TIDMYOU
RNS Number : 0738M
YouGov PLC
10 October 2016
10 October 2016
YouGov plc
Preliminary Results for the year ended 31 July 2016
Financial Highlights
Year to
31 July Year to
2016 31 July 2015
GBPm GBPm % change
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Revenue 88.2 76.1 16%
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Adjusted Operating Profit(1) 10.9 8.6 27%
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Adjusted Operating Profit
Margin (%) 12% 11%
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Adjusted Profit before Tax(1) 13.3 9.1 46%
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Adjusted Earnings per Share(1) 8.8p 7.0p 26%
--------- -------------- ---------
Dividend per Share 1.4p 1.0p 40%
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Statutory Operating Profit 4.3 2.9 51%
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Statutory Profit before
Tax 5.5 2.7 106%
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Statutory Earnings per Share 3.3p 3.2p 2%
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Highlights
-- Group revenue increased by 16% (12% on a constant currency basis)
-- Data Products and Services revenue up by 32% to GBP34.5m; now
represents 38% of Group total (2015: 34%)
o BrandIndex revenue increased by 39% to GBP14.5m
o Omnibus revenue increased by 30% to GBP16.4m
-- Custom Research revenue up by 9% to GBP54.3m
-- Adjusted operating profit up by 27%, adjusted profit before
tax up 46% and adjusted earnings per share up by 26%
-- Cash generated from operations (before paying interest and
tax) increased by 37% to GBP14.1m (2015: GBP10.3m)
-- Excellent cash conversion(1) of 130% of adjusted operating profit (2015: 120%)
-- Net cash balances of GBP15.6m (2015: GBP10.0m)
-- Recommended dividend increased by 40% to 1.4p per share
-- US largest market by revenue; both core and newer markets continue to perform well
-- Current trading in line with the Board's expectations
1. Defined in the explanation of non-IFRS measures on page 16.
Commenting on the results, Stephan Shakespeare, Chief Executive,
said:
"YouGov has delivered strong growth in revenue and profit. The
expansion in our global data products and services such as YouGov
BrandIndex and YouGov Omnibus demonstrates their stand-alone
strength and also the further potential benefits to clients that we
can offer by bringing all of our data together in the YouGov Cube.
We are continuing our journey towards becoming a global data and
analytics business and this will remain the focus of our investment
in our technology and staff resources. Trading in the current
financial year has started in line with our expectations and we
remain well positioned to continue to grow our business in
accordance with our goals and to exploit the tremendous potential
of YouGov's connected data system."
Enquiries:
YouGov plc
Stephan Shakespeare / Alan Newman 020 7012 6000
FTI Consulting
Charles Palmer / Antonia Gray 020 3727 1000
Numis Securities
Nick Westlake (NOMAD) / Toby Adcock
(Broker) 020 7260 1000
Chairman's Statement
The financial year ended 31 July 2016 has seen another strong
performance by our Company in both revenue and profit growth.
YouGov is delivering well against the ambitious five-year plan that
the Board set out in 2015 with our adjusted earnings per share
rising by 26% in the year. We are on track with our planned
transition from being a market researcher to becoming a data and
analytics business.
Group revenue of GBP88.2m increased by 16% from the previous
year, once again growing well ahead of the research market, and the
adjusted operating profit of GBP10.9m was up by 27% reflecting
improved margins as we move our product mix from traditional market
research to data products and services. BrandIndex revenues, for
example, were up 39%.
These results demonstrate the continuing success of our strategy
of focussing the business on providing in-depth data derived from
our digitally interactive panel to clients. We are selling this
data increasingly as a subscription based service and using our
technology and methods to transform the way that custom research
can be designed and delivered.
YouGov has continuously advanced its business since it started
in 2000 and pioneered the use of the internet as a means of
collecting survey data. This has now been widely adopted by the
industry as the standard research method. YouGov has now developed
into a global data and analytics business. This is exemplified by
the use of our technology and interactive panel to create a
proprietary, multi-dimensional database ("the YouGov Cube") that
allows the storage and analysis of thousands of data points
relating to our panellists, and the creation of ground-breaking
syndicated data products drawing on this connected data set.
Our global capability now includes the panel comprising of
almost 5 million people worldwide and a network of 31 offices in 21
countries. Our largest market is now the USA where the awareness of
YouGov's quality, methodologies and products is growing rapidly.
This expanding US presence and its increasing share of Group
earnings is a particular strength at a time when the economic
outlook in the UK as well as the Eurozone appears more
challenging.
YouGov's strong cash position provides us with the means to
continue to invest to support growth, including in our product
development, technology and panel. While the delivery of our
strategy remains firmly centred on organic growth, we also have the
capacity to consider bolt-on acquisition opportunities that may
arise to accelerate our development in line with that strategy.
In keeping with our progressive dividend policy, we are pleased
to propose a 40% increase in the annual dividend to 1.4p per share,
payable in December 2016.
Trading in the current year is in line with the Board's
expectations. The Board considers that YouGov remains well
positioned to maintain its successful progress towards the
achievement of its long-term targets.
Roger Parry
Chairman
10 October 2016
Chief Executive Officer's Review
Performance in the Year
YouGov's revenue for the year ended 31 July 2016 increased by
16% to GBP88.2m and by 12% on a constant currency basis. This
organic growth continued to be well above global market growth,
which is estimated at approximately 4%. In line with our strategy,
over two-thirds of the revenue growth was generated by our higher
margin Data Products and Services which grew by 32% from GBP26m to
GBP35m, although Custom Research also grew ahead of the market at
9% from GBP50m to GBP54m. As a result, the Group's adjusted
operating profit increased by 27% from GBP8.6m to GBP10.9m and the
adjusted operating margin increased by 1% point to 12%, mostly
attributable to Data Products and Services.
Revenue from Data Products and Services now represents 38% of
total Group revenue, compared to 34% in the previous year. Within
this segment, YouGov BrandIndex revenue grew by 39% to GBP14.5m,
YouGov Omnibus revenue grew by 30% to GBP16.4m and the new YouGov
Profiles product achieved revenue of GBP1.4m in its first full
financial year and now has over 75 subscribers worldwide. Data
Products and Services operating profit increased by 43% to GBP9.7m
and its profit margin went up from 26% to 28% as previous
investments in product development and sales resources fed through
into higher sales and revenue.
Custom Research operating profit grew by 7% to GBP6.9m (2015:
GBP6.4m). A significant part of this growth has been generated by
multi-wave custom tracking studies, including a number for major UK
and US technology and media clients whose results are delivered
through our new analytics platform, Crunch.
Regionally, the US operation, our largest in revenue terms,
accounted for 42% of overall revenue growth with a 20% increase in
GBP terms (12% in local currency) to GBP31m. Its operating profit
grew by 29% to GBP6m. This was largely driven by continuing strong
growth in Data Products including the US launch and roll out of
Profiles. UK revenue increased by 9% and its operating profit grew
by 28%. Our Middle East business grew revenue and profits
significantly across all its regional markets. The relatively new
Asia Pacific business maintained its rapid growth with BrandIndex
and Omnibus both doubling their regional revenue. France which has
a similar focus on these two core products also grew strongly.
Revenue in our Northern European businesses (Germany and Nordic),
which now operate under a single management team, was static in
overall terms although in both markets BrandIndex and Omnibus
revenue grew well while Custom Research revenue declined as the
business focus continued to shift towards the core YouGov
model.
Strategy
Our financial results show that we have the right strategy, our
implementation is effective, and our product and technology
investment is paying off. We will continue in the coming year to
focus the Group's resources on the areas of strategic importance,
while also maintaining our pace of investment in technology and
other enablers.
As businesses are increasingly looking for smarter alternatives
to traditional market research, YouGov is evolving from being a
market research company into a global data and analytics company.
38% of our revenue is now generated by Data Products and Services
and in the coming year we aim to accelerate progress towards
reaching the 50% mark. An increasing proportion of this business is
contracted for more than one year, with 15% of sales arising from
these in the last year.
Neither traditional market research nor 'big data' provides the
best solution to suit the needs of businesses in developing their
marketing strategies and constructing campaigns, nor for the kinds
of monitoring that allows for swift tactical adaptation. However,
YouGov's connected data - with which insights on attitudes,
motivations, lifestyles and cultures can be connected through
specific individuals into behavioural tracking - provides the new
systematic solution to fit the needs of today's marketers.
Our product-based, technology-driven, integrated system (which
includes BrandIndex, Profiles, Pulse, Crunch and the new
Collaborative Insights) generates over 1 million new connected data
points a day through 65,000 daily automated interviews (as well as
through passive digital tracking). It delivers the outputs on a
revolutionary analytics platform, and will in future allow users to
design self-service surveys targeted at specific groups. This adds
up to a new connected data system for understanding change in
markets and for planning, monitoring and adapting campaigns.
Further, with our new conception of the traditional 'Field and
Tab' service, augmented with high-scope background data available
from the Cube, we are redefining custom research surveys to become
're-contact studies', creating a new industry standard for speed,
quality and richness of detail.
The next phase
Our stated strategy is to increase significantly the higher
margin Data Products proportion of our business, moving from mainly
custom research to mainly data systems. For our next phase of
evolution, we are committed to accelerating this shift and building
out our full offer of systematic connected data so that it is
available to clients across all our territories. This offer is
already available and being used in 'alpha' versions by some lead
clients in the UK and USA. Key elements of the system which will be
delivered in this next phase include:
Growth and increased engagement of panel
We are increasing the engagement of our panel in two ways: by
making it as easy as possible for our panellists to talk to us and
by giving them entertaining and interesting content to consume and
interact with. As part of a push to boost our editorial content, we
have rolled out new websites across all our territories and are now
focusing on releasing a constant stream of topical data and
associated commentaries through our YouGov Daily Agenda initiative.
