TIDMYOU
RNS Number : 4498P
YouGov PLC
19 October 2021
19 October 2021
YouGov plc
("YouGov" or the "Group")
Full Year Results for the year ended 31 July 2021
- Strong performance across all divisions and geographies driven
by continuous client demand
- Ongoing investment in all business areas to support strategic
growth
- Sales pipeline remains encouraging, giving YouGov confidence
in its FY22 growth prospects
Summary of Audited Results
--------------
Year to Year to Change % Underlying(1)
31 July 31 July Change %
2021 2020
GBPm GBPm
--------- --------- --------- --------------
Revenue 169.0 152.4 11% 18%
--------- --------- --------- --------------
Adjusted Operating Profit(2) 25.5 21.8 17% 32%
--------- --------- --------- --------------
Adjusted Operating Profit
Margin(2) (%) 15.1% 14.3% 80bps 13%
--------- --------- --------- --------------
Statutory Operating Profit 19.0 15.2 25 % -
--------- --------- --------- --------------
Adjusted Profit before Tax(2) 31.2 25.7 21 % 35%
--------- --------- --------- --------------
Statutory Profit before
Tax 18.9 15.2 24% -
--------- --------- --------- --------------
Adjusted Earnings per Share(2) 20.8p 18.1p 15 % 32%
--------- --------- --------- --------------
Statutory Basic Earnings
per Share 10.6p 9.0p 18% -
--------- --------- --------- --------------
1 Defined as growth in business excluding impact of current and
prior period acquisitions and business closures, and movement in
exchange rates .
2 Defined in the explanation of non-IFRS measures below.
Financial highlights
-- Revenue growth of 11% (FY20: 12%) with underlying(1) growth
of 18% on the back of strong delivery in the second half of the
financial year
-- Underlying(1) operating profit (excluding impact of planned
Kurdistan closure and foreign exchange movements) was up by 32%,
representing an underlying(1) operating profit margin of 16% (FY20:
14%).
o This growth was driven by all three divisions and despite
absorption of an increased non-cash share-based payment charge of
5.1m (FY20: GBP2.8m)
-- Statutory operating profit up 25% to GBP19.0m (FY20:
GBP15.2m) including separately reported items charge of GBP6.5m in
respect of completed acquisitions
-- Adjusted profit before tax(2) (excluding exceptional costs
and share-based payment charge) up by 21% to GBP31.2m (FY20:
GBP25.7m)
-- Adjusted earnings per share(2) up by 15% to 20.8p (FY20: 18.1p)
-- Strong cash conversion of 123% (FY20: 104%), enabling us to
continue investing in the business
-- Robust balance sheet maintained with net cash at year end of
GBP35.5m (31 July 2020: GBP35.3m) and no debt
-- Proposed dividend increase of 20% to 6.0p per share (FY20: 5.0p)
Operational Highlights
-- Strong momentum continues in Data Products and Custom
Research, with bundling of sales between these two divisions,
resulting in larger and more strategic long-term deals signed
during the period, while Data Services saw excellent growth
o Data Products revenue increased by 13% (18% from underlying(1)
business) to GBP58.0m following a good recovery in the second half
of the year and strong contribution from Mainland Europe
o Data Services revenue increased by 20% (22% from underlying(1)
business) to GBP45.5m, following continued strong client demand for
more tactical, fast turnaround projects across all geographies
o Custom Research revenue increased by 2% (12% from
underlying(1) business) to GBP65.6m, as the planned closure of the
Kurdistan operations was offset by stellar performance in the
US
-- Broad-based growth across all geographies, with the US and
Mainland Europe continuing to perform exceptionally well on the
back of large contract wins
-- Number of investments made during the year to drive growth:
o I ncreased investment of GBP9.4m (FY20: GBP8.6m) towards the
development of our technology and tools that will drive future
growth
o Launched several new products throughout the year including
YouGov Safe, our fully opt-in, GDPR & CCPA(3) compliant data
marketplace
o Significant investment of GBP11.7m (FY20: GBP8.9m) in the
expansion of our panel into 15 new markets resulting in the number
of registered members growing 53% to 17.5m
o Continued to invest prudently in new geographies to expand our
regional capabilities and better serve global clients by
establishing our presence in Latin America via commencement of
operations in Brazil
o Completed several bolt-on acquisitions such as Open Banking
start-up Lean App and research and data insights companies in
Turkey, Australia and Canada
Post-period highlights
-- Acquisition of the UK-based ad tech company, Rezonence, as we
continue to enhance our ethical activation capabilities and expand
our potential reach
-- Successful completion of the first phase of the development
of the YouGov Platform, including the unification of our Direct
member base with the traditional YouGov panel and rollout of our
new member app
Outlook
-- Encouraging start to the new financial year, with a healthy
sales pipeline and continued strong momentum
-- Investment in our panel, technology and platforms to continue, albeit in line with FY21
-- Trading in the current year has started in line with the Board's expectations
Stephan Shakespeare, Chief Executive, said:
"We are pleased to end this financial year in line with our
expectations, demonstrating sustained growth despite the continuing
disruption caused by the pandemic. This is testament to the
resilience of our business model, the hard work of our people and
heightened demand for YouGov's tailored solutions, providing
valuable opinions and consumer insights to help our clients make
informed decisions.
