the transaction. Our shared DNA on
providing high quality data using an engaged panel, combined with
CPS's deep client relationships will support our continued growth
by expanding our combined offering to existing clients in our
current markets, and creating opportunities to win new clients and
roll out into new markets.
|
●
|
The acquired business has been
trading ahead of expectations since the acquisition announcement in
July 2023, on the back of investments in the business and strong
client renewals.
|
Current trading and outlook
●
|
While we continue to experience
longer sales cycles and a slower-than-expected Q1, our sales
momentum has accelerated in Q2 underpinned by clients' continued
focus on high-quality, data-driven solutions.
|
●
|
The Group's sales pipeline remains
healthy and, with over 75% of the stand-alone revenue expectation
already committed, it provides good visibility as we go into the
second half of the financial year.
|
●
|
While the overall weakness in
macro sentiment may impact the speed and level of some client
spending, we remain confident in achieving current market
expectations for the full year.
|
●
|
We remain disciplined in our
investment approach as we continue to optimise our cost base to
ensure we are poised for further margin improvement.
|
●
|
Our focus on our commercial
rigour, supported by the recent appointment of a Chief Commercial
Officer, will be central to our operations and in further
strengthening the Group's foundations to deliver on our third
long-term strategic plan.
|
Revised medium term targets
●
|
Following the completion of the
CPS transaction, the Group revises its medium-term guidance to
include the contribution from CPS as follows:
|
|
○
|
Medium-term revenue of £650
million (previously £500m); and
|
|
○
|
Medium-term adjusted operating
profit margin of 25% (unchanged).
|
Leadership and board changes
●
|
During the period, we appointed
Tom Fisher as Chief Commercial Officer, to lead our new
regionally-aligned commercial structure and help deepen
relationships with our blue-chip client base. He takes over from
Frank Saez, our previous Chief Revenue Officer, who stepped down at
the end of 2023.
|
●
|
Post period, on 19 February we
announced that Sundip Chahal, Chief Business Officer, had stepped
down for personal reasons.
|
●
|
Lynda Vivian, Chief Operating
Officer, succeeds Sundip in managing the integration of CPS.
Alongside the integration, Lynda will continue to focus on the
delivery of YouGov's Platform model, in line with the Company's
strategic growth plan, and ensuring operational excellence across
the business.
|
●
|
In light of the previously
announced stepping down of Rosemary Leith in April 2024 after nine
years' service, a search is currently underway for a new
Non-Executive Director.
|
Steve Hatch, Chief Executive Officer, said:
"YouGov delivered a resilient performance in the first half
of the financial year, with continued growth momentum in a
challenging macroeconomic environment. In line with our strategy,
we have continued to invest in the business to drive sustainable
growth and expand our technological capabilities both organically
and through acquisitions made during the period.
We were delighted to welcome the brilliant CPS and
KnowledgeHound employees to our team. I am pleased to confirm that
the integration of CPS is progressing well, with positive responses
from both clients and our combined teams. We are collaborating on
commercial opportunities, with active cross-sell projects beginning
to come through post period end, as we create more value for our
clients.
As we enter the second half, our clients are increasingly
looking for high-quality, data-driven solutions. The quality of our
products and services, the accelerated sales momentum seen in the
second quarter, and our robust sales pipeline gives
us confidence
that YouGov can achieve growth for the full year in line with
current market expectations."
Analyst presentation
A presentation for investors and
analysts will be held via Zoom audio webcast at 9.30am on Tuesday
26 March 2024. Link to join the presentation below.
Zoom webinar:
https://yougov.zoom.us/j/99189135756?pwd=Y3Zld08rYVlkVnVvUEVLWmdYRXErQT09
A copy of the presentation will be
available online at
https://corporate.yougov.com/investors/presentations/
shortly after the half-year results announcement
is live on the Regulatory News Service (RNS).
Forward looking statements
Certain statements in this full
year report are forward looking. Although the Group believes that
the expectations reflected in these forward-looking statements are
reasonable, we can give no assurance that these expectations will
prove to have been correct. As these statements involve risks and
uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking
statements.
We undertake no obligation to
update any forward-looking statements whether as a result of new
information, future events or otherwise.
Enquiries:
YouGov plc
Steve Hatch, CEO
Alex McIntosh, CFO
Hannah Jethwani, IR
Director
|
020 7012 6000
|
FTI Consulting
Charles Palmer / Valerija Cymbal /
Jemima Gurney
|
020 3727 1000
|
Deutsche Numis (NOMAD and Joint broker)
Nick Westlake / Iqra
Amin
|
020 7260 1000
|
Berenberg (Joint Broker)
Mark Whitmore / Richard Andrews /
Alix Mecklenburg-Solodkoff
|
020 3207 7800
|
About YouGov
YouGov is an international online
research data and analytics technology group.
Our mission is to offer
unparalleled insight into what the world thinks.
Our innovative solutions help the
world's most recognised brands, media owners and agencies to plan,
activate and track their marketing activities better.
With operations in the UK, the
Americas, Europe, the Middle East, India and Asia Pacific, we have
one of the world's largest research networks.
At the core of our platform is an
ever-growing source of consumer data that has been amassed over our
twenty years of operation. We call it Living Data. All of our
products and services draw upon this detailed understanding of our
27+ million registered panel members to deliver accurate,
actionable consumer insights.
As innovators and pioneers of
online market research, we have a strong reputation as a trusted
source of accurate data and insights. Testament to this, YouGov
data is regularly referenced by the global press, and we are the
second most quoted market research source in the
world.
YouGov. Living Consumer
Intelligence.
For further information, visit
business.yougov.com
Chief Executive Officer's
Review
The H1 FY24 period marks my first
six months at YouGov and I remain impressed with the calibre of our
staff and the level of trust we have with our clients and
panellists. YouGov has seen resilient performance during a period
of leadership transition and against a macro-economic environment
that remains challenging. Client budgets have remained under
pressure, in part due to the inflationary environment, leading to
some scaling back or delays in spending decisions. In our home
market, the UK, the IPA Bellwether Report estimated that market
research budgets shrunk 5% in Q4 2023, down from a 1.5% decline in
the preceding quarter. Additionally, industry body ESOMAR estimated
that the established market research sector in the US would expand
by only 1% in 2023.