We have expanded our editorial content and production team and are
now investing further in technological enhancements to our data
archive so that our past data returns increased value to panellists
and the wider community as well as to clients.
Further interactive mobile data collection platforms
One of the ways that we are making it easier for our panellists
to talk to us is by making more of our platforms available
on-the-go. All our websites are now fully mobile-optimised and we
now have our first mobile app in the market: "YouGov Daily" (called
"First Verdict" in the US) provides users with daily short surveys
with instant feedback of results and the data from these surveys
feeds into the YouGov Daily Agenda described above. During the
coming year, we will be launching a new native mobile app which
will offer users even more of the full YouGov experience. This is
intended to streamline and intensify our efforts both for
interactivity (panel engagement) and visibility (public
profile).
24/7 global data processing and analytics resources
We are building the capacity to provide 24-hour data processing
and analytics support through the newly established shared services
data operations centre in Romania to which work is initially being
transferred from the existing European and Middle Eastern
operations teams.
Improved delivery through advanced analytics technology
Crunch, the online data analytics platform, is increasingly
being integrated into our customer-facing online offer, making data
processing faster and more accurate and enabling clients to obtain
increased value through easy-to-use analytics tools. Several
clients are now using this new platform to combine and analyse data
from other sources as well as data supplied by YouGov.
Self-service survey design tool
We are currently testing our new self-service tool
('Collaborative Insights') in the UK which automates and speeds up
the process of designing and scripting surveys both for the Omnibus
service and also for general custom research. The first development
phase enables rapid conversion of plain language text into scripted
and formatted surveys and supports online sharing of information
between the client and YouGov staff. This makes the interaction
between them much more efficient. Future development is planned to
automate further the entire survey ordering cycle.
More product-aligned custom trackers and services
Recurring, single or multi-country custom trackers (contracted
for one or more years), whose data is delivered through Crunch, are
a form of custom research that is highly aligned with YouGov's
strategic focus. Trackers meet clients' needs for longitudinal
monitoring and can provide company-specific information which even
clients using our BrandIndex and Profiles syndicated products may
require in order to supplement the information provided by the
product. Another form of customised information linked to Profiles
data is the re-contact study, usually conducted via the Omnibus
platform which enables client specific questions to be addressed to
a sample selected using Profiles. Connecting our data products and
services with custom trackers and re-contact studies creates an
integrated system of market research which YouGov is uniquely
placed to provide.
Outlook
Over the past few years, we have been consistently implementing
the strategy that the Board laid out to our shareholders and as a
result have delivered recurring revenue and profits growth. As
planned, YouGov has been transforming itself in response to the
needs of the market to become increasingly a global data and
analytics business. In the coming year, we aim to maintain our
progress in the same direction in pursuit of the goals that we have
set ourselves.
We recognise, however, that the UK's "Brexit" vote has created a
more uncertain economic and political environment, especially for
UK and European businesses, although the international spread of
our revenues (with a significant US element) means that our Group
can also benefit in the short-term if GBP sterling rates remain
relatively low compared to other major trading currencies.
Taking both the macro-environment and our own plans into
account, the Board is confident that YouGov remains well-placed to
exploit opportunities for growth, especially in our Data Products
and Services business, in both our more mature markets and our
newer operations.
Overview of Global Products and Services
Year to Year to % Change
Revenue 31 July 31 July at
2016 2015 % Constant
GBPm GBPm Change Currency
--------- --------- --------- ----------
Data Products (incl. BrandIndex) 16.6 11.9 40% 34%
---------------------------------- --------- --------- --------- ----------
Data Services (incl. Omnibus) 17.9 14.3 25% 24%
---------------------------------- --------- --------- --------- ----------
Total Data Products & Services 34.5 26.2 32% 29%
---------------------------------- --------- --------- --------- ----------
Custom Research 54.3 49.9 9% 5%
---------------------------------- --------- --------- --------- ----------
Eliminations (0.6) - - -
---------------------------------- --------- --------- --------- ----------
Group 88.2 76.1 16% 12%
---------------------------------- --------- --------- --------- ----------
Operating Margin
%
--------
Year to Year to
31 July 2016 31 July 2015 %
Adjusted Operating Profit GBPm GBPm Change 2016 2015
-------- -------- --------
Data Products (incl. BrandIndex) 4.5 2.3 99% 27% 19%
-------------- -------------- -------- -------- --------
Data Services (incl. Omnibus) 5.2 4.5 15% 29% 32%
-------------- -------------- -------- -------- --------
Total Data Products & Services 9.7 6.8 43% 28% 26%
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Custom Research 6.9 6.4 7% 13% 13%
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Central Costs (5.7) (4.6) (22%) - -
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Group 10.9 8.6 27% 12% 11%
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Data Products
Data Products are comprised of YouGov BrandIndex, our flagship
brand intelligence tracker, which accounted for 87% of this
category's revenue in the year; YouGov Profiles, the segmentation
and planning product and YouGov Reports, which currently provides
market intelligence reports and sector trackers in the UK.
Data products, once they are mature, have a higher profit margin
than custom research as the outputs are sold to multiple clients
while the input costs, such as data collection and analysis, are
incurred only once. However, in their early stages investment is
required in areas such as product development, analytics and sales
resources in order to launch and expand the products to new
markets. This year the 99% increase in the overall Data Products
profit and its margin improvement from 19% to 27%, reflected this
as YouGov Profiles began to achieve significant revenue on the cost
base established in the prior year and BrandIndex also increased
its revenue while maintaining its higher margins.
Within Data Products, BrandIndex grew revenue by 39% to GBP14.5m
(2015: GBP10.4m) and now accounts for 16% of total Group revenue,
generated from 500 subscribers in 27 markets across the world. The
US remained the largest BrandIndex market, accounting for 62% of
the total and growing by 39% (in GBP terms, 30% in local currency)
with the UK, its second largest market, growing by 25%. Germany,
the third largest BrandIndex market with 8% of Group revenue, grew
by an impressive 71% in 2016. And our Asia Pacific region grew by
nearly 150%, albeit from a smaller base.
BrandIndex serves major accounts among both advertising and
media planning agencies on the one hand and brand owners and
advertisers on the other. Its current clients include OMG,
Universal McCann, Bank of America, KFC and Subway. New client wins
in the period included Viacom, Airbnb, Amedia, Volkswagen, IKEA,
SunTrust and Telefonica UK (O2).
BrandIndex continued to focus on three major areas in FY16 to
drive growth: geographic expansion, product enhancements and
further integration and interoperability with Profiles.
Geographical expansion continued with launches in three new
markets: Russia, Hong Kong and South Korea. Our strategy for new
market entry is to secure at least one charter subscriber -
typically, a client that already subscribes to BrandIndex in its
existing markets - which guarantees a minimum initial revenue from
that new market.
We introduced enhanced reporting capabilities in the BrandIndex
tool that support advanced statistical significance testing and
provide more flexible time period analyses. These make it easier
for subscribers to embed BrandIndex data into their normal
workflow. A 'beta' version of a templated reporting capability has
been launched that will enable users to create, store and update
standardised periodic reports (e.g., weekly scorecards, monthly
brand health reports etc). This makes it easier for users to
download, present and circulate BrandIndex data in management
report formats in an efficient way while also improving scalability
of the service from YouGov's perspective.
YouGov Profiles offers the largest, most detailed and real-time
consumer database updated weekly in the UK, US, Germany, China,
Indonesia and Malaysia. Profiles was first launched in the UK in
November 2014, rolled out to the USA and Germany in 2015 and to the
Asia Pacific region in 2016. Its growth is progressing as planned
with Group sales exceeding GBP3m in the financial year under review
and revenue reaching well over GBP1 million. YouGov Profiles now
has over 50 subscribers in the UK and more than 75 worldwide. The
next stage of the global roll-out will be to France and the Nordic
region.
Profiles' clients include agencies such as MEC, OMG and
the7stars, and brand owners such as Experian, O2 (Telefonica UK)
and Universal Music. New clients in the period include JCDecaux,
RBS, City A.M. and OMD in the UK and Crossmedia, Beiersdorf and
Miles & More in Germany. In the US, the combined offering of
BrandIndex and Profiles is doing particularly well with joint sales
in the period to clients such as Viacom, MediaCom and
Crossmedia.
The UK version of Profiles is based on a database of some
200,000 separate data variables on consumers, collected initially
from approximately 250,000 YouGov panellists. The tool connects
data on profiles, brand, sector, and media, digital and social data
all in one place combining that with attitudes, interests, views
and likes. For example, it provides brand usage and perception data
for some 1,000 brands (plus usage for thousands more), TV viewing
for 5,000 programmes, website usage for the most active commercial
websites, thousands of "likes" on music artists, films,
personalities and much more.
Profiles improves the ability of marketers to understand the
people and audiences that matter to them. It allows users to
profile their target audience across multi-channel data sets from a
single source, with greater granularity and accuracy than ever
before. It enables media owners to identify potential advertisers
and make more informed content and scheduling decisions so as to
deliver the target audience that advertisers require.
This year we have introduced further functionality for utilising
Profiles data in programmatic advertising processes and this use is
proving increasingly popular with our UK and US digital media
agency clients. We have also introduced a dynamic segmentation
offering, allowing clients to run segmentations that are full of
colour and continually updated when combined with their Profiles
subscription.