"YouGov also continues to demonstrate momentum on the stated
strategy as we enter the third year of our second long-term
strategic growth plan. We believe that the investments we made in
the first half of our plan have placed us in a strong position for
the final two years.
"We have started off the new financial year well. We expect
current positive trends to continue in the coming months which
gives us confidence for the future."
Analyst presentation
A copy of the presentation will be available online at
https://corporate.yougov.com/investors/presentations/ shortly after
the full year results announcement is live on the Regulatory News
Service (RNS).
Forward looking statements
Certain statements in this financial report are forward looking.
Although the Group believes that the expectations reflected in
these forward-looking statements are reasonable, we can give no
assurance that these expectations will prove to have been correct.
As these statements involve risks and uncertainties, actual results
may differ materially from those expressed or implied by these
forward-looking statements.
We undertake no obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise.
1 Defined as growth in business excluding impact of current and
prior period acquisitions and business closures, and movement in
exchange rates .
2 Defined in the explanation of non-IFRS measures below.
3 The EU General Data Protection Regulation ("GDPR") and the
California Consumer Privacy Act ("CCPA").
Enquiries:
YouGov plc
Stephan Shakespeare / Alex McIntosh / Hannah 020 7012
Jethwani 6000
FTI Consulting 020 3727
Charles Palmer / Elena Kalinskaya 1000
Numis Securities Limited (NOMAD and Joint
broker) 020 7260
Nick Westlake / Hugo Rubinstein / Matt Lewis 1000
Berenberg (Joint Broker) 020 3207
Mark Whitmore / Marie Moy / Alix Mecklenburg-Solodkoff 7800
About YouGov
YouGov is an international research and data analytics
group.
Our mission is to supply a continuous stream of accurate data
into what the world thinks, so that organisations can better serve
the communities that sustain them.
Our over 17 million registered members provide us with a highly
engaged proprietary panel that delivers thousands of data points on
consumer opinions, attitudes and behaviour on a daily basis. We
combine this continuous stream of data with our research expertise
to provide insights that enable intelligent decision-making and
informed conversations.
YouGov's integrated suite of products, services and tools
operates as a systematic platform serving YouGov data and
intelligence for all stages of the marketing workflow. Our
ground-breaking syndicated Data Products include the daily brand
perception tracker, YouGov BrandIndex, and the media planning and
segmentation tool, YouGov Profiles. Data Services comprises our
market-leading YouGov RealTime service which provides a fast and
cost-effective solution for reaching nationally representative and
specialist samples. YouGov's Custom Research division offers a wide
range of quantitative and qualitative research, tailored by sector
specialist teams to meet clients' specific requirements.
With operations in the UK, the Americas, Europe, the Middle
East, India and Asia Pacific, YouGov has one of the world's largest
research networks.
YouGov
Best panel
Best data
Best tools
For further information visit yougov.com.
Chair's Statement
YouGov is an international data and analytics group. We provide
our clients with data and insights to help them plan, develop and
evaluate the impact of their marketing and communication
activities. We now employ over 1,350 people worldwide, operating
from 37 offices across 21 countries and serving clients in more
than 40 national markets. We operate a proprietary, high-quality
global panel of over 17 million registered members who share their
data with us in ways that are fully compliant with data protection,
privacy and security laws.
The entirety of the FY21 trading period has seen prolonged
disruption from the global pandemic. The extraordinary
circumstances created by the spread of the coronavirus have thrown
up both challenges and opportunities for YouGov. I am pleased to
report that, despite this disruption, YouGov has reported strong
trading results and achieved the Board's expectations for the year.