Despite this backdrop, we continue
to capitalise on our strength in the US technology and media agency
sector as our data continues to be increasingly embedded into
client workflows. We have also seen strong growth in the retail and
travel sector, where we have been previously underweight, as
clients look to better understand changing consumer
behaviours.
From a regional perspective, the
UK continues to perform well owing to our strong reputation in the
market. Conversely, performance in the US has been more challenging
as a consequence of disruption in the e-sports and gaming sector
due to clients restructuring, a high comparable base for the
technology sector, as well as the academic sector which had
benefited from election work in the prior year period.
Performance by Geography
Revenue
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
Revenue
growth
%
|
Underlying1
revenue
change %
|
UK
|
32.8
|
31.1
|
5%
|
5%
|
Americas
|
60.5
|
63.0
|
(4%)
|
2%
|
EMEA
|
47.2
|
33.6
|
41%
|
0%
|
Asia
Pacific2
|
9.4
|
10.1
|
(7%)
|
(1%)
|
Central Items
|
(6.8)
|
(6.4)
|
8%
|
5%
|
Group
|
143.1
|
131.4
|
9%
|
2%
|
1 Defined in the explanation
of non-IFRS measures below.
2 Following a change in regional management structure,
Mainland Europe and Middle East have been combined into one
reporting unit and India has been reclassified from APAC into EMEA.
Prior year comparables have been restated.
Progress on our operational priorities for
FY24
Based on my initial assessment of
our business and strategy, we had identified five key areas of
priority and opportunities for the FY24 period. We have made
considerable progress on these areas as per below:
●
|
Panel Quality:
|
|
○
|
Published an industry leading
white paper in November 2023 that confirms the steps we have taken
to continuously improve data quality in YouGov BrandIndex over the
years and how these have allowed the Company to take a market
leading position and help raise industry standards.
|
|
○
|
Continued to monitor data
integrity and tightened the controls used in our key products to
address the long-standing industry issue of respondent attention.
The focus on panel quality and data integrity is becoming
increasingly prevalent and we are starting to see it referenced in
client RFPs.
|
|
●
|
Product Innovation:
|
|
○
|
Developed our first category view
solution that delivers YouGov BrandIndex alongside category survey
data to drive uptake amongst brand clients. The new solution
combines benefits of our flagship product and survey methodology as
a cost-efficient way of delivering brand tracking at a category
level. We expect to launch this product over the coming months,
beginning with the automotive sector.
|
|
○
|
Continuing to enhance our core
products to enable our customers to drive additional value from our
existing datasets. During the period, we announced the acquisition
of US-based KnowledgeHound to further extend our analytics
capabilities. Following its integration, the acquired technology
will help improve the UX and UI for our core data products and
enable data discovery, integration, and productisation of reports
for brands.
|
|
○
|
Scaling our newer behavioural
products such as YouGov Safe into new markets, expanding the
sources of data we collect and connecting it with YouGov Profiles
to enable it to be sold as an add-on solution in our smaller
markets.
|
|
○
|
Established an AI Platform team to
assess opportunities for new technological innovation and ways to
improve workflow automation. We have successfully launched our
first client-facing AI product, YouGov AI Qual Explorer, enabling
clients to run qualitative research quickly and cost-effectively
using natural language processing. Initial client feedback has been
positive with the product already securing its first
clients.
|
|
●
|
Commercial Rigour:
|
|
○
|
Announced the appointment of a new
Chief Commercial Officer, Tom Fisher, to lead our new regionally
aligned commercial team structure. Having previously led our
technology research team, Tom has an excellent track record of
expanding share of wallet with clients using our deep, rich dataset
and advanced analytics capabilities.
|
|
○
|
Signed one of our largest single
contracts to date with a multinational media agency. The multi-year
contract will embed our syndicated data products in over 20 markets
across the agency's different divisions and provides us an
opportunity to cross-sell our research services.
|
|
○
|
Continued focus on improving
business planning and account management through better alignment
of incentives, increased performance management and implementing
sales-enabling technology systems.
|
|
●
|
US Expansion:
|
|
○
|
The US remains the largest
addressable market opportunity for the Group and we expect the
region to be our biggest growth driver for FY24 as technology
clients continue to increase their spending on our connected custom
trackers.
|
|
○
|
The run-up to the US presidential
elections in November presents a significant opportunity to
increase brand awareness in the region and the pipeline of
commercial activities is starting to build up. Testament to our
quality and accuracy, FiveThirtyEight (538), the gold standard in
data journalism and electoral analysis, recently ranked YouGov in
4th place in its latest Pollster Rankings.
|
|
●
|
YouGov Platform:
|
|
○
|
Initial marketing outreach for our
self-serve survey tool, YouGov Surveys, has resulted in the
onboarding of over 200 paying users, of which about 150 users are
new to YouGov.
|
|
○
|
In order to drive organic
recruitment, we continue to produce engaging content on our public
data sites and have seen an increase in click throughs from our
public content onto our member and client platform.
|
|
○
|
Additionally, we have seen a
strong increase in participation from our panel members in the UK
and US, from commercially valuable activities to opinion sharing
via YouGov Chat to behavioural data sharing.
|
Acquisition of CPS
On 9 January 2024, the Group
announced that it has completed its acquisition of the Consumer
Panel Services of GfK GmbH ("CPS") for a headline purchase price of
€315 million. CPS is an established leader in household purchase
data, with panels across 18 European countries, consisting of over
100,000 households.
CPS capabilities are strategically
aligned with YouGov, adding highly engaged panels across the
European market and technology to capture and analyse consumer
purchasing data. The acquisition will support our continued growth
by expanding our combined offering to existing clients in our
current markets, as well as the opportunity to win new clients and
roll out into new markets.