YouGov Profiles is offered to the market as a subscription
service (like BrandIndex) with clients accessing the data through a
dedicated portal. It is delivered through a "point and click" tool,
which gives users access to a wide range of detailed and connected
data and provides analytics methods with which to interrogate and
interpret the data. It is planned to migrate the product delivery
onto the Crunch analytical tool.
YouGov BrandIndex and YouGov Profiles share a range of data sets
from within the YouGov Cube database. Profiles complements
BrandIndex since it allows users to define and understand their
potential target customers while BrandIndex allows them to measure
the effect of campaigns and other events on how their own and other
brands are perceived.
In the three main markets where YouGov Profiles is available so
far (UK, USA and Germany) extensive profiling in each BrandIndex
category is available to subscribers of both products. We therefore
believe that clients can obtain the maximum benefit in terms of
their marketing and sales activities by subscribing to both
products. In these territories, our product marketing and sale
strategy is thus designed to maximise the number of joint
subscriptions sold. An example of this joint use is in the "dining"
category, where the YouGov database captures critical data such as
frequency of dining out, monthly spend on dining out, frequency of
takeaway orders, monthly spend on takeaway orders and type of meal
ordered or eaten out. In Profiles, clients are able to look at
these key consumer segments, and use the data to develop content
that will appeal to them as well as to plan their media campaigns
and placements so as to reach their target groups more effectively.
In BrandIndex, the response and attitudes of these same key
consumer groups can be tracked in order to assess the effectiveness
of campaigns once they have been run.
YouGov Reports, which publishes a suite of market intelligence
reports using YouGov's data, has been a UK-only business up to now.
We are refocussing this segment into a more international offering
centred more directly on YouGov Cube data complemented by informed
analysis and commentaries. These reports will be made available
through an online portal which provides advanced search, analysis
and translation functionality as well as the ability to buy reports
online through the portal. This initiative is being led by a new
global head, appointed in March 2016. Revenue from the UK Reports
business contracted by 37% in the year just ended as the number of
titles published was reduced in anticipation of the
re-organisation.
Data Services
Data Services revenue largely comprises YouGov Omnibus
(including Field and Tab services) (92%) with the balance being the
provision of sample-only services in the Nordic and Middle East
regions.
YouGov Omnibus, our online fast-turnaround service, increased
its revenue globally by 30% to GBP16.4m. It continued to grow (by
7%) ahead of the market in the UK where it is the recognised market
leader, while growing strongly in markets where it has been
established more recently. The US achieved 52% growth in GBP terms
(42% in local currency terms), Nordic, the second largest market,
grew by 30% and Germany by 15%. Our newer and smaller Omnibus
markets, France and Asia Pacific grew revenue by 49% and 234%
respectively. This revenue growth flowed through to an increase of
15% in the total Data Services profit, from GBP4.5m to GBP5.2m.
As well as expanding geographically, Omnibus has continued to
extend the range of specialised YouGov Omnibus services which offer
access to more narrowly defined sample segments. This diverse range
includes Children and Parents, Shoppers and Citybus on the consumer
side and a fast-growing SME service, now available in all YouGov
Omnibus markets which enables clients to conduct B2B research among
Small and Medium Enterprise owners.
The growing footprint of the Omnibus network is attracting more
multi-national clients, leading to more multi-country projects
being run across our Group platform. Major international clients in
the period included Handelsblatt, Johnson & Johnson, VISA and
NBC Universal International Television.
We have also continued to improve the quality of Omnibus
deliverables, with slides now being provided as standard in most
markets. Over the coming year, further enhancements planned include
automation of the way that clients submit survey questions which
will make the turnaround from the client's initial question
generation to YouGov's survey results delivery even faster and
smoother for both clients and staff.
Custom Research
Our global Custom Research business continued to gain market
share with growth of 9% in the past year, taking its revenue to
GBP54.3m.
YouGov's Custom Research business conducts a wide range of
quantitative and qualitative research, tailored by our specialist
teams to meet clients' specific requirements. The scope, scale and
complexity of projects varies significantly and ranges from one-off
surveys designed to address clients' specific information needs at
a given time through to large-scale national and multinational
tracking studies. YouGov's panel-centric methodology and ability to
collect and analyse data rapidly, now enhanced by delivery of
results through the Crunch analytics platform, are well-suited to
meeting clients' needs for faster and more continuous tracking
data. Our tracking offering is being further developed through the
YouGov Cube which enables survey data to be connected with other
data from our library or that forms part of a data product such as
BrandIndex or Profiles. Revenue from tracking contracts now
comprises approximately 12% of total Custom Research revenue. Many
of these projects are contracted for on an annual basis and also
provide opportunities for further renewals.
Among our major Custom Research markets, Middle East achieved
30% revenue growth with clients in Saudi Arabia and Dubai such as
San Miguel and Ford as well as extending the large contracts in
Kurdistan. The UK grew by 7% winning new contracts with clients
such as HSBC and Vevo as well as continuing to serve commercial
clients such as Asda, Barclays and ITV and increasing its public
sector roster. The US grew by 9% (2% in local currency terms)
mainly through expanding the work won from its West Coast based
technology clients. Custom revenue fell in Germany by 5% due partly
to weakness in the regional financial services market. At the end
of the year, a re-organisation was undertaken to refocus staff
resources further towards the data products and services business
and scale the Custom business down to a profitable core offering.
Nordic Custom Research revenue also fell by 20%, partly due to the
non-renewal of some major contracts and as in Germany, in contrast
to growth in the Data Product and Services business.
The adjusted operating profit from Custom Research increased by
7% to GBP6.9m from GBP6.4m although the adjusted operating margin
remained static at 13%. Our aim has been to improve Custom Research
profitability by exploiting the benefits of our panel-based
methodology and improving the efficiency with which Custom work is
delivered. The new shared services data operations facility in
Romania was set up during the financial year and began to take on
work from the local units, notably Germany and Nordic, where a
number of posts were made redundant at the end of the year. This
new approach will start to yield net cost savings in the coming
year. The new Crunch analytics tool has also been deployed to a
number of major clients in USA, UK and Nordic who are now able to
access and analyse survey data and generate reports on it using
this advanced cloud-based analytical engine.
Major clients in the year included Asda, Barclays, ITV, HSBC and
Vevo (UK); Google, Sun Products and Blizzard Entertainment (USA);
Thomas Cook, Readers Digest and Deutsche Telekom (Germany),
Pernot-Ricard and Burger King (France); TDC Group and Aarhus
University (Nordic); Ford and San Miguel (Middle East); and Starcom
and Tesco (Asia Pacific).
Central Costs
Central costs of GBP5.7m include the Group management team and
central management functions together with the teams responsible
for YouGov's online presence and the development and roll-out of
the products and services based around the YouGov Cube.
Review of Geographic Operations
Year to Year to Revenue Revenue Growth
Revenue 31 July 2016 31 July 2015 Growth at Constant
GBPm GBPm % Currency %
UK 24.9 22.9 9% 9%
------------- ------------- ------- --------------
USUSA 31.0 25.9 20% 12%
------------- ------------- ------- --------------
Germany 9.1 8.9 2% 2%
------------- ------------- ------- --------------
Nordic 7.6 7.5 1% 1%
------------- ------------- ------- --------------
Middle East 13.9 10.7 30% 22%
------------- ------------- ------- --------------
France 1.7 1.2 46% 45%
------------- ------------- ------- --------------
Asia Pacific 2.8 1.4 100% 98%
------------- ------------- ------- --------------
Intra-group Revenues (2.8) (2.4)
------------- ------------- ------- --------------
Group 88.2 76.1 16% 12%
------------- ------------- ------- --------------
Adjusted Operating Year to Year to Operating Operating Margin
Profit 31 July 31 July Profit
2016 2015 Growth
GBPm GBPm %
-------------------- --------- --------- ---------- -------------------
2016 2015
-------------------- --------- --------- ---------- --------- --------
UK 7.2 5.6 28% 29% 24%
--------- --------- ---------- --------- --------
USA 6.0 4.6 29% 19% 18%
--------- --------- ---------- --------- --------
Germany 0.7 0.9 (21%) 8% 10%
--------- --------- ---------- --------- --------
Nordic 0.9 1.0 (6%) 12% 13%
--------- --------- ---------- --------- --------
Middle East 2.4 1.5 60% 17% 14%
--------- --------- ---------- --------- --------
France 0.1 0.1 (8%) 8% 13%
--------- --------- ---------- --------- --------
Asia Pacific (0.6) (0.4) 48% - -
--------- --------- ---------- --------- --------
Unallocated (5.8) (4.7) 22%
--------- --------- ---------- --------- --------
Group 10.9 8.6 27% 12% 11%
--------- --------- ---------- --------- --------
USA, our largest unit in revenue terms, grew revenue by 20% in
reported terms and 12% in constant currency terms, increasing its
operating profit by 29% and its operating margin to 19%. This
positive performance reflected the continuing high growth in US
Data Products and Services whose revenue grew by 46% in GBP terms
(37% in local currency) and now represents 35% of the total. The
launch of Profiles has added to the existing strength of BrandIndex
in the US market and has led to a number of combined sales while
Omnibus has also expanded its US client base. Awareness of YouGov's
brand name has also benefitted from the more prominent media
exposure received for our US political polling as well as continued
coverage of BrandIndex data in the business media. A new office was
opened in San Francisco and two more are planned during the coming
year (Chicago and Washington D.C.) to help us to exploit the
potential for YouGov to expand our business further in the US
market.
UK grew revenue by 9% in total with Data Products and Services
growing by 11% and representing 50% of the total. Within this
BrandIndex grew by 25% while Profiles doubled its revenue in its
first full financial year, securing renewals from all its initial
subscribers and gaining further traction among new clients. Omnibus
grew revenue by 6%. This good growth was partly offset by a
reduction of 24% in Reports revenue as the product portfolio is
being redesigned and repositioned. Custom Research grew revenue by
7%. The adjusted operating profit margin increased from 24% to
29%.