We have continued to monitor the situation in our individual
markets and, following extensive assessments, continue to support
our workforce in returning to offices where it is safe and possible
to do so.
Results and dividend
Group revenues were up 11% in reported terms to GBP169.0m (18%
up from underlying(1) business), while adjusted operating profit(2)
increased to GBP25.5m, up by 17% on the prior financial year.
Considering the Group remains profitable and cash generative,
YouGov will be maintaining its progressive dividend policy. In line
with this, the Board is pleased to recommend a dividend increase of
20% to 6.0 pence per share payable on 13 December 2021 to
shareholders on the register as at 3 December 2021.
Outlook
While the macro backdrop and operating environment remains
challenging, YouGov has started the new financial year well and
trading is in line with the Board's expectations. With a robust
balance sheet and continued client demand for our products and
services, we remain well placed for future growth.
Strategic direction
YouGov has significantly expanded its geographic reach over the
past year and is increasingly seeking to build long-term
relationships with clients to become the vendor of choice and
trusted business partner. We provide clients access to our
unrivalled datasets, a range of software tools and highly
proficient researchers to enable them to generate market research
insights which become a fundamental part of their management
process. Our products support the development, testing, placing and
assessment of a wide range of communication campaigns.
We continue to use our curated and proprietary internet-based
panels to carry out tracking and ad-hoc research assignments as
well as build out our subscription-based syndicated data products.
While we have made significant progress on our stated strategy, we
are continuing to invest in our technological platform and
organisational infrastructure to deliver on our ambitions.
Long-term growth plans and incentives
The financial year to 31 July 2021 was the second in our current
long-term strategic growth plan ("FYP2"). As previously announced,
this plan sets challenging targets including to double Group
revenue over the plan period (which runs from 1 August 2019 to 31
July 2023) and to achieve compound annual adjusted earnings per
share(2) ("EPS") growth in excess of 30%.
The stretching FYP2 targets underpin the current long-term
incentive plan ("LTIP 2019") which was designed to align the
interests of shareholders and executives with full vesting
requiring compound annual adjusted EPS growth of 35% by 31 July
2023. Despite the turmoil created by the pandemic, the Board
believes that the FYP2 management targets remain ambitious but
achievable.
Board Composition and Succession Planning
In 2022, I will be standing down from the role of Non-Executive
Chair. The Board has appointed the executive search firm, Egon
Zehnder, to advise on the succession process. YouGov has grown very
rapidly in recent years, therefore we are taking this opportunity
to do a thorough external review of our Board in terms of process,
composition and effectiveness. Additionally, we have tasked our
advisors with considering all aspects of the senior management
structure, skills and succession planning. The goal is to ensure
YouGov has the right people in the right positions for its next
phase of growth.
A well-positioned company
During this financial year YouGov celebrated its 21st
anniversary, having been founded by Stephan Shakespeare and Nadhim
Zahawi in 2000. YouGov began its journey as an internet-based, UK
polling company and has since evolved into a world-class global
data analytics provider. When I joined the YouGov Board in 2007,
the Group's market capitalization was approximately GBP130m and we
had about 80 members of staff. I am extremely proud to say that we
started FY22 with more than 1,350 employees and a market
capitalisation exceeding GBP1.3bn.
YouGov's success is largely the function of the hard work,
commitment and talent of our teams worldwide. On behalf of our
shareholders, I would like to thank them for their role in helping
the Company achieve this extraordinary feat and for their continued
support.
Roger Parry CBE
Chair
19 October 2021
1 Defined as growth in business excluding impact of current and
prior period acquisitions and business closures, and movement in
exchange rates .
2 Defined in the explanation of non-IFRS measures below.
Chief Executive Officer's Review
We are proud to deliver another year of strong growth and cash
generation for YouGov. Despite the ongoing pandemic throughout the
year, we were able to continue to achieve underlying(1) growth in
line with pre-pandemic levels. YouGov reported revenue of GBP169.
0m, up 11% and adjusted operating profit(2) of GBP25.5m, up 17%.
Our strong performance was driven by ongoing demand for our
syndicated data products, solid uptake of our fast-turnaround
survey services, and large client wins utilising our connected data
research solutions.
We continue to see strong renewal rates for our subscription
products and have successfully reorganised our sales structure to
ensure we are able to capitalise on the cross-sell opportunities
that will support our long-term growth.