Since the initial acquisition
announcement in July 2023, CPS has been trading ahead of
expectations set out at the time of the deal. Additionally, the
acquired business has successfully renewed all major client
contracts, further demonstrating its market leadership and strong
client relationships. During the period, the acquired business has
also successfully launched panels to enable passive data collection
in two new markets. Under the YouGov umbrella, the division intends
to continue to invest in strategic growth initiatives that will
accelerate its growth in the coming years.
YouGov has launched an integration
programme to ensure a measured and seamless transition for all its
stakeholders. The integration process is well underway, and the
Group has already successfully completed its first research project
cross-sell to a CPS client. Over the coming months, YouGov will be
working closely with consulting firm, AlixPartners, to design a
target operating model for the combined Group that allows us to
build on our respective strengths and capitalise on the commercial
opportunities ahead of us.
Following the completion of the
transaction, the Group revises its medium-term guidance to include
the contribution from CPS as follows:
●
|
Medium-term revenue of £650
million (previously £500m); and
|
●
|
Medium-term adjusted operating
profit margin of 25% (unchanged).
|
Steve Hatch
Chief Executive Officer
26 March 2024
Chief Financial Officer's
Review
The Group has delivered a
resilient performance in the six months to 31 January 2024. On a
reported basis, Group revenue increased 9% to £143.1m in the period
compared to £131.4m in the six months to January 2023, largely
driven by the acquisition of the CPS business.
Underlying1 revenue
growth (excluding foreign exchange movements and contribution from
acquisitions) was 2% against a challenging macro-economic
environment, continued pressure on client budgets and a high
comparable base in H1 FY23 that benefited from increased client
spend from the technology sector in the US. The Group's performance
was underpinned by stable demand in our Data Products and Research
divisions, while general market softness put pressure on
discretionary spend.
The Group's results were affected
by the net appreciation of £ Sterling as its average exchange rate
was 6.2% higher against the USD in this period compared to the six
months to 31 January 2023. The £ Sterling was also 0.5% higher
against the EUR over the same period. As a result, the net impact
of foreign exchange on the Group's adjusted operating profit was a
decrease of £2.1m.
Gross Margins were stable at 85%
as lower contribution from our high-margin Data Products division
was offset by the inclusion of the CPS business.
Group Operating costs (excluding
separately reported items) of £93.9m, (HY23: £88.9m) increased by
6% in reported terms and 2% on an underlying1 basis.
Group adjusted operating profit (excluding separately reported
items) increased to £27.9m (a 23% increase from £22.6m in HY23).
Underlying1 operating profit decreased by 4%, when
excluding the impact of acquisitions and FX, on the back of
slightly lower gross margins and higher IT costs.
The statutory operating profit
(which is after charging other separately reported items of £18.4m
largely relating to the acquisition of CPS and related debt
financing) decreased by £10.9m to £9.5m (HY23 £20.4m).
Performance by Division
Following the acquisition of CPS,
the segmental breakdown has been updated to include CPS as a
separate division and to combine Custom Research and Data Services,
previously shown as separate divisions, into a single division
called "Research".
Revenue
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
Revenue
growth
%
|
Underlying1
revenue change %
|
Data Products
|
41.1
|
41.9
|
(2%)
|
2%
|
Research
|
86.1
|
88.1
|
(2%)
|
1%
|
CPS
|
14.1
|
-
|
-
|
-
|
Central Items
|
1.8
|
1.4
|
29%
|
47%
|
Group
|
143.1
|
131.4
|
9%
|
2%
|
Adjusted Operating Profit1
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
Operating
Profit
growth
%
|
Operating
Margin
|
Six months
to
31 Jan
2024
|
Six months
to
31 Jan
2023
|
Data Products
|
15.9
|
17.5
|
(9%)
|
39%
|
42%
|
Research
|
16.1
|
16.0
|
1%
|
19%
|
18%
|
CPS
|
8.4
|
-
|
-
|
60%
|
-
|
Central Costs
|
(12.5)
|
(10.9)
|
15%
|
-
|
-
|
Group
|
27.9
|
22.6
|
23%
|
19%
|
17%
|
1 Defined in the explanation of non-IFRS measures
below.
Data Products
Our syndicated data products suite
includes YouGov BrandIndex and YouGov Profiles as well as newer
behavioural products, such as YouGov Safe.
Revenue from Data Products
declined by 2% in reported terms (2% growth on an underlying basis)
in the period. Geographically, the UK and EMEA regions benefited
from moderate underlying1 growth while Americas was
largely flat. Continued pressure on client budgets and higher price
competition have partially impacted renewal rates across the Group,
offset by sales of new subscriptions, in particular to media
agencies.
The adjusted operating profit from
Data Products declined by 9% to £15.9m and the operating margin
decreased to 39%. During the period, the division also expensed a
greater proportion of intangibles software compared to H1
FY23.
Research
Our Research division combines our
legacy Data Services and Custom Research divisions into a single
reporting unit. It comprises our fast turnaround research services,
such as YouGov RealTime Omnibus, as well as tailored research
projects and tracking studies.
In the period, revenue from
Research declined by 2% in reported terms and increased by 1% on an
underlying basis. Geographically, the UK saw good growth in custom
research projects, offset by some weakness in discretionary spend
on fast-turnaround research. The Americas saw stable demand from
the technology sector despite the high comparable base in the prior
year, and weakness in the gaming sector was offset by gains in the
FMCG and Retail sector.
The division's adjusted operating
profit was stable at £16.1m (HY23 £16.0m) representing an operating
profit margin of 19% (HY23: 18%).
Consumer Panel Services (CPS)
Our CPS division provides
household purchase data across 18 European countries.
CPS contributed £14.1m of revenue
and £8.4m in adjusted operating profit following the completion of the acquisition on 9 January
2024. Due to the nature of CPS data collection and contractual
commitments, there is a high volume of client reports delivered in
the months of January and July. Most of the CPS revenue is
recognised at a point in time per the IFRS 15 definition. This has
led to the high level of contribution to Group results during the
period.