Our Middle East operations performed well, delivering revenue
growth of 30% in reported terms (22% in local currency) and a 60%
increase in operating profit. This reflected expansion in the
Custom Research business (which represents 88% of the total) across
the region especially of work from existing clients which utilised
existing resources as well as some uplift (54% growth) in
BrandIndex (with new subscriptions in Egypt) and Omnibus
services.
Germany returned to revenue growth this year and while this was
only 2%, the business mix continued to shift as planned towards
Data Products and Services which grew by 36% while Custom revenue
declined by 5%. Data Products and Services now make up 34% of total
revenue. BrandIndex grew by 71% with 36 new subscribers and the
newly launched Profiles achieved sales of GBP0.2m although only
minimal revenue was earned in this year. Omnibus also grew well
with a 15% increase. YouGov's public profile in Germany continued
to become more prominent benefitting from an active media
partnership with Handelsblatt, the leading business newspaper, and
a YouGov-Cambridge conference on the EU Referendum in Berlin whose
speakers included leading German politicians. The operating profit
fell by GBP0.2m to GBP0.7m largely due to the fall in custom
revenue and some investment in Data Products. A rationalisation of
the Custom and Operations teams was undertaken at the end of the
year resulting in a reduction of 16 posts and a redeployment of
resources to support further growth in Data Products and Services
in the coming year.
A similar re-orientation towards Data Products is under way in
the Nordic business which with Germany is now under a single
Northern Europe management team. Data Products and Services grew
there by 58% and Omnibus by 30% while Custom Research fell by 20%.
The regional operating profit fell slightly to GBP0.9m reflecting
revenue. Actions taken to restructure the Custom and Operations
areas towards the end of the year, including redundancies whose
costs are included in exceptional items, are expected to have a
positive impact in the coming year.
Our French business further expanded its client base and
delivered a 46% revenue increase, in line with plans with Omnibus
growing by 49% and BrandIndex by 37% with 10 new subscribers. The
operating profit remained static reflecting an increase of 110% in
the staff numbers to support this growth.
The Asia Pacific unit doubled its revenue to GBP2.8m both
through growth in its existing operations (China, Hong Kong,
Indonesia and Singapore) and expansion to Australia and Thailand.
This growth was driven by BrandIndex and Omnibus which together
make up 86% of the total. The regional launch of Profiles
(beginning with China) is also underway with the development of an
Asia Pac Cube which will be expanded as the panel size continues to
grow. The YouGov team across the region has now expanded by 45% to
48 staff. As a result of these investments, the operating loss
increased slightly to GBP0.6m.
Panel Development
As at 31 July 2016, the Group's online panel comprised a total
of 4.8m panellists, an increase of 30% from the total of 3.7m as at
31 July 2015. There was substantial investment in panellist
recruitment during the year both to support development of the
newer regional panels such as in France and in particular Asia
Pacific and to extend the coverage of more mature panels. All the
panels grew as a result and the panel sizes by region were:
Panel Size Panel Size
at 31 July at 31 July
Region 2016 2015
-------------- ------------ -----------
UK 882,700 752,300
USA 1,972,000 1,596,500
Middle East 728,500 481,000
Germany 235,500 199,200
Nordic 221,800 179,600
France 163,500 132,900
Asia Pacific 561,500 312,800
-------------- ------------ -----------
Total 4,765,500 3,654,300
-------------- ------------ -----------
Stephan Shakespeare
Chief Executive Officer
10 October 2016
Financial Performance
Income Statement Review
Group revenue for the year to 31 July 2016 of GBP88.2m was 16%
higher than the prior year.
The Group's gross profit (calculated after deducting costs of
panel incentives and external data collection) increased by
GBP10.1m to GBP68.7m. The Group's adjusted operating profit margin
increased by 1% to 12%, due to improved gross margins from 77% to
78% reflecting a higher proportion of work undertaken on the
Group's own panels. Our business continues to be highly cash
generative with the profit conversion rate increasing to 130% from
120%.
Operating expenses (excluding amortisation and exceptional
items) of GBP57.8m increased by GBP7.7m. The growth rate of 15% was
slightly lower than revenue so that the operating expense ratio
reduced by 0.3% point to 65.5% of revenue.
The average number of staff (full-time equivalents) employed
during the year increased by 70 to 692 from 622. Average revenue
per head increased to GBP128,000 from GBP122,000 and staff costs as
a percentage of revenue increased by 3% points to 50%.
Adjusted group operating profit increased by 27% to GBP10.9m
compared to GBP8.6m in the previous year. There was a net finance
income of GBP1.2m compared to a cost of GBP0.2m last year,
primarily due to foreign exchange translation gains. This resulted
in an adjusted profit before taxation of GBP13.3m, an increase of
46% over the prior year. Adjusted earnings per share for the year
rose by 1.8p (26%) to 8.8p.
The statutory operating profit (which is after charging
amortisation of GBP5.5m and exceptional items of GBP1.1m) increased
by GBP1.5m to GBP4.3m. This was slightly less than the increase in
adjusted group operating profit due to higher amortisation charges.
Statutory profit before taxation increased by GBP2.8m to GBP5.5m
reflecting the increase in operating profit and a net foreign
exchange translation gain of GBP1.2m compared to a loss of GBP0.2m
in the prior year.
Amortisation of Intangible Assets and Impairment
Amortisation charges for intangible assets of GBP5.5m were
GBP0.8m higher than the previous year. Amortisation of the consumer
panel increased by GBP0.5m to GBP1.6m reflecting the additional
investment made to grow the panel in the past two years.
Amortisation of software increased by GBP0.5m to GBP3.2m, GBP2.5m
(2015: GBP1.8m) of the total charge related to assets created
through the Group's own internal development activities, GBP0.6m
(2015: GBP0.7m) to separately acquired assets and GBP0.1m (2015:
GBP0.2m) to amortisation on assets acquired through business
combinations.
Exceptional Items
Exceptional costs of GBP1.1m (2015: GBP1.1m) were incurred in
the year. GBP0.7m of this related to costs incurred in
restructuring the German business, with a further GBP0.2m of
restructuring costs arising in the Nordics, and GBP0.2m in other
units. In addition, GBP0.1m of exceptional costs were incurred in
relation to the territorial expansion in Asia Pacific. There was an
exceptional credit of GBP0.1m in relation to the acquisition of
Decision Fuel (Asia Pacific) as a result of the writing back of the
contingent consideration and other related accruals.
Analysis of Operating Profit and Earnings per Share:
31 July 31 July
2016 2015
GBP'000 GBP'000
----------------------------------------------- -------- --------
Adjusted operating profit (1) 10,917 8,570
Share-based payments 1,111 669
Imputed interest 27 32
Net finance income/(cost) 1,199 (220)
Share of post-tax (loss)/profit in associates (4) 42
Adjusted profit before tax (1) 13,250 9,093
Adjusted taxation(1, 2) (4,099) (2,016)
----------------------------------------------- -------- --------
Adjusted profit after tax (1) 9,151 7,077
----------------------------------------------- -------- --------
Adjusted earnings per share (pence) (1) 8.8 7.0
----------------------------------------------- -------- --------
1. Defined in the explanation of non-IFRS measures
2. The year ended 31 July 2015 excluded a one-off credit of
GBP1.2m relating to the recognition of a deferred tax asset arising
from available tax losses in Germany.
Cash Flow
The Group generated GBP14.1m (2015: GBP10.3m) in cash from
operations (before paying interest and tax) including a GBP2.3m
(2015: GBP1.2m) net working capital inflow. The cash conversion
rate (percentage of adjusted operating profit converted to cash)
increases by 10% points to 130% of adjusted operating profit.
Expenditure on investing activities reduced to GBP6.0m (2015:
GBP6.2m) of which GBP6.1m (2015: GBP5.8m) was on capital
expenditure, GBP1.0m (2015: GBP1.1m) on purchasing tangible assets
and GBP5.1m (2015: GBP4.6m) of investment in intangible assets and
GBPnil (2015: GBP0.5m) related to acquisitions, including the
payment of deferred consideration. Expenditure on intangible assets
included GBP2.0m (2015: GBP1.5m) on panel recruitment and GBP3.0m
(2015: GBP3.1m) on software development, GBP2.6m (2015: GBP2.3m) of
which related to internally generated assets.
Expenditure on financing activities increased by GBP0.4m to
GBP1.2m including the dividend payment of GBP1.0m (2015: GBP0.8m)
and GBP0.2m (2015: GBPnil) acquiring additional non-controlling
interests in subsidiaries and associates.
There was a net cash inflow of GBP4.5m (2015: GBP2.6m) which
combined with an exchange gain of GBP1.0m (2015: GBP0.2m) resulted
in year-end net cash balances increasing by GBP5.5m to
GBP15.6m.
Currency
As well as achieving robust growth in constant currency terms,
the Group's results benefitted from the year-on-year depreciation
of the GBP, especially against the US$ and its related currencies,
which accelerated after the UK's EU Referendum. This added a
further 4% to the Group's overall revenue growth. The appreciation
of the US dollar led to approximately 8% higher reported revenue
growth in the US, Middle East and Asia Pacific while the Euro
appreciation meant that reported revenue in Germany, France and the
Nordics was 1% higher than if calculated in local currency terms.
Although the foreign exchange effect on costs largely matched that
on revenue, the translation gains realised on profits generated in
the US and the Middle East added a further GBP0.5m and 6% points to
the 21% increase in Group adjusted operating profit calculated in
constant currency terms.