The key drivers of our robust performance include:
-- Our resilient business model: Our ability to meet clients'
research needs despite the uncertainties caused by the pandemic has
helped strengthen our existing client relationships and expand our
client base.
-- Our global expansion: Expanding our reach into 15 new markets
has given us the required scale to target long-term, strategic
projects with large, multi-national accounts.
-- Our sector expertise: The recruitment of several new sector
heads with deep knowledge of their respective industries has
allowed us to enhance the YouGov Cube with sector-specific data and
win new clients.
-- Our global infrastructure : Furthering the use of our Centres
of Excellence has enabled us to realise operational efficiencies
and manage our cost base more effectively.
As the data analytics and market research industry continues its
shift towards the increased use of technology, we are advancing our
technological capabilities to ensure we remain ahead of the market.
As part of this, we continued the evolution of our product suite by
bringing all our products and services under the umbrella of a
unified YouGov Platform. Once fully rolled out, this will allow
clients to seamlessly move between our data products, run research
surveys, analyse the findings, view custom trackers and conduct
marketing activation, all within a single sign-on platform.
Strategic Direction - current long-term strategic growth plan
("FYP2")
Our vision is for YouGov to be the world's leading provider of
marketing and opinion data. We want YouGov data to be a valued
public resource used by hundreds of millions of people on a daily
basis, enabling intelligent decision-making and informed
conversations.
We have entered the second half of our current long-term growth
plan and continue to execute it in line with our expectations. As
previously announced, the ambitious long-term incentive plan
("LTIP") performance targets to incentivise senior management
through to 2023 are:
-- double Group revenue;
-- double Group adjusted operating profit margin(2) ; and
-- achieve an adjusted earnings per share(2) compound annual growth rate in excess of 30%.
As previously disclosed, we had designated the first half of the
long-term growth plan as the investment phase. In this phase we
invested heavily in our panels, technologies, platforms, support
functions and markets to enable us to scale further and make the
most of the opportunities we see in our markets. We have now moved
to the second half of the plan , which is focussed on execution and
capitalising on the foundation we have built. Our three strategic
pillars, Data Integration, Public Data and Ethical Activation,
remain unchanged.
Delivering on our three strategic pillars
Data Integration
Strategic focus: Fully integrating custom research and client
service with our data products and tools to create new value from
existing data and open up new revenue streams through
customisation
-- Progress made against this pillar during the year:
o Completed the integration of YouGov Direct, YouGov Chat and
YouGov Safe with our traditional research panel providing a
smoother member and client experience
o Launched sector-specific modules of our flagship products to
target new clients through increased relevance
o Combined the Data Services and Custom Research client services
functions to ensure our researchers can support clients more
efficiently
o Developed new, templated solutions that blend the depth of
custom research with the cost-effectiveness and speed of syndicated
data
Public Data
Strategic focus: Expanding YouGov Public Data as a public
service, for brand reputation, panel engagement and showcasing our
data
-- Progress m ade against this pillar during the year:
o Continued to support academic and health institutions and
charitable organisations with free market research data
o Provided extensive coverage of the US Presidential Election,
including online polling data based on our MRP (Multi-level
Regression with Post-stratification) modelling
o Published data around the COVID-19 vaccine programmes globally
to help governments understand attitudes and behaviours
Ethical Activation
Strategic focus: Enabling marketing activation on our platform
with a focus on personal data protection and self-service
research
-- Progress made against this pillar during the year:
o Continued the roll-out of YouGov Direct into Australia,
Singapore, France and Germany
o Developed and launched YouGov Safe in the US and UK, combining
observed online behaviours and transactions with attitudinal
insights from YouGov's flagship YouGov Profiles tool to provide
three-dimensional consumer intelligence data
o Acquired Lean App to enrich the YouGov Cube with financial
transaction data to provide greater insight into verified
behavioural data
Focus on operations
As we continue our evolution into a platform, both in the
technological sense and the business-model sense, we identified the
need to reshape our organisation to ensure we have the right
structure in place to achieve our ambitions. During the year, we
completed the reshuffle of our sales structure to delineate between
client account managers and new business sales to ensure we are
acquiring new clients while taking a bigger share of our existing
clients' research budgets.
We also continue to expand the role played by our shared service
centres (called Centres of Excellence or CenX) in our day-to-day
operations. With the right sales and client service structure now
in place, we intend to increase the use of our CenX in the delivery
of our data products and research services in the coming years.