Profitability by Geography
Adjusted Operating Profit1
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
Operating
Profit
growth
%
|
Operating
Margin
|
Six months
to
31 Jan
2024
|
Six months
to
31 Jan
2023
|
UK
|
7.3
|
6.2
|
18%
|
22%
|
20%
|
Americas
|
19.5
|
23.1
|
(16%)
|
32%
|
37%
|
EMEA
|
11.5
|
2.7
|
N.M.
|
24%
|
8%
|
Asia
Pacific2
|
0.5
|
1.0
|
(50%)
|
5%
|
10%
|
Central Costs
|
(10.9)
|
(10.4)
|
4%
|
-
|
-
|
Group
|
27.9
|
22.6
|
23%
|
19%
|
17%
|
1 Defined in the explanation of non-IFRS measures below.
Adjusted operating profit has been restated to remove customer list
amortisation which is now classified as a Separately Reported
Item.
2 Following a change in regional management structure,
Mainland Europe and Middle East have been combined into one
reporting unit and India has been reclassified from APAC into EMEA.
Prior year comparables have been restated.
Panel Development
We continue to invest in our
online panel to increase our research capabilities, both in our
newer geographies and in the US in the run up to the presidential
elections. At 31 January 2024, the total number of registered
panellists had increased by 15% to over 27 million, compared to 24
million at 31 January 2023, as set out in the table
below.
Region
|
Panel size
at
31 January
2024
millions
|
Panel
size at
31
January 2023
millions
|
UK
|
2.98
|
2.79
|
Americas
|
10.09
|
8.76
|
EMEA
|
9.70
|
8.28
|
Asia Pacific
|
4.93
|
4.18
|
Total
|
27.70
|
24.01
|
Group financial performance
Separately reported items
Separately reported items
including acquisition related costs of £18.4m are largely
comprising of professional services costs related to the
acquisition of CPS and related debt
financing.
Additionally, YouGov has updated
the presentation of separately reported items to include the
amortisation costs of acquired customer relationship intangible
assets. Therefore, these costs are not included in Group's Adjusted
Operating Profit. The change will give a more comparable view of
the Group's performance with other market research and technology
companies and a more comparable performance metric within our
divisions. Amortisation of acquired customer lists, in relation to
the acquisition of CPS and LINK Marketing Services AG, amounted to
£1.2m for the period ended 31 January 2024 (HY 2023:
£0.5m).
Finance Costs
Group net finance income increased
to £0.9m (HY 2023: £0.6m). Finance income for the six months ended
31 January 2024 was £2.1m, largely due to interest received on bank
deposits. Interest payable on our debt facilities amounted to £0.9m
during the same period.
Profit before tax and earnings per share
Adjusted profit before
tax was £30.3m, increasing by 12% compared to £27.1m in HY
2023, largely due to the contribution from the acquisition of CPS.
The adjusted tax rate increased from 21% in HY 2023 to 23%.
Statutory profit before tax decreased to £10.4m compared to £21.0m
in the six months ended 31 January 2023.
During the period adjusted
earnings per share has increased by 4% from 19.7p to 20.4p, due to
higher taxes and share count. Statutory earnings per share
has decreased from 14.7p to 3.7p.
Cash flow
The Group generated £16.9m (HY23:
£30.5m) in cash from operations (before paying interest and tax)
including a £7.5m outflow (HY23: £8.6m outflow) from net working
capital and after accounting for £18.4m in exceptional costs
related to the CPS acquisition and loan financing. Taxation
payments for the period totalled £3.3m (HY23: £1.6m).
Amortisation charges for
intangible assets totalled £10.7m in the period (HY23: £10.8m) of
which £4.8m (HY23: £5.4m) relates to our panel asset and £4.3m
(HY23: £4.6m) to our software and technology development
activities.
The Group invested £6.0m (HY23:
£4.4m) in the continuing advancement of our technology platform
while investment in panel recruitment amounted to £3.4m (HY23:
£4.8m) as we ramp up member recruitment ahead of key elections.
£0.2m (HY23: £0.6m) was spent on the purchase of property, plant
and equipment.
In January 2024, the Group
completed two acquisitions for a total consideration of £259.7m
(net of cash acquired). The consideration was primarily funded
through the drawdown of £214.5m in bank loans and existing cash on
the balance sheet.
Other cash outflows included £1.9m
spent on purchase of treasury shares and the annual shareholder
dividend payment of £10.1m (HY23: £7.7m) in December
2023.
The Group is expecting £4.6m of
deferred consideration to be paid in the next twelve months in
respect of future earn-outs related to acquisitions.
There was a net cash outflow of
£53.6m in the period, compared to an inflow of £4.7m in the six
months to 31 January 2023. The net cash balance of £53.4m was
higher than at 31 January 2023 (£41.4m).
Bank debt and liquidity
During the period, the Group
entered into a €280m debt facility to fund for the acquisition of
CPS. This facility comprised of a €40m Revolving Credit Facility
("RCF") and a €240m amortising term loan with a tenor of four years
("Term loan"). In January 2024, the full-term loan was drawn and
€10m was drawn on the RCF.
The Group's liquidity position
remains strong with £53.4m in cash on the balance sheet and €30m of
the RCF available for drawdown. The Group's net debt as at 31
January 2024 was £162.7m and, excluding the impact of IFRS 16, the
Group's leverage ratio1 as of 31 January 2024 was
1.6x. It is the Board's long-term
intention for the Group to return to a net cash
position.
Alex McIntosh
Chief Finance Officer
26 March 2024
1 Defined in the explanation of non-IFRS measures
below.