Taxation
The Group had a tax charge of GBP2.1m (2015: GBP0.6m credit,
after recognising GBP1.2m of tax losses in Germany). On a reported
basis, the current tax charge was GBP2.3m (2015: GBP0.7m) with a
deferred tax credit of GBP0.2m (2015: GBP1.3m). On an adjusted
basis, the tax charge was GBP4.1m (2015: GBP2.0m), which represents
a tax rate of 31% on the adjusted profit before tax which was 9%
points higher than last year reflecting the profit growth in the
US.
Balance Sheet
Total shareholders' funds increased to GBP74.1m from GBP61.6m at
the prior year-end and total net assets increased to GBP74.1m
compared to GBP61.6m at 31 July 2015. Net current assets increased
to GBP17.5m from GBP10.3m. Current assets increased by GBP12.0m to
GBP45.3m, with debtor days increasing to 59 days from 56 days.
Current liabilities increased by GBP4.8m to GBP27.8m, with creditor
days decreasing to 28 days from 38 days at 31 July 2015. Current
liabilities includes GBP7.2m of deferred revenue in respect of
subscriptions (an increase of GBP1.8m from 31 July 2015), which
contributed to the increase in net cash balances in the year.
Non-current liabilities increased by GBP3.3m to GBP5.8m partly due
to the reassessment of the likely timing of the redemption of panel
incentives.
Proposed Dividend
The Board is recommending the payment of a final dividend of 1.4
pence per share for the year ended 31 July 2016. If shareholders
approve this dividend at the AGM (scheduled for Wednesday 7
December 2016), it will be paid on Monday 12 December 2016 to all
shareholders who were on the Register of Members at close of
business on Friday 2 December 2016.
Alan Newman
Chief Financial Officer
10 October 2016
Explanation of Non-IFRS measures
Financial Measure How we define it Why we use it
Adjusted operating Operating profit excluding Provides a more comparable
profit amortisation of intangible basis to assess the
assets charged to operating year-to-year operational
expenses and exceptional business performance
items
-------------------------------- -------------------------------
Adjusted operating Adjusted operating
profit margin profit expressed as
a percentage of revenue
-------------------------------- -------------------------------
Adjusted profit Profit before tax before
before tax amortisation of intangible
assets charged to operating
profit, share based
payment charges, imputed
interest and exceptional
costs.
-------------------------------- -------------------------------
Adjusted taxation Taxation due on the Provides a more comparable
adjusted profit before basis to assess the
tax, thus excluding underlying tax rate
the tax effect of amortisation
and exceptional items.
-------------------------------- -------------------------------
Adjusted tax rate Adjusted taxation expressed
as a percentage of
adjusted profit before
tax
-------------------------------- -------------------------------
Adjusted profit Adjusted profit before Facilitates performance
after tax tax less adjusted taxation evaluation, individually
and relative to other
companies
-------------------------------- -------------------------------
Adjusted profit Adjusted profit after
after tax attributable tax less profit attributable
to owners of the to non-controlling
parent interests
-------------------------------- -------------------------------
Adjusted earnings Adjusted profit after
per share 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.
-------------------------------- -------------------------------
Constant currency Current year revenue Shows the underlying
revenue change change compared to revenue change by eliminating
prior year revenue the impact of foreign
in local currency translated exchange rate movements
at the current year
average exchange rates.
-------------------------------- -------------------------------
Cash conversion The ratio of cash generated Indicates the extent
from operations to to which the business
adjusted operating generates cash from
profit adjusted operating
profits
-------------------------------- -------------------------------
Publication of Non-Statutory Accounts
The financial information relating to the year ended 31 July
2016 set out below does not constitute the Group's statutory
accounts for that year but has been extracted from the statutory
accounts, which received an unqualified auditors' report and which
have not yet been filed with the Registrar.
YOUGOV PLC
CONSOLIDATED INCOME STATEMENT
For the year ended 31 July 2016
---------------------------------------------- ---- -------- --------
2016 2015
Note GBP'000 GBP'000
---------------------------------------------- ---- -------- --------
Revenue 1 88,202 76,110
Cost of sales (19,476) (17,472)
---------------------------------------------- ---- -------- --------
Gross profit 68,726 58,638
Operating expenses (64,395) (55,773)
---------------------------------------------- ---- -------- --------
Operating profit 1 4,331 2,865
Amortisation of intangibles 5,478 4,633
Exceptional items 2 1,108 1,072
---------------------------------------------- ---- -------- --------
Adjusted operating profit 1 10,917 8,570
---------------------------------------------- ---- -------- --------
Finance income 2,144 422
Finance costs (945) (643)
Share of post-tax (loss)/profit of associates (4) 42
---------------------------------------------- ---- -------- --------
Profit before taxation 1 5,526 2,686
Taxation 3 (2,111) 580
---------------------------------------------- ---- -------- --------
Profit after taxation 1 3,415 3,266
---------------------------------------------- ---- -------- --------
Attributable to:
- Owners of the parent 3,401 3,240
- Non-controlling interests 14 26
---------------------------------------------- ---- -------- --------
3,415 3,266
---------------------------------------------- ---- -------- --------
Earnings per share
Basic earnings per share attributable to
owners of the parent 5 3.3p 3.2p
Diluted earnings per share attributable to
owners of the parent 5 3.2p 3.1p
---------------------------------------------- ---- -------- --------
All operations are continuing.
YOUGOV PLC
CONSOLIDATED statement of comrehensive income
For the year ended 31 July 2016
-------------------------------
Items in the statement above are disclosed net of tax.
2016 2015
GBP'000 GBP'000
-------------------------------------------- -------- --------
Profit for the year 3,415 3,266
Other comprehensive income/(expense)
Items that may be subsequently reclassified
to profit or loss
Currency translation differences 8,271 (262)
--------------------------------------------- -------- --------
Other comprehensive income/(expense) for
the year 8,271 (262)
--------------------------------------------- -------- --------
Total comprehensive income for the year 11,686 3,004
--------------------------------------------- -------- --------
Attributable to:
- Owners of the parent 11,667 2,982
- Non-controlling interests 19 22
--------------------------------------------- -------- --------
Total comprehensive income for the year 11,686 3,004
--------------------------------------------- -------- --------
Items in the statement above are disclosed net of tax.
YOUGOV PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 July 2016
------------------------------------ ---- ------------ ------------
31 July 2016 31 July 2015
Assets Note GBP'000 GBP'000
------------------------------------ ---- ------------ ------------
Non-current assets
Goodwill 7 42,401 35,793
Other intangible assets 8 10,739 10,352
Property, plant and equipment 9 3,568 2,973
Investments in associates 242 204
Deferred tax assets 5,416 4,404
------------------------------------ ---- ------------ ------------
Total non-current assets 62,366 53,726
Current assets
Trade and other receivables 10 28,643 22,507
Current tax assets 1,143 805
Cash and cash equivalents 15,553 10,017
------------------------------------ ---- ------------ ------------
Total current assets 45,339 33,329
------------------------------------ ---- ------------ ------------
Total assets 107,705 87,055
------------------------------------ ---- ------------ ------------
Liabilities
------------------------------------ ---- ------------ ------------
Current liabilities
Trade and other payables 11 25,839 19,042
Provisions 1,592 3,665
Current tax liabilities 392 276
Total current liabilities 27,823 22,983
------------------------------------ ---- ------------ ------------
Net current assets 17,516 10,346
------------------------------------ ---- ------------ ------------
Non-current liabilities
Trade and other payables - 3
Provisions 4,255 685
Contingent consideration 12 - 36
Deferred tax liabilities 1,538 1,725
------------------------------------ ---- ------------ ------------
Total non-current liabilities 5,793 2,449
------------------------------------ ---- ------------ ------------
Total liabilities 33,616 25,432
------------------------------------ ---- ------------ ------------
Net assets 74,089 61,623
------------------------------------ ---- ------------ ------------
Equity
Issued share capital 209 206
Share premium 31,086 31,051
Merger reserve 9,239 9,239
Foreign exchange reserve 13,730 5,464
Retained earnings 19,795 15,635
------------------------------------ ---- ------------ ------------
Total shareholders' funds 74,059 61,595
Non-controlling interests in equity 30 28
------------------------------------ ---- ------------ ------------
Total equity 74,089 61,623
------------------------------------ ---- ------------ ------------
YOUGOV PLC
CONSOLIDATED STATEMENT OF Changes in equity
For the year ended 31 July 2016
----------------------------------------------------------------------------------------------------------------------
Attributable to equity holders
of the Company
------------------------------------------------------------
Issued Foreign Non-controlling
share Share Merger exchange Retained interest Total
capital premium reserve reserve earnings Total in equity equity
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Balance at 1 August
2014 199 31,014 9,239 5,722 11,755 57,929 23 57,952
Exchange differences
on translating
foreign
operations - - - (258) - (258) (4) (262)
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Net loss recognised
directly in equity - - - (258) - (258) (4) (262)
Profit for the year - - - - 3,240 3,240 26 3,266
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Total comprehensive
gain/(expense) for
the year - - - (258) 3,240 2,982 22 3,004
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Issue of shares 21 3 37 - - - 40 - 40
Dividends paid 7 - - - - (804) (804) (17) (821)
Consideration for
purchase of
subsidiary 9, 21 4 - - - 500 504 - 504
Share-based payments 22 - - - - 669 669 - 669
Tax in relation to
share based payments 19 - - - - 275 275 - 275
Total transactions
with owners
recognised
directly in equity 7 37 - - 640 684 (17) 667
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Balance at 31 July
2015 206 31,051 9,239 5,464 15,635 61,595 28 61,623
Exchange differences
on translating
foreign
