13th Oct 2014 08:33
LONDON (Alliance News) - Market research firm YouGov PLC Monday reported a 51% fall in full-year pretax profit, hit by higher restructuring and amortisation costs during a year in which it acquired Decision Fuel and subsequently renamed it YouGov Asia Pacific, and restructured its Nordic, US and German operations.
YouGov said current trading is in line with board expectations.
In a statement, YouGov said it made a GBP733,000 pretax profit in the year ended July 31, compared with a GBP1.5 million pretax profit in the prior year. Revenue increased to GBP67.4 million from GBP62.6 million, helped by 30% growth in data products and services, which now represents 29% of the total - up from 24% in 2013.
BrandIndex revenue increased by 53% to GBP8 million, while Omnibus revenue increase by a fifth to GBP8.8 million. Revenue from custom research edged up by 1% to GBP47.7 million.
"We're delivering what we set out to at the beginning of the year. Data products and services are growing well, with the profit contribution from these higher-margin businesses matching custom research for the first time. Our geographies are performing to plan, and we have continued to expand our footprint, allowing us to continue to leverage our products internationally," Chief Executive Stephan Shakespeare said in a statement.
Operating expenses rose to GBP44.2 million from GBP41.1 million.
The market research firm also incurred GBP4.0 million of costs due to amortisation of intangibles, up from GBP3.3 million last year, due to additional investment to grow its consumer panel, higher amortisation on software due to amortisation on assets acquired through business combinations and due to assets created through the group's own internal development activities and to separately acquired assets.
Exceptional items doubled to GBP2.4 million, half of which was due to acquisitions. Of that GBP1.2 million, GBP900,000 represents contingent consideration, which under accounting rules is deemed to be staff compensation costs. YouGov said that GBP600,000 of the total acquisition-related cost related to CoEditor, GBP500,000 to YouGov Asia Pacific and GBP100,000 to Definitive Insights. The remaining GBP1.2 million balance of exceptional costs was due to restructuring costs, of which GBP500,000 was incurred in the Nordic business, with the remainder split attributable to the US and German businesses.
YouGov increased its dividend by 33% to 0.8 pence per share.
YouGov shares were Monday quoted down 2.0% at 99.00p.
By Samuel Agini; [email protected]; @samuelagini
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