Explanation of Non-IFRS measures
Financial Measure
|
How we define it
|
Why we use it
|
Underlying growth
|
Growth in business excluding
impact of current and prior period acquisitions and business
closures, and movement in exchange rates (i.e. current year
performance calculated with exchange rates held constant at prior
year rates)
|
Provides a more comparable basis
to assess the year-to-year operational business performance and is
how our performance is reviewed internally
|
Separately reported
items
|
Items that, in the Directors'
judgement, are one-off or need to be disclosed separately by virtue
of their size or incidence or excluded to aid
comparability
|
Adjusted operating
profit
|
Operating profit excluding
separately reported items
|
Adjusted operating profit
margin
|
Adjusted operating profit
expressed as a percentage of revenue
|
Adjusted profit before
tax
|
Profit before tax before share
based payment charges, imputed interest and separately reported
items
|
Adjusted taxation
|
Taxation due on the adjusted
profit before tax, excluding the tax effect of separately reported
items
|
Provides a more comparable basis
to assess the underlying tax rate
|
Adjusted tax rate
|
Adjusted taxation expressed as a
percentage of adjusted profit before tax
|
Adjusted profit after
tax
|
Adjusted profit before tax less
adjusted taxation
|
Facilitates performance
evaluation, individually and relative to other companies
|
Adjusted profit after tax
attributable to owners of the parent
|
Adjusted profit after tax less
profit attributable to non-controlling interests
|
Adjusted earnings per
share
|
Adjusted profit after tax
attributable to owners of the parent divided by the weighted
average number of shares. Adjusted diluted earnings per share
includes the impact of share options
|
Cash conversion
|
The ratio of cash generated from
operations to adjusted EBITDA
|
Indicates the extent to which the
business generates cash from adjusted EBITDA
|
Net debt
|
Short and long-term borrowings
(excluding lease liabilities and including pension defined benefit
net deficit) less cash and cash equivalents.
|
Provides an insight into the debt
position of the Group, taking into account current cash
resources.
|
Leverage ratio
|
Net debt calculated as a multiple
of the last 12 months Adjusted EBITDA.
|
Reconciliation of Non-IFRS
measures1
Adjusted EBITDA2 reconciliation
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
% Change
|
Adjusted operating profit1
|
27.9
|
22.6
|
23%
|
Depreciation
|
2.4
|
2.2
|
9%
|
Amortisation
|
10.7
|
10.8
|
(1%)
|
Adjusted EBITDA
|
41.0
|
35.6
|
15%
|
Adjusted Profit Before Tax2
|
Six months
to
31 Jan
2024
£m
|
Six months
to
31 Jan
2023
£m
|
% Change
|
Statutory profit before
tax
|
10.4
|
21.0
|
(50%)
|
Separately reported
items
|
18.4
|
2.2
|
-
|
Share based payments
|
1.5
|
3.8
|
-
|
Adjusted profit before tax2
|
30.3
|
27.1
|
12%
|
1 See note 6 for reconciliation of adjusted earnings per
share.
2 Defined in the explanation of non-IFRS measures
above.
YOUGOV PLC
STATEMENT OF DIRECTORS' RESPONSIBILITIES
For the six months ended 31
January 2024
The Directors confirm that these
condensed interim financial statements have been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union and that the
interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
●
|
an indication of important events
that have occurred during the first six months and their impact on
the condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year; and
|
|
|
●
|
material related-party
transactions in the first six months and any material changes in
the related-party transactions described in the last annual
report.
|
The Board of Directors of YouGov
plc are:
●
|
Rosemary Leith - Non-Executive
Director3
|
●
|
Andrea Newman - Non-Executive
Director
|
●
|
Ashley Martin - Non-Executive
Director
|
●
|
Nick Prettejohn - Non-Executive
Director
|
●
|
Shalini Govil-Pai - Non-Executive
Director
|
●
|
Devesh Mishra - Non-Executive
Director
|
●
|
Stephan Shakespeare -
Non-Executive Chair 1
|
●
|
Steve Hatch - Chief Executive
Officer 2
|
●
|
Alex McIntosh - Chief Financial
Officer
|
By order of the Board:
Alex McIntosh
Chief Financial Officer
26 March 2024
1
Appointed on 01 August 2023 upon the retirement of Roger Parry on
31 July 2023
2 Appointed on 01 August
2023
3 Will retire from the
board in April 2024.
YOUGOV PLC
notes to the CONDENSED consolidated interim financial
statements
For the six months ended 31
January 2024
1
GENERAL
INFORMATION
YouGov plc and subsidiaries' (the
"Group") principal activity is the provision of digital market
research.
YouGov plc (the "Company") is the
Group's ultimate Parent Company. It is a public limited company
incorporated and domiciled in the United Kingdom. The address of
YouGov plc's registered office is 50 Featherstone Street, London
EC1Y 8RT, United Kingdom. YouGov plc's shares are listed on the
Alternative Investment Market of the London Stock
Exchange.
YouGov plc's condensed
consolidated interim financial statements are presented in UK
Sterling, which is also the functional currency of the Company.
Figures are rounded to the nearest million UK Sterling, unless
otherwise indicated.
These condensed consolidated
interim financial statements have been approved for issue by the
Board of Directors of YouGov plc (the "Board") on 26 March
2024.
This condensed consolidated
interim financial information for the six months ended 31 January
2024 does not comprise statutory accounts within the meaning of
Section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 July 2023 were approved by the Board on 11
October 2023 and delivered to the Registrar
of Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under section 498 of the Companies
Act 2006. The consolidated financial statements of the Group for
the year ended 31 July 2023 are available from the Company's
registered office or website
(https://corporate.yougov.com).
This condensed consolidated
interim financial information is unaudited and not reviewed by the
auditors.
2 BASIS
OF PREPARATION
These condensed consolidated
interim financial statements for the six months ended 31 January
2024 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and IAS 34
"Interim Financial Reporting" as contained in UK-adopted IFRS. The
condensed consolidated interim financial statements should be read
in conjunction with the annual financial statements for the year
ended 31 July 2023, which has been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 applicable to companies
reporting under IFRS. There has been no change in accounting
policies and principal risks and uncertainties in the interim
financial statements since the last annual financial
statements.
Accounting estimates and judgements
The preparation of interim
financial information requires management to make judgements,
estimates and assumptions that affect the application of accounting
policies and the reported amounts of income, expenses, assets and
liabilities. All significant estimates and
judgements made by management were consistent with those applied to
the consolidated financial statements for the year ended 31 July
2023.
3
SEGMENTAL ANALYSIS
The Board of Directors (which is
the "chief operating decision-maker") primarily reviews information
based on product lines. Following the acquisition of Consumer
Panel Services ("CPS") (see note 7), the presentation has been
updated to include CPS as a separate division and to combine Custom
Research and Data Services, previously shows as separate divisions,
into a single division called "Research".