operations - - - 8,266 - 8,266 5 8,271
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Net gain recognised
directly in equity - - - 8,266 - 8,266 5 8,271
Profit for the year - - - - 3,401 3,401 14 3,415
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Total comprehensive
gain for the year - - - 8,266 3,401 11,667 19 11,686
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Issue of shares 21 3 35 - - (3) 35 - 35
Dividends paid 7 - - - - (1,042) (1,042) (14) (1,056)
Purchase of
non-controlling
interest in
subsidiary - - - - (28) (28) (3) (31)
Share-based payments 22 - - - - 1,111 1,111 - 1,111
Tax in relation to
share based payments 19 - - - - 721 721 - 721
---------------------- -------- -------- -------- --------- --------- -------- --------------- --------
Total transactions
with owners
recognised
directly in equity 3 35 - - 759 797 (17) 780
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
Balance at 31 July
2016 209 31,086 9,239 13,730 19,795 74,059 30 74,089
---------------------- ----- -------- -------- -------- --------- --------- -------- --------------- --------
YOUGOV PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 31 July 2016
-------------------------------
2016 2015
Note GBP'000 GBP'000
-------------------------------------------------- ---- -------- --------
Cash flows from operating activities
Profit before taxation 5,526 2,686
Adjustments for:
Finance income (2,144) (422)
Finance costs 945 643
Share of post-tax loss of associates 4 (42)
Amortisation of intangibles 5,567 4,765
Depreciation 819 703
Loss on disposal of property, plant and equipment
and other intangible assets - 49
Share-based payments 1,111 669
Other non-cash profit items (36) 94
Increase in trade and other receivables (1,925) (360)
Increase in trade and other payables 3,229 1,009
Increase in provisions 1,043 518
-------------------------------------------------- ---- -------- --------
Cash generated from operations 14,139 10,312
Interest paid (1) (14)
Income taxes paid (2,365) (730)
-------------------------------------------------- ---- -------- --------
Net cash generated from operating activities 11,773 9,568
Cash flow from investing activities
Acquisition of interest in associates (140) (140)
Settlement of contingent considerations 12 - (330)
Purchase of property, plant and equipment 9 (1,003) (1,123)
Purchase of intangible assets 8 (5,080) (4,631)
Proceeds from sale of plant, property and
equipment 7 -
Interest received 12 2
Dividends received from associates 28 48
-------------------------------------------------- ---- -------- --------
Net cash used in investing activities (6,176) (6,174)
Cash flows from financing activities
Acquisition of non-controlling interests (31) -
Proceeds from the issue of share capital 35 40
Repayment of borrowings (19) (28)
Dividends paid to shareholders (1,042) (804)
Dividends paid to non-controlling interests (14) (17)
-------------------------------------------------- ---- -------- --------
Net cash used in financing activities (1,071) (809)
-------------------------------------------------- ---- -------- --------
Net increase in cash and cash equivalents 4,526 2,585
Cash and cash equivalents at beginning of
year 10,017 7,245
Exchange gain on cash and cash equivalents 1,010 187
-------------------------------------------------- ---- -------- --------
Cash and cash equivalents at end of year 15,553 10,017
-------------------------------------------------- ---- -------- --------
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
Nature of operations
YouGov plc and subsidiaries' ("the Group") principal activity is
the provision of market research.
YouGov plc is the Group's ultimate parent company. It is
incorporated and domiciled in Great Britain. 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 annual consolidated financial statements are
presented in UK Sterling, which is also the functional currency of
the parent company.
Basis of preparation
The following financial information does not amount to full
financial statements within the meaning of Section 434 of Companies
Act 2006. The financial information has been extracted from the
Group's Annual Report and Financial Statements for the year ended
31 July 2016 on which an unqualified report has been made by the
Company's auditors.
The consolidated financial statements of YouGov plc are have
been prepared under the historical cost convention modified for
fair values under International Financial Reporting Standards as
adopted by the European Union (IFRS). These consolidated financial
statements have been prepared in accordance with IFRS, IFRS
Interpretations Committee (IFRS IC) and the Companies Act 2006
applicable to companies reporting under IFRS.
Financial statements for the year ended 31 July 2015 have been
delivered to the Registrar of Companies; the report of the auditors
on those accounts was unqualified and did not contain a statement
under Section 498 of the Companies Act 2006. The 2016 statutory
accounts will be delivered in due course.
Copies of the Annual Report and Financial Statements will be
posted to shareholders shortly and will be available from the
Company's registered office at 50 Featherstone Street, London, EC1Y
8RT.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
1 Segmental analysis
The Board of Directors (which is the "chief operating decision
maker") primarily reviews information based on product lines,
Custom Research, Data Products and Data Services, with supplemental
geographical information.
Eliminations
&
Custom Data Data Unallocated
Research Products Services Costs Group
2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------- ------------ --------
Revenue 54,318 16,629 17,905 (650) 88,202
Cost of sales (13,753) (3,007) (3,394) 678 (19,476)
---------------------------------- --------- --------- --------- ------------ --------
Gross profit 40,565 13,622 14,511 28 68,726
Operating expenses (33,704) (9,110) (9,320) (5,675) (57,809)
---------------------------------- --------- --------- --------- ------------ --------
Adjusted operating profit 6,861 4,512 5,191 (5,647) 10,917
Amortisation of intangible assets (5,478)
Exceptional items (1,108)
---------------------------------- --------- --------- --------- ------------ --------
Operating profit 4,331
Finance income 2,144
Finance costs (945)
Share of post-tax loss in joint
ventures and associates (4)
---------------------------------- --------- --------- --------- ------------ --------
Profit before taxation 5,526
Taxation (2,111)
---------------------------------- --------- --------- --------- ------------ --------
Profit after taxation 3,415
---------------------------------- --------- --------- --------- ------------ --------
Other segment information
Depreciation 506 108 112 93 819
---------------------------------- --------- --------- --------- ------------ --------
Eliminations
&
Custom Data Data Unallocated
Research Products Services Costs Group
2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------- ------------ --------
Revenue 49,901 11,908 14,301 - 76,110
Cost of sales (13,181) (2,083) (2,208) - (17,472)
---------------------------------- --------- --------- --------- ------------ --------
Gross profit 36,720 9,825 12,093 - 58,638
Operating expenses (30,300) (7,563) (7,575) (4,630) (50,068)
---------------------------------- --------- --------- --------- ------------ --------
Adjusted operating profit 6,420 2,262 4,518 (4,630) 8,570
Amortisation of intangible assets (4,633)
Exceptional items (1,072)
---------------------------------- --------- --------- --------- ------------ --------
Operating profit 2,865
Finance income 422
Finance costs (643)
Share of post-tax profit in joint
ventures and associates 42
---------------------------------- --------- --------- --------- ------------ --------
Profit before taxation 2,686
Taxation 580
---------------------------------- --------- --------- --------- ------------ --------
Profit after taxation 3,266
---------------------------------- --------- --------- --------- ------------ --------
Other segment information
Depreciation 427 83 100 93 703
---------------------------------- --------- --------- --------- ------------ --------
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
Supplementary information by geography
Revenue and adjusted operating profit by geography based on the
origin of the sale
2016 2015
Adjusted Adjusted
operating operating
Revenue profit/(loss) Revenue profit/(loss)
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------------- -------- --------------
UK 24,927 7,150 22,857 5,582
USA 30,960 6,014 25,867 4,647
Germany 9,098 698 8,904 887
Nordic 7,577 942 7,476 1,001
Middle East 13,948 2,430 10,718 1,520
France 1,689 134 1,158 145
Asia Pacific 2,832 (586) 1,419 (397)
Intra-group revenues/unallocated
costs (2,829) (5,865) (2,289) (4,815)
--------------------------------- -------- -------------- -------- --------------
Group 88,202 10,917 76,110 8,570
--------------------------------- -------- -------------- -------- --------------
^Operating profit/(loss) before amortisation of intangible
assets and exceptional items.
Revenue by geography based on the destination of the
customer
Middle Asia Intra-group
UK East Germany Nordic USA France Pacific revenues Group
2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- -------- -------- -------- -------- -------- ----------- --------
External sales 24,654 10,819 8,722 7,451 32,563 1,789 2,204 - 88,202
Inter-segment
sales 1,925 209 512 356 1,922 141 193 (5,258) -
--------------- -------- -------- -------- -------- -------- -------- -------- ----------- --------
Total revenue 26,579 11,028 9,234 7,807 34,485 1,930 2,397 (5,258) 88,202
--------------- -------- -------- -------- -------- -------- -------- -------- ----------- --------
2015
External sales 21,669 9,327 8,493 7,373 26,627 1,361 1,260 - 76,110
Inter-segment
sales 1,546 160 365 434 1,285 75 79 (3,944) -
--------------- -------- -------- -------- -------- -------- -------- -------- ----------- --------
Total revenue 23,215 9,487 8,858 7,807 27,912 1,436 1,339 (3,944) 76,110
--------------- -------- -------- -------- -------- -------- -------- -------- ----------- --------
Inter-segment sales are priced on an arm's-length basis that
would be available to unrelated third parties.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
2 EXCEPTIONAL ITEMS
2016 2015
GBP'000 GBP'000
--------------------------------------------- -------- --------
Restructuring costs 1,086 650
Legal costs 157 -
Acquisition-related costs (130) 431
Change in accounting estimation - contingent
consideration (5) (9)
--------------------------------------------- -------- --------
1,108 1,072
--------------------------------------------- -------- --------
Restructuring costs in the year included GBP894,000 in relation
to the restructuring of the Northern European units including
GBP723,000 in respect of the rationalisation of the German Custom
and Operations teams undertaken at the end of the year and
GBP171,000 in reorganising the management structure in Nordics.