COVID-19 response
While the COVID-19 pandemic has caused much disruption, it has
also taught us to be a more agile, innovative and stronger
organisation. We have carefully considered government regulations
and the needs of our employees when drawing up plans on how we can
safely return to our offices.
We look forward to returning to normal operations in the coming
year should the conditions continue to improve but we are confident
that we will be able to deliver in the event of any further
disruption caused by the pandemic.
The YouGov management team would like to thank all our employees
for their hard work and continued support of our clients in such
extraordinary circumstances.
Environmental, social and governance (ESG)
Our commitment to ESG is core to what we do. We operate lawfully
and ethically in all areas of ESG relevant to our business, from
how we collect data from panellists, and how we engage and develop
our workforce, to the design of our research and how we service our
clients.
YouGov's core mission is to give people a voice by measuring and
analysing their opinions and behaviours and reporting the findings
accurately and free from bias. Our commitment to Public Data,
providing free access to vast amounts of research, is at the centre
of our social mission and we are proud to have contributed valuable
data to several non-profit organisations.
While our environmental footprint is minimal given our digital
business model, we strive to limit carbon emissions and waste at
our offices. As part of our 21(st) birthday celebrations we were
delighted to donate to World Land Trust to plant 1,000 new trees,
contributing to rebuilding forest ecosystems. Additionally, we
launched our Group Environmental Policy during the year as well as
publishing our first ESG Roadmap, which sets out our commitment to
good ESG practices.
We are committed to cultivating a diverse workforce, keeping our
employees engaged and giving them opportunities to grow with the
business. With the COVID-19 pandemic taking its toll on the world,
we have endeavoured to play our part as an organisation. From
providing our staff with extensive wellbeing resources to
collaborating with mental health charities to better understand
priorities in the mental health agenda, we continue our efforts to
be a more socially responsible employer.
Governance has a key role in our strategic plan. Our governance
frameworks allow us to safeguard the valuable data that we collect
from our panellists on a daily basis. In conjunction with our
external assurance partner, KPMG, we have been reviewing our
internal systems and controls and are confident we have the right
frameworks in place to lead us into the next phase of our
growth.
Current trading and outlook
Strong trading momentum has continued across all our divisions
in the new financial year, giving us confidence in our strategy.
This momentum is supported by positive market trends and a healthy
sales pipeline.
We believe the investments we have made this financial year have
put us in a strong position and we are now focussed on monetising
those investments. Given the strength of our business model, strong
cash balances and no debt, we will continue to invest prudently
where necessary but expect capital expenditures to stabilise going
forward.
We are excited about the opportunities lying ahead and
delivering shareholder value as we execute on our long-term growth
plan.
We thank all our registered members, partners, clients, and
employees for their ongoing contribution and commitment to YouGov's
continued success in these challenging times.
Stephan Shakespeare
Chief Executive Officer
19 October 2021
1 Defined as growth in business excluding impact of current and
prior period acquisitions and business closures, and movement in
exchange rates .
2 Defined in the explanation of non-IFRS measures below.
Chief Financial Officer's Review
The Group achieved strong results in the 12 months to 31 July
2021 as we continued to execute on our current long-term strategic
growth plan which ends on 31 July 2023. The business continued to
invest in key areas and has put in place the right building blocks
to support longer term growth.
Total Group revenue in the period rose to GBP169.0m, compared to
GBP152.4m in the 12 months to 31 July 2020, driven by all three
reporting divisions and all geographies on an underlying(1) basis.
Growth was 18% on an underlying(1) basis compared to the prior
period (but 11% in reported terms due to the planned closure of the
Kurdistan business and the appreciation of the UK Sterling against
the US Dollar).
Adjusted operating margins and organic growth
Gross margins remained stable at 84%, as higher operational
leverage from the Data Products division was offset by higher
contribution from our lower-margin Data Services business.
Group operating costs (excluding separately reported items) of
GBP117.3m (FY20: GBP107.2m) increased by 9% in reported terms.
Adjusted operating profit(2) increased by 17% to GBP25.5m,
representing an improvement in the adjusted operating margin to
15.1% (FY20: 14.3%), despite the impact of the Kurdistan business
closure.
Underlying (1) operating profit (excluding acquisitions and
Kurdistan impacts, with exchange rates held constant) increased to
GBP27.1m, representing growth of 32% over the prior year period.
Underlying (1) operating profit margin has increased from 14% in
FY20 to 16% in FY21. The statutory operating profit increased to
GBP19.0m (FY20: GBP15.2m), after charging other separately reported
items of GBP6.5m (FY20: GBP6.6m).