In addition, amortisation related
to customer relationships intangible assets is now being treated as
a Separately Reported item (see note 4). £1.2m amortisation for the
6 months ended 31 January has been restated as a separately
reporting item, with a corresponding increase in the adjusted
operating profit.
For the six months to 31 January 2024
(Unaudited)
|
Research
|
Data
Products
|
CPS
|
Eliminations and unallocated
costs
|
Group
|
£m
|
£m
|
£m
|
£m
|
£m
|
Revenue
|
|
|
|
|
|
Recognised over time
|
24.3
|
40.8
|
0.3
|
1.6
|
67.0
|
Recognised at a point in
time
|
61.8
|
0.3
|
13.8
|
0.2
|
76.1
|
Total revenue
|
86.1
|
41.1
|
14.1
|
1.8
|
143.1
|
Cost of sales
|
(15.1)
|
(3.7)
|
(0.6)
|
(1.9)
|
(21.3)
|
Gross profit
|
71.0
|
37.4
|
13.5
|
(0.1)
|
121.8
|
Administrative expenses
|
(54.9)
|
(21.5)
|
(5.1)
|
(12.4)
|
(93.9)
|
Adjusted Operating profit/(loss)
|
16.1
|
15.9
|
8.4
|
(12.5)
|
27.9
|
Separately reported
items
|
|
|
|
|
(18.4)
|
Operating profit/(loss)
|
|
|
|
|
9.5
|
Net finance income
|
|
|
|
|
0.9
|
Profit before taxation
|
|
|
|
|
10.4
|
Taxation
|
|
|
|
|
(6.1)
|
Profit after taxation
|
|
|
|
|
4.3
|
|
|
|
|
|
|
|
For the six months to 31 January 2023
(Unaudited)
|
Research1
|
Data
Products
|
CPS
|
Eliminations and unallocated
costs
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
|
|
Recognised over time
|
24.0
|
41.7
|
-
|
0.6
|
66.3
|
|
Recognised at a point in
time
|
64.1
|
0.2
|
-
|
0.8
|
65.1
|
|
Total revenue
|
88.1
|
41.9
|
-
|
1.4
|
131.4
|
|
Cost of sales
|
(15.6)
|
(3.0)
|
-
|
(1.3)
|
(19.9)
|
|
Gross profit
|
72.5
|
38.9
|
-
|
0.1
|
111.5
|
|
Administrative expenses
|
(56.5)
|
(21.4)
|
-
|
(11.0)
|
(88.9)
|
|
Adjusted operating profit/(loss)2
|
16.0
|
17.5
|
-
|
(10.9)
|
22.6
|
|
Separately reported
items
|
|
|
|
|
(2.2)
|
|
Operating profit
|
|
|
|
|
20.4
|
|
Net finance income
|
|
|
|
|
0.6
|
|
Profit before taxation
|
|
|
|
|
21.0
|
|
Taxation
|
|
|
|
|
(5.0)
|
|
Profit after taxation
|
|
|
|
|
16.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Comparatives have been restated to combine Data Services
and Custom Research into Research, as explained
above.
2 Adjusted operating profit
has been restated to remove customer list amortisation which is now
classified as a Separately Reported Item.
3
SEGMENTAL ANALYSIS (continued)
Supplementary analysis by geography
|
|
|
|
|
|
Six months to 31 January
2024 (Unaudited)
|
Six
months to 31 January
2023
(Unaudited)
|
|
Revenue
|
Adjusted operating
profit
|
Revenue
|
Adjusted
operating profit3
|
|
£m
|
£m
|
£m
|
£m
|
UK
|
32.8
|
7.3
|
31.1
|
6.2
|
Americas1
|
60.5
|
19.5
|
63.0
|
23.1
|
EMEA 2
|
47.2
|
11.5
|
33.6
|
2.7
|
Asia Pacific
|
9.4
|
0.5
|
10.1
|
1.0
|
Intra-group revenues/unallocated
costs
|
(6.8)
|
(10.9)
|
(6.4)
|
(10.4)
|
Group
|
143.1
|
27.9
|
131.4
|
22.6
|
1 Americas refers to the US,
Canada and Latin America. KnowledgeHound results have been included
in Americas.
2 EMEA refers to Mainland
Europe, Middle East and India. Following a change in regional
management structure, Mainland Europe and Middle East have been
combined into one reporting unit and India has been reclassified
from APAC into EMEA. Prior period comparatives have been restated.
CPS results have been included in EMEA.
3 Adjusted operating profit has been restated to remove
acquired customer list amortisation which is now classified as a
Separately Reported Item.
4
SEPARATELY
REPORTED ITEMS
|
Unaudited
|
Unaudited
|
Audited
|
6 months
to
|
6 months
to
|
Year
ended
|
|
31-Jan
|
31-Jan
|
31-Jul
|
|
2024
|
2023
|
2023
|
|
£m
|
£m
|
£m
|
Acquisition-related
costs
|
16.4
|
0.2
|
5.0
|
Consideration treated as staff
costs
|
0.8
|
1.5
|
(1.1)
|
Amortisation of acquired customer
list
|
1.2
|
0.5
|
0.8
|
|
18.4
|
2.2
|
4.7
|
Acquisition related costs comprise
professional services costs related to the CPS acquisition
including investment banking deal fees, legal fees,
bridge facility, accounting services (Purchase Price Accounting and due
diligence) and, integration costs and other incidental
costs.
YouGov has updated the
presentation of separately reported items to include the
amortisation costs of acquired customer relationship intangible
assets. Therefore, these costs are not included in Group's Adjusted
Operating Profit. The change will give a more comparative view of
Group's performance with other market research and technology
companies and a more comparable performance metric within our
divisions. These costs were £1.2m for the period ended 31 January
2024.