Restructuring costs were also incurred in reorganising sales and
marketing operations in the UK GBP107,000, reorganising the IT
Development structure GBP68,000 and reorganising the management
structure in the US GBP17,000.
Restructuring costs in the prior year were the cost of
reorganising the management structure of the US GBP294,000, Middle
East GBP127,000, UK GBP116,000, Germany GBP67,000 and Nordic
GBP46,000 businesses.
Legal costs incurred in connection with establishing operations
in Thailand.
The acquisition related income in the year is in respect of the
acquisition of Decision Fuel comprising a GBP53,000 reduction in
contingent deemed staff costs and a GBP77,000 reduction in
provisions in respect of transaction costs.
Acquisition related costs in the prior year comprise GBP501,000
of contingent consideration that is deemed under IFRS to be staff
compensation cost in relation to the acquisition of Doughty Media 2
and a net credit of GBP70,000 in relation to the acquisition of
Decision Fuel including a GBP124,000 reduction in contingent deemed
staff costs, GBP41,000 of transaction costs and a GBP13,000
reduction in the fair value of acquired net assets.
The change in estimated contingent consideration in both years
is in respect of the Decision Fuel acquisition.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
3 TAXATION
The taxation charge represents:
2016 2015
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Current tax on profits for the year 2,083 714
Adjustments in respect of prior years 173 (44)
-------------------------------------------------- -------- --------
Total current tax charge 2,256 670
-------------------------------------------------- -------- --------
Deferred tax:
Origination and reversal of temporary differences (309) 84
Adjustments in respect of prior years 85 (1,350)
Impact of changes in tax rates 79 16
-------------------------------------------------- -------- --------
Total deferred tax credit (145) (1,250)
-------------------------------------------------- -------- --------
Total income statement tax charge/(credit) 2,111 (580)
-------------------------------------------------- -------- --------
The tax assessed for the year is higher (2015: lower) than the
standard rate of corporation tax in the UK.
The differences are explained below:
2016 2015
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Profit before taxation 5,526 2,686
Tax charge calculated at Group's standard rate
of 20% (2015: 20.67%) 1,105 555
Variance in overseas tax rates 616 371
Impact of changes in tax rates 79 16
Gains not subject to tax (7) (79)
Expenses not deductible for tax purposes 7 46
Tax losses for which no deferred income tax asset
was recognised 52 (86)
Adjustments in respect of prior years 258 (1,394)
Associates results reported net of tax 1 (9)
-------------------------------------------------- -------- --------
Total income statement tax charge for the year 2,111 (580)
-------------------------------------------------- -------- --------
On 8 July 2015, the UK corporation tax rate was reduced from 20%
to 19% from 1 April 2017 and to 18% from 1 April 2020. This change
has been substantively enacted at the balance sheet date and,
therefore, is included in these financial statements. Further
changes to the UK corporation tax rates were announced in the
Chancellor's Budget on 16 March 2016. These include reductions to
the main rate to 17% from 1 April 2020. As these changes had not
been substantively enacted at the balance sheet date their effects
are not included in these financial statements.
Adjustments in respect of prior periods in the prior year
includes the recognition of GBP1,206,000 of tax losses incurred in
prior years in Germany.
4 DIVID
On 14 December 2015, a final dividend in respect of the year
ended 31 July 2015 of GBP1,042,000 (1.0p per share) (2014:
GBP804,000 (0.8p per share)) was paid to shareholders. A dividend
in respect of the year ended 31 July 2016 of 1.4p per share,
amounting to a total dividend of GBP1,460,000 is to be proposed at
the Annual General Meeting on 7 December 2016. These financial
statements do not reflect this proposed dividend payable
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
5 EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year. Shares
held in employee share trusts are treated as cancelled for the
purposes of this calculation.
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of shares
and the post-tax effect of dividends and/or interest, on the
assumed conversion of all dilutive options and other dilutive
potential Ordinary Shares.
The adjusted earnings per share has been calculated to reflect
the underlying profitability of the business by excluding the
amortisation of intangible assets, share-based payments, imputed
interest, impairment charges, exceptional items and any related tax
effects.
2016 2015
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Profit after taxation attributable to equity holders
of the parent company 3,401 3,240
Add: amortisation of intangible assets included
in operating expenses 5,478 4,633
Add: share-based payments 1,111 669
Add: imputed interest (Note 5) 27 32
Add: exceptional costs 1,108 1,072
Tax effect of the above adjustments and adjusting
tax items (1,988) (2,595)
----------------------------------------------------- -------- --------
Adjusted profit after taxation attributable to
equity holders of the parent company 9,137 7,051
----------------------------------------------------- -------- --------
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
2016 2015
-------------------------------------------------- --------- -------
Number of shares
Weighted average number of shares during the
year: ('000 shares)
- Basic 103,944 100,998
- Dilutive effect of share options 3,361 4,051
-------------------------------------------------- --------- -------
- Diluted 107,305 105,049
-------------------------------------------------- --------- -------
The adjustments have the following effect:
Basic earnings per share 3.3p 3.2p
Amortisation of intangible assets 5.3p 4.6p
Share-based payments 1.1p 0.7p
Imputed interest 0.0p 0.0p
Exceptional costs and impairments 1.0p 1.1p
Tax effect of the above adjustments and adjusting
tax items (1.9p) (2.6p)
-------------------------------------------------- --------- -------
Adjusted earnings per share 8.8p 7.0p
-------------------------------------------------- --------- -------
Diluted earnings per share 3.2p 3.1p
Amortisation of intangible assets 5.1p 4.4p
Share-based payments 1.0p 0.7p
Imputed interest 0.0p 0.0p
Exceptional costs and impairment 1.0p 1.0p
Tax effect of the above adjustments and adjusting
tax items (1.8p) (2.5p)
-------------------------------------------------- --------- -------
Adjusted diluted earnings per share 8.5p 6.7p
-------------------------------------------------- --------- -------
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
6 BUSINESS COMBINATIONS AND DISPOSALS
Doughty Media 2 Ltd
In 2013, YouGov acquired 100% of Doughty Media 2 Ltd, which
owned the majority shareholding in CoEditor Ltd, increasing
YouGov's interest in CoEditor Ltd to 98.3%.
During the year YouGov acquired the remaining 1.7% shareholding
in CoEditor Ltd for a cash consideration of GBP31,000.
Acquisition of Decision Fuel
On 9 January 2014, YouGov plc purchased a 100% shareholding in
Decision Fuel an Asia-based research and technology company with
offices in Hong Kong, Shanghai and Singapore. The basic purchase
consideration payable is the sum of six times the EBITDA of
Decision Fuel in the year ending 31 July 2016 and two times EBITDA
(capped at 1.5 times 2016 EBITDA) in the year ending 31 July 2017
less any working capital funding provided by YouGov to Decision
Fuel prior to the end of the performance year. An initial payment
of $1,000,000 (GBP608,000) was paid upon completion, with the
balance payable in two instalments in December 2017 and December
2018.
It is now estimated that no further consideration will be
payable and as a result the contingent consideration of GBP5,000
and the GBP53,000 of deemed staff compensation charge recognised in
prior periods were written back as exceptional items along with
GBP77,000 of accrued transaction costs.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
7 GOODWILL
Middle Asia
East USA Nordic Germany CoEditor Pacific Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- -------- -------- -------- -------- -------- --------
Carrying amount at 1
August 2014 1,306 15,624 7,890 10,301 569 639 36,329
Exchange differences 110 1,321 (878) (1,142) - 53 (536)
----------------------- -------- -------- -------- -------- -------- -------- --------
Carrying amount at 31
July 2015 1,416 16,945 7,012 9,159 569 692 35,793
Exchange differences 251 2,996 1,417 1,821 - 123 6,608
----------------------- -------- -------- -------- -------- -------- -------- --------
Carrying amount at 31
July 2016 1,667 19,941 8,429 10,980 569 815 42,401
----------------------- -------- -------- -------- -------- -------- -------- --------
At 31 July 2016
----------------------- -------- -------- -------- -------- -------- -------- --------
Cost 1,667 19,941 8,429 11,655 569 815 43,076
Accumulated impairment - - - (675) - - (675)
----------------------- -------- -------- -------- -------- -------- -------- --------
Net book amount 1,667 19,941 8,429 10,980 569 815 42,401
----------------------- -------- -------- -------- -------- -------- -------- --------
In accordance with the Group's accounting policy, the carrying
values of goodwill and other intangible assets are reviewed
annually for impairment. The cash-generating units (CGUs) are
consistent with those segments shown in Note 1. The 2016 impairment
review was undertaken as at 31 July 2016. The recoverable amounts
of all CGUs have been determined based on value in use
calculations. This review assessed whether the carrying value of
goodwill was supported by the net present value of future cash
flows derived from assets using a projection period of three years
for each CGU based on approved budget numbers. The sources of the
assumptions used in making the assessment are as follows:
-- Growth rates are internal forecasts based on both internal and external market information.
-- Margins reflect past experience, adjusted for expected changes.
-- Terminal growth rates based on management's estimate of
future long-term average growth rates.
-- Discount rates based on Group WACC, adjusted where appropriate.
Annual EBITDA growth rates of 2.25% have been assumed in
perpetuity beyond year three. The pre-tax weighted average costs of
capital used to discount the future cash flows to their present
values are Middle East 10% (2015: 10%), USA 17% (2015: 17%), Nordic
13% (2015: 13%), Germany 15% (2015: 15%) and Asia Pacific 12%
(2015: 12%).