Year to Year to
31 July 2021 31 July 2020
GBPm GBPm
Underlying(1) operating
profit 27.1 20.5
---------------------- ---------------------------
FX impact (1.1) -
---------------------- ---------------------------
Acquisitions 0.1 -
---------------------- ---------------------------
Kurdistan closure (0.6) 1.3
---------------------- ---------------------------
Adjusted operating profit(2) 25.5 21.8
---------------------- ---------------------------
Separately reported items (6.5) (6.6)
---------------------- ---------------------------
Statutory operating profit 19.0 15.2
---------------------- ---------------------------
1 Defined as growth in business excluding impact of current and
prior period acquisitions, Kurdistan business closure, and movement
in exchange rates (i.e. current year performance calculated with
exchange rates held constant at prior year rates).
2 Defined in the explanation of non-IFRS measures below.
Performance by division
YouGov's lines of business fall into three divisions: Data
Products, Data Services and Custom Research.
Data Products
Our syndicated data products suite includes YouGov BrandIndex
and YouGov Profiles as well as newer sector-specific modules.
While the performance of our Data Products division was off to a
slower start at the beginning of the year due to a shift in the
sales structure, it has recovered well in the second half of the
year. Revenue from Data Products increased by 13% (18% growth in
underlying (1) terms) in the period. The adjusted operating profit
(2) from Data Products increased by 8% to GBP19.4m and the adjusted
operating margin declined slightly to 33%.
Geographically, the US remains the largest Data Products market
and grew by 10% in the period (18% from the underlying (1)
business). Mainland Europe saw considerable revenue growth of 30%
on the back of recent client wins, while the UK was more subdued at
9% growth.
Data Services
Our Data Services division consists of our fast-turnaround
research services, including our market-leading YouGov Omnibus
(known as YouGov RealTime in the UK and US).
Revenue from Data Services increased by 20% (22% in
underlying(1) terms) to GBP45.5m, as the division has capitalised
on strong client demand for tactical PR work throughout the year.
This revenue growth was broad-based across all geographies,
including a 25% increase in reported revenue in the US (35%
increase in underlying(1) terms), and a 18% increase in the UK,
where YouGov RealTime is the market leader. Mainland Europe, the
largest market for the division, also saw strong performance with
22% reported growth for the period.
The division's robust performance led to a 26% growth in
adjusted operating profit and the operating margin increased from
18% to 19%, benefitting from operating leverage.
Custom Research
Our Custom Research division includes tailored research projects
and tracking studies.
During the period, the division's revenue grew by 2% in reported
terms and by 12% in underlying(1) terms to GBP65.6m. The adjusted
operating profit(2) increased by 9% to GBP13.6m and the operating
margin expanded to 21%, despite the closure of the Kurdistan
business.
The reported performance of the Custom Research division was
impacted by the expected closure of operations in Kurdistan
resulting in a GBP4.3m reduction in revenue in the Middle East. In
the UK, revenue increased by 8% to GBP23.9m, while the US saw solid
performance, helped in part by the US election, recording 17%
growth (24% increase in underlying(1) terms) to GBP38.6m.
Revenue Year to Year to Revenue Underlying
31 July 31 July growth (1) revenue
2021 2020 % change
GBPm GBPm %
---------------------- --------- --------- -------- -------------
Data Products 58.0 51.3 13% 18%
--------- --------- -------- -------------
Data Services 45.5 37.8 20% 22%
--------- --------- -------- -------------
Custom Research 65. 6 64.6 2% 12%
--------- --------- -------- -------------
Intra-Group revenues (0.1) (1.3) - -
--------- --------- -------- -------------
Group 169.0 152.4 11% 18%
--------- --------- -------- -------------
Adjusted Operating Year to Year to Operating Operating Margin
Profit (2) 31 July 31 July Profit %
2021 2020 growth
GBPm GBPm %
Year to Year to
31 July 31 July
2021 2020
--------- ---------
Data Products 19.4 18.0 8% 33% 35%
--------- --------- ---------- --------- ---------
Data Services 8.8 7.0 26% 19% 18%
--------- --------- ---------- --------- ---------
Custom Research 13.6 12.5 9% 21% 20%
--------- --------- ---------- --------- ---------
Central costs (16.3) (15.7) 4% - -
--------- --------- ---------- --------- ---------
Group 25.5 21.8 17% 15% 14%
--------- --------- ---------- --------- ---------
Performance by geography
YouGov's geographic footprint spans the UK, Mainland Europe, the
Americas, Asia Pacific and the Middle East.