5
TAXATION
|
Unaudited
|
Unaudited
|
Audited
|
6 months
to
|
6 months
to
|
Year
ended
|
|
31 January
|
31
January
|
31
July
|
|
2024
|
2023
|
2023
|
|
£m
|
£m
|
£m
|
Current taxation charge
|
6.9
|
5.7
|
14.4
|
Deferred taxation
(credit)
|
(0.8)
|
(0.7)
|
(4.3)
|
Total income statement tax
charge
|
6.1
|
5.0
|
10.1
|
The tax charge for the period has
been calculated based on the expected tax rates for the full year
in each country.
6
EARNINGS PER
SHARE
|
Unaudited
|
Unaudited
|
Audited
|
6 months
to
|
6 months
to
|
Year
ended
|
|
31 January
|
31
January
|
31
July
|
Number of shares
|
2024
|
20231
|
20231
|
Weighted average number of shares
during the period: (million shares)
|
|
|
|
- Basic
|
115.3
|
109.7
|
109.6
|
- Dilutive effect of
share options
|
2.5
|
2.4
|
2.5
|
- Diluted
|
117.8
|
112.1
|
112.1
|
Basic earnings per share (in
pence)
|
3.7p
|
14.7p
|
31.5p
|
Adjusted basic earnings per
share (in pence)
|
20.4p
|
19.7p
|
41.1p
|
Diluted earnings per share (in
pence)
|
3.7p
|
14.4p
|
30.8p
|
Adjusted diluted earnings per
share (in pence)
|
19.9p
|
19.3p
|
40.1p
|
|
|
|
|
The adjustments have the following effect:
|
|
|
|
Basic earnings per share (in pence)
|
3.7p
|
14.7p
|
31.5p
|
Share-based payments
|
2.2p
|
3.4p
|
6.9p
|
Social taxes on share-based
payments
|
(0.8p)
|
0.1p
|
-
|
Imputed interest
|
-
|
-
|
0.3p
|
Separately reported
items
|
16.0p
|
2.1p
|
4.2p
|
Tax effect of the above
adjustments and adjusting tax items
|
(0.7p)
|
(0.6p)
|
(1.8p)
|
Adjusted basic earnings per share (in
pence)
|
20.4p
|
19.7p
|
41.1p
|
|
|
|
|
Diluted earnings per share (in pence)
|
3.7p
|
14.4p
|
30.8p
|
Share-based payments
|
2.0p
|
3.3p
|
6.7p
|
Social taxes on share-based
payments
|
(0.8p)
|
0.1p
|
-
|
Imputed interest
|
-
|
-
|
0.3p
|
Separately reported
items
|
15.7p
|
2.1p
|
4.1p
|
Tax effect of the above
adjustments and adjusting tax items
|
(0.7p)
|
(0.6p)
|
(1.8p)
|
Adjusted diluted earnings per share (in
pence)
|
19.9p
|
19.3p
|
40.1p
|
1
Adjusted basic and diluted earnings per share have been restated to
reflect the change in the presentation of acquired customer list
amortisation as detailed in Note 4.
7
BUSINESS COMBINATIONS
Summary of acquisitions during the period ended 31 January
2024
During the period, the Group
completed two acquisitions. For both acquisitions the Group
obtained control through acquiring 100% of the voting equity
interest.
Acquisition
|
Date of
acquisition
|
Region/
Country
|
Primary reason for
acquisition
|
Principal
activity
|
KnowledgeHound
|
08
January 2024
|
US
|
Expansion
of data analytics offering
|
SaaS-based search-driven analytics platform
|
Gold CP Holding BV
("CPS")
|
09
January 2024
|
Europe
|
Growth
and expansion within Europe and new product offering
|
European
household market research company
|
CPS is a leading European provider
of data intelligence, primarily for the fast-moving consumer goods
(FMCG) industry. The company tracks household FMCG purchases
through a panel consisting of approximately 100 thousand households
across 18 countries, providing granular views into customer
purchasing data and insights into customer behaviour and purchasing
patterns.
KnowledgeHound provides a SaaS
platform which allows its customer base to maximize the use of data
obtained from surveys. They do this by processing data sets at
predetermined sizes and providing clients access through web
portals to all-in-one search, visualization, and an insights
delivery platform. Customers sign up to single or multi-year
contracts and are invoiced annually in advance. KnowledgeHound is
based in Chicago, Illinois and operates in variety of industries,
including Technology, Consumer, Pharma, Media and
Insurance.
The provisional amounts recognised
for each class of assets and liabilities acquired is as
follows:
|
KnowledgeHound
£m
|
CPS
£m
|
Total
£m
|
Intangible assets
|
3.1
|
119.9
|
123.0
|
Tangible Assets
|
-
|
8.5
|
8.5
|
Cash
|
0.1
|
16.8
|
16.9
|
Current
assets1
|
1.3
|
27.8
|
29.1
|
Current liabilities
|
(2.8)
|
(39.1)
|
(41.9)
|
Non-current
liabilities3
|
-
|
(39.0)
|
(39.0)
|
Net assets acquired
|
1.7
|
94.9
|
96.6
|
Goodwill on acquisition
|
4.5
|
175.6
|
180.1
|
Total
consideration2
|
6.2
|
270.5
|
276.7
|
¹
The carrying value of acquired receivables at the acquisition date
is the same as their fair value. The gross contractual amounts
receivable are £1.2m for KnowledgeHound and £18m for
CPS.
2 Total consideration includes
initial cash acquired on acquisition net of any debt assumed and
working capital adjustments.
3 Non-current liabilities
largely relate to Deferred tax liability.
Provisional Purchase Price Allocation
The above are provisional
allocations of the purchase prices as the acquisition happened in
January 2024. Reviews are being performed with external valuation
advisors to refine these estimates. This will be undertaken before
the full year financial statements are published.
7
BUSINESS COMBINATIONS (continued)
Fair value
Fair value adjustments included the
recognition of the fair value of customer relationships and panel
for CPS and software development in relation to KnowledgeHound.
There are no fair value adjustments in relation to the
consideration paid.
Goodwill
The goodwill amount in relation to
KnowledgeHound is attributable to the
workforce and the future economic benefits from
bringing this tool into YouGov. The goodwill amounts in relation to
CPS is attributable to the workforce and the future benefit to
YouGov of being able to engage with new audiences in Europe and
America. None of those goodwill amounts are deductible for tax
purposes.