Management has considered reasonable possible changes in key
assumptions and performed sensitivity analyses under these
scenarios. This analysis shows that sufficient headroom exists and
would not give rise to any further impairment.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
8 OTHER INTANGIBLE ASSETS
Software
and Customer Product
Consumer software contracts Patents and Order development
panel development and lists trademarks backlog costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
At 1 August 2014
Cost 10,917 14,106 4,485 2,907 210 969 33,594
Accumulated
amortisation (9,078) (8,953) (2,279) (2,132) (210) (621) (23,273)
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Net book amount 1,839 5,153 2,206 775 - 348 10,321
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Year ended 31 July
2015
Opening net book
amount 1,839 5,153 2,206 775 - 348 10,321
Additions:
Separately
acquired 1,455 762 - 38 - 41 2,296
Internally
developed - 2,335 - - - - 2,335
Amortisation
charge:
Business
combinations - (206) (465) (317) - - (988)
Separately
acquired (1,102) (683) - - - (133) (1,918)
Internally
developed - (1,842) - - - (17) (1,859)
Disposals - (12) - - - - (12)
Exchange
differences 5 82 108 (30) - 12 177
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Closing net book
amount 2,197 5,589 1,849 466 - 251 10,352
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
At 31 July 2015
Cost 12,182 16,329 4,576 2,869 - 988 36,944
Accumulated
amortisation (9,985) (10,740) (2,727) (2,403) - (737) (26,592)
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Net book amount 2,197 5,589 1,849 466 - 251 10,352
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Year ended 31 July
2016
Opening net book
amount 2,197 5,589 1,849 466 - 251 10,352
Reclassifications - 80 - - - (80) -
Additions:
Separately
acquired 1,979 391 - 49 - 106 2,525
Internally
developed - 2,555 - - - - 2,555
Amortisation
charge:
Business
combinations - (128) (465) (169) - - (762)
Separately
acquired (1,574) (572) - (3) - (166) (2,315)
Internally
developed - (2,490) - - - - (2,490)
Disposals - - - - - - -
Exchange
differences 312 211 283 48 - 20 874
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
Closing net book
amount 2,914 5,636 1,667 391 - 131 10,739
------------------ ----------- ----------- ---------- ----------- ----------- ----------- --------
At 31 July 2016
Cost 16,081 19,901 5,418 3,439 - 962 45,801
Accumulated
amortisation (13,167) (14,265) (3,751) (3,048) - (831) (35,062)
------------------ ----------- ----------- ---------- ----------- ----------- ----------- ----------
Net book amount 2,914 5,636 1,667 391 - 131 10,739
------------------ ----------- ----------- ---------- ----------- ----------- ----------- ----------
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
9 PROPERTY, PLANT AND EQUIPMENT
Leasehold
Freehold property Computer Fixtures Motor
property improvements equipment and fittings vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- ------------- ---------- ------------- --------- --------
At 31 July 2014
Cost 1,305 799 2,443 1,100 72 5,719
Accumulated depreciation (257) (331) (1,857) (767) (18) (3,230)
------------------------- --------- ------------- ---------- ------------- --------- --------
Net book amount 1,048 468 586 333 54 2,489
------------------------- --------- ------------- ---------- ------------- --------- --------
Year ended 31 July 2015
Opening net book amount 1,048 468 586 333 54 2,489
Additions:
Separately acquired - 337 468 294 24 1,123
Disposals - - - (37) - (37)
Depreciation (49) (130) (385) (117) (22) (703)
Exchange differences 88 3 2 3 5 101
------------------------- --------- ------------- ---------- ------------- --------- --------
Closing net book amount 1,087 678 671 476 61 2,973
------------------------- --------- ------------- ---------- ------------- --------- --------
At 31 July 2015
Cost 1,416 1,011 2,376 1,302 103 6,208
Accumulated depreciation (329) (333) (1,705) (826) (42) (3,235)
------------------------- --------- ------------- ---------- ------------- --------- --------
Net book amount 1,087 678 671 476 61 2,973
------------------------- --------- ------------- ---------- ------------- --------- --------
Year ended 31 July 2016
Opening net book amount 1,087 678 671 476 61 2,973
Additions:
Separately acquired - 178 576 249 - 1,003
Disposals - (7) - - - (7)
Depreciation (75) (176) (398) (144) (26) (819)
Exchange differences 184 73 81 72 8 418
------------------------- --------- ------------- ---------- ------------- --------- --------
Closing net book amount 1,196 746 930 653 43 3,568
------------------------- --------- ------------- ---------- ------------- --------- --------
At 31 July 2016
Cost 1,667 1,248 3,082 1,692 121 7,810
Accumulated depreciation (471) (502) (2,152) (1,039) (78) (4,242)
------------------------- --------- ------------- ---------- ------------- --------- --------
Net book amount 1,196 746 930 653 43 3,568
------------------------- --------- ------------- ---------- ------------- --------- --------
All property, plant and equipment disclosed above, with the
exception of those items held under lease purchase agreements, are
free from restrictions on title. No property, plant and equipment
either in 2016 or 2015 has been pledged as security against the
liabilities of the Group.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
The net book value of assets held under finance leases is as
follows:
Computer Fixtures
equipment and fittings Total
GBP'000 GBP'000 GBP'000
------------------------- ---------- ------------- --------
At 31 July 2015
Cost 48 28 76
Accumulated depreciation (32) (8) (40)
---------------------------- ---------- ------------- --------
Net book amount 16 20 36
---------------------------- ---------- ------------- --------
At 31 July 2016
Cost 57 34 91
Accumulated depreciation (57) (17) (74)
---------------------------- ---------- ------------- --------
Net book amount - 17 17
---------------------------- ---------- ------------- --------
10 TRADE AND OTHER RECEIVABLES
31 July 2016 31 July 2015
GBP'000 GBP'000
-------------------------------- ------------ ------------
Trade receivables 16,542 13,957
Other receivables 2,004 1,056
Prepayments 1,646 1,204
Accrued income 8,925 6,525
-------------------------------- ------------ ------------
29,117 22,742
Provision for trade receivables (474) (235)
-------------------------------- ------------ ------------
28,643 22,507
-------------------------------- ------------ ------------
The Directors consider that the carrying amount of trade and
other receivables approximate to their fair value.
As at 31 July 2016, trade receivables of GBP10,101,000 (2015:
GBP7,408,000) were overdue but not impaired. These relate to a
number of customers for which there is no recent history of default
or any other indication that the receivable should not be fully
collectable. The ageing analysis of past due trade receivables
which are not impaired is as follows:
31 July 2016 31 July 2015
GBP'000 GBP'000
------------------------------- ------------ ------------
Up to three months overdue 4,752 3,846
Three to six months overdue 4,467 2,186
Six months to one year overdue 631 954
More than one year overdue 251 422
------------------------------- ------------ ------------
10,101 7,408
------------------------------- ------------ ------------
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
Movement on the Group provision for impairment of trade
receivables is as follows:
2016 2015
GBP'000 GBP'000
------------------------------------------------- -------- --------
Provision for receivables impairment at 1 August 235 230
Provision created in the year 368 189
Provision utilised in the year (159) (194)
Exchange differences 29 10
------------------------------------------------- -------- --------
Provision for receivables impairment at 31 July 474 235
------------------------------------------------- -------- --------
The creation and release of the provision for impaired
receivables has been included in the consolidated income statement.
The other classes within trade and other receivables do not contain
impaired assets. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of receivable
mentioned above. The Group does not hold any collateral as
security.
The average length of time taken by customers to settle
receivables is 59 days (2015: 56 days). Concentrations of credit
risk do exist with certain clients with which we have trading
relationships but none has a history of default and all command a
certain stature within the marketplace which minimises any
potential risk of default. Material balances (defined as greater
than GBP250,000 (2015: greater than GBP250,000)) represent 39% of
trade receivables (2015: 28%).
At 31 July 2016, GBPnil (2015: GBP397,000) of the trade and
other receivables of YouGov Nordic and Baltic A/S were used as
security against a loan and revolving overdraft facility held by
YouGov Nordic and Baltic A/S.
11 TRADE AND OTHER PAYABLES
31 July 2016 31 July 2015
GBP'000 GBP'000
---------------- ------------ ------------
Trade payables 1,557 2,354
Accruals 11,295 7,626
Deferred Income 9,399 5,948
Other payables 3,588 3,114
---------------- ------------ ------------
25,839 19,042
---------------- ------------ ------------
Included within other creditors are GBP56,000 (2015: GBP45,000)
of contributions due in respect of defined contribution pension
schemes.
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2016
12 CONTINGENT CONSIDERATION
Definitive Decision
Insights Fuel Total
GBP'000 GBP'000 GBP'000
---------------------------------------- ---------- -------- --------
At 1 August 2014 298 169 467
Settled during the year (330) - (330)
Released during the year - (133) (133)
Discount unwinding 8 - 8
Foreign exchange differences 24 - 24
---------------------------------------- ---------- -------- --------
Balance at 31 July 2015 - 36 36
---------------------------------------- ---------- -------- --------
Included within current liabilities - - -
Included within non-current liabilities - 36 36
---------------------------------------- ---------- -------- --------
Settled during the year - - -
Released during the year - (36) (36)
Discount unwinding - - -
Foreign exchange differences - - -
---------------------------------------- ---------- -------- --------
Balance at 31 July 2016 - - -
---------------------------------------- ---------- -------- --------
Included within current liabilities - - -
Included within non-current liabilities - - -
---------------------------------------- ---------- -------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAFENELSKFFF
(END) Dow Jones Newswires
October 10, 2016 02:00 ET (06:00 GMT)
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