Revenue Year to Year to Revenue Underlying
31 July 31 July growth (1)
2021 2020 % revenue
GBPm GBPm change %
UK 52.1 47.2 10% 10%
--------- --------- -------- -----------
Americas 74.8 64.8 15% 23%
--------- --------- -------- -----------
Mainland Europe 30. 6 24.3 26% 25%
--------- --------- -------- -----------
Middle East 4. 9 8.8 (44%) 11%
--------- --------- -------- -----------
Asia Pacific 14.0 12.5 12% 15%
--------- --------- -------- -----------
Intra-Group revenues (7.4) (5.2) - -
--------- --------- -------- -----------
Group 169.0 152.4 11% 18%
--------- --------- -------- -----------
Adjusted Operating Year to Year to Operating Operating Margin
Profit (2) 31 July 31 Jul Profit %
2021 2020 growth
GBPm GBPm %
--------------------
Year to Year to
31 July 31 July
2021 2020
--------- ---------
UK 16. 6 15.4 8% 32% 33%
--------- -------- ---------- --------- ---------
Americas 23. 0 19.0 21% 31% 29%
--------- -------- ---------- --------- ---------
Mainland Europe 3.2 2.2 45% 10% 9%
--------- -------- ---------- --------- ---------
Middle East 0. 4 1.9 ( 79%) 8% 22%
--------- -------- ---------- --------- ---------
Asia Pacific (0.1) 0.3 - (1%) 2%
--------- -------- ---------- --------- ---------
Central costs (17. 6) (17.0) 4% - -
--------- -------- ---------- --------- ---------
Group 25.5 21.8 17% 15% 14%
--------- -------- ---------- --------- ---------
Panel development by geography
We continued to invest in our consumer panel, undertaking the
largest simultaneous expansion of the panel into 15 new markets
across Europe, South America, the Middle East and North Africa
during the year. This was largely on the back of client demand and
provides the Group with the global reach required to win large,
multi-national accounts. As at 31 July 2021, the total number of
registered panellists had increased to 17.5 million, compared to
11.5 million at 31 July 2020, as set out in the table below.
Region Panel size Panel size Change
at at %
31 July 2021 31 July 2020
millions millions
UK 2.50 1.83 37%
-------------- -------------- -------
Americas 6.35 4.21 51%
-------------- -------------- -------
Mainland Europe 3.64 1.92 90%
-------------- -------------- -------
MENA 2.18 1.58 38%
-------------- -------------- -------
Asia Pacific 2.81 1.92 46%
-------------- -------------- -------
Total 17.48 11.46 53%
-------------- -------------- -------
Group financial performance
Amortisation of intangible assets
In the 12 months to 31 July 2021, amortisation charges for
intangible assets of GBP15.3m were GBP4.6m higher than the previous
year. Amortisation of the consumer panel increased by GBP2.9m to
GBP7.1m, reflecting the increased investment made in the year to
expand the geographic reach of our panel. Amortisation of software
increased by GBP1.9m to GBP7.9m. GBP4.9m (FY20: GBP4.9m) of the
total software development charge related to assets created through
the Group's own internal development activities, GBP0.6m (FY20:
GBP0.3m) related to separately acquired assets and GBP2.4m (FY20:
GBP0.8m) was for amortisation on assets acquired through business
combinations.
Separately reported items
Year to Year to
31 July 31 July
2021 GBPm 2020 GBPm
Goodwill impairment - 2.1
----------- -----------
Acquisition-related costs 6.5 4.5
----------- -----------
Total separately reported
items 6.5 6.6
----------- -----------
Acquisition-related costs in the period comprise GBP6.5m of
contingent consideration treated as staff costs in respect of the
acquisitions of SMG Insight Limited, InConversation Media Limited,
Portent.io Limited, Charlton Insights Inc., Lean App Limited and
Faster Horses Pty Limited, and GBP0.3m of transactions costs in
respect of the newly acquired entities, offset by GBP0.3m income
from insurance rebate for SMG
Insight Limited litigation costs.
Impairment of goodwill in the prior year is in respect of the
Nordic business.