Acquisition related costs
Acquisition related costs incurred
as part of the business combinations are disclosed in Note 4. These
have also been recognised in the income statement in the period as
separately reported items.
Revenue and profit contribution
From the date of acquisition, the
acquired businesses have contributed the following revenue and
profit before and after taxation attributable to the equity holders
of YouGov plc as outlined in the table below:
|
|
|
Revenue
|
Profit/(loss) before
tax
|
Profit/(loss) after
tax
|
|
|
|
£m
|
£m
|
£m
|
KnowledgeHound
|
|
|
0.2
|
0.0
|
0.0
|
Gold CP Holding BV
(CPS)
|
|
|
14.1
|
7.5
|
5.6
|
|
|
|
14.3
|
7.5
|
5.6
|
If these acquisitions had occurred
on 1 August 2023, the acquired businesses would have contributed
the following revenue and profit before and after taxation
attributable to the equity holders YouGov plc as outlined in the
table below. The amounts below are unaudited.
|
|
|
Revenue
|
Profit/(loss) before
tax
|
Profit/(loss) after
tax
|
|
|
|
£m
|
£m
|
£m
|
KnowledgeHound
|
|
|
1.5
|
(0.5)
|
(0.5)
|
Gold CP Holding BV
(CPS)
|
|
|
65.3
|
15.7
|
11.8
|
|
|
|
66.8
|
15.2
|
11.3
|
8
DIVIDEND
On 11 December 2023 a final
dividend in respect of the year ended 31 July 2023 of £10.1m (8.75p
per share) (2022: £7.7m, 7.0p per share) was paid to shareholders.
No interim dividend is proposed in respect of the period (2023:
£nil).
9
GOODWILL, INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT AND
RIGHT OF USE ASSETS
|
Goodwill
|
Other Intangible
assets
|
Property, plant and
equipment
|
Right of use
assets
|
|
£m
|
£m
|
£m
|
£m
|
Carrying amount at 31 July 2022
|
80.4
|
38.0
|
4.2
|
11.3
|
Additions:
|
|
|
|
|
Separately
acquired
|
-
|
5.7
|
0.6
|
0.5
|
Internally
developed
|
-
|
3.5
|
-
|
-
|
Amortisation and
depreciation
|
-
|
(10.8)
|
(0.8)
|
(1.4)
|
Fair value updates
|
2.7
|
(2.9)
|
-
|
-
|
Exchange differences
|
0.6
|
0.2
|
-
|
-
|
Carrying amount at 31 January 2023
|
83.7
|
33.7
|
4.0
|
10.4
|
Additions:
|
|
|
|
|
Separately
acquired
|
-
|
4.8
|
0.5
|
1.2
|
Internally
developed
|
-
|
4.3
|
-
|
-
|
Amortisation and
depreciation
|
-
|
(10.2)
|
(0.9)
|
(1.2)
|
Exchange differences
|
(1.3)
|
(0.7)
|
-
|
(0.3)
|
Carrying amount at 31 July 2023
|
82.4
|
31.9
|
3.6
|
10.1
|
Additions:
|
|
|
|
|
Through business
combinations
|
180.1
|
123.0
|
1.0
|
7.5
|
Separately
acquired
|
-
|
6.4
|
0.8
|
0.9
|
Internally
developed
|
-
|
2.2
|
-
|
-
|
Amortisation and
depreciation
|
-
|
(11.0)
|
(0.8)
|
(1.9)
|
Exchange differences
|
0.6
|
0.6
|
-
|
0.9
|
Carrying amount at 31 January 2024
|
263.1
|
153.1
|
4.6
|
17.5
|
In accordance with the Group's
accounting policy, the carrying values of goodwill and other
intangible assets are reviewed for impairment annually. A full
impairment test was undertaken as at 30 April 2023 with no
impairment. There are currently no indications of
impairment.
10 SHARE
CAPITAL
|
Number of
shares
|
Share capital
£m
|
At
31 January 2023
|
111,468,605
|
0.2
|
Issue of shares
|
5,605,789
|
-
|
At
31 July 2023
|
117,074,394
|
0.2
|
Issue of shares
|
23,635
|
-
|
At
31 January 2024
|
117,098,029
|
0.2
|
The Company has only one class of
share. The par value of each Ordinary Share is 0.2p (2023: 0.2p).
All issued shares are authorised and fully paid. Shares issued in
the year were in respect of the exercise of 23,635 share options at
0.2p per share.
11
SECURED
LOANS
The Group has entered into a €280m
debt facility to fund the acquisition of
CPS. This facility comprises of
€40m Revolving Credit Facility ("RCF")
and a €240m amortising term loan
with a tenor of four years ("Term loan"). In
January 2024 the full-term loan together with €10m of the RCF was
drawn. The applicable interest rate for
both facilities is EURIBOR plus a margin paid quarterly. As
at 31 January, €30m of the RCF was
available to fund any additional liquidity requirements of the
Group. The loan facility has an agreed
annual repayment schedule with the first repayment, of 15%, being
in October 2024 and this forms part of short-term borrowings. The
RCF drawn is repayable in April 2024. The facilities are subject to
financial covenants for interest cover and leverage assessed
annually.
12
FAIR VALUES OF
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Where market values are not
available, fair values of financial assets and financial
liabilities have been calculated by discounting expected future
cash flows at prevailing interest rates and by applying year end
foreign exchange rates.
The book value of the Group's
primary financial instruments are equal to their fair values. The
primary categories are Trade and other receivables, Cash and cash
equivalents and Trade and other payables as shown in the
Consolidated Statement of Financial Position.
13
TRANSACTIONS WITH DIRECTORS AND OTHER RELATED
PARTIES
Other than emoluments, there were
no other transactions with Directors during the period. Trading
between YouGov plc and Group companies is excluded from the related
party note as this has been eliminated on consolidation.
14 EVENTS
AFTER THE REPORTING PERIOD
No material events have taken
place subsequent to the reporting date.