Acquisition-related costs in the prior year comprise GBP3.7m of
contingent consideration treated as staff costs in respect of the
acquisitions of Galaxy Research Pty Limited, SMG Insight Limited,
InConversation Media Limited and Portent.io Limited, a decrease of
GBP0.1m in contingent transaction costs in respect of Portent.io
Limited, a GBP0.2m increase in SMG consideration and a GBP0.7m
reduction in the fair value of the acquired SMG Insight Limited net
assets.
Analysis of operating profit and earnings per share
Adjusted profit before tax(2) of GBP31.2m was an increase of
GBP5.5m (21%) on the comparable result of GBP25.7m for the 12
months to 31 July 2020. The adjusted tax rate(2) increased to 27%
from 25% in the prior year. Statutory profit before tax of GBP18.9m
was reported compared to GBP15.2m in the year ended 31 July 2020,
an increase of 24%.
During the period adjusted earnings per share(2) grew by 15%
from 18.1p to 20.8p and statutory earnings per share increased from
9.0p to 10.6p.
31 July 31 July
2021 2020
GBPm GBPm
Adjusted operating profit(2) 25.5 21.8
Share-based payments 5.1 2.8
Social taxes payable on share-based payments 0.5 0.9
Imputed interest 0.1 0.1
Adjusted profit before tax(2) 31.2 25.7
Adjusted taxation(2) (8.4) (6. 5)
---------------------------------------------- -------- --------
Adjusted profit after tax(2) 22.8 19. 1
---------------------------------------------- -------- --------
Adjusted earnings per share (pence)(2) 20.8 p 18.1p
---------------------------------------------- -------- --------
Cash flow, capital expenditure and technology investment
The Group generated GBP56.6m (FY20: GBP38.7m) in cash from
operations (before paying interest and tax) including a GBP5.8m
(FY20: GBP0.2m) net working capital inflow; the cash conversion
rate (percentage of adjusted EBITDA(2) converted to cash) increased
from 104% to 123% of adjusted EBITDA(2) .
The Group invested GBP7.8m (FY20: GBP7.9m) in the continuing
development of our technology platform and increased the investment
in panel recruitment to GBP11.7m (FY20: GBP8.9m) for the year to
support continued global expansion. The geographic footprint of our
panel was broadened as new panels were established in 15 new
markets, mainly in Europe and Latin America, to meet the research
needs of our multi-national clients. Our investment in technology
continued across three main areas: websites and mobile applications
GBP1.1m, survey systems GBP1.9m, and GBP2.9m on our Crunch data
analytics tool. GBP1.6m (FY20: GBP0.7m) was also invested on
separately-acquired software tools. In addition GBP1.2m (FY20:
GBP1.1m) was spent on the purchase of property, plant and
equipment, resulting in a total investment in fixed assets of
GBP23.8m (FY20: GBP18.6m).
Total expenditure on intangible assets and property, plant and
equipment is shown below:
31 July 31 July
2021 2020
GBPm GBPm
------------------------------------------- -------- --------
Software development 9.4 8. 6
Panel recruitment 11.7 8.9
Other intangible assets 1.5 -
------------------------------------------- -------- --------
Total expenditure on intangible assets 22.6 17.5
Purchase of property, plant and equipment 1.2 1.1
------------------------------------------- -------- --------
Total capital expenditure 23.8 18.6
------------------------------------------- -------- --------
Other cash outflows included GBP9.8m (FY20: GBP7.4m) in
settlement of deferred consideration amounts due in respect of the
acquisitions of SMG Insight, InConversation Media and Portent.io,
GBP2.8m in respect of acquisitions made during the year and
taxation payments of GBP7.1m (FY20: GBP3.2m).
Net expenditure on financing activities of GBP11.5m (FY20: 9.7m)
included the dividend payment of GBP5.5m (FY20: GBP4.3m), the
purchase of treasury shares for GBP2.2m (FY20: GBP2.4m) and lease
payments of GBP3.9m (FY20: GBP3.0m).
Net cash balances at the year-end increased by GBP0.2m to
GBP35.5m. Net cash inflow in the year was GBP1.3m (FY20: GBP0.3m
outflow) and currency fluctuations in the year resulted in an
exchange loss of GBP1.1m (FY20: GBP2.3m).
Currency
The Group's results were affected by the net appreciation of the
UK Sterling, as its average exchange rate was 8% higher against the
US Dollar in this period than in the 12 months to 31 July 2020.
Movement against the Euro was effectively flat for the period. The
net impact of foreign exchange on the Group's adjusted operating
profit(2) was a decrease of GBP1.1m compared to calculation in
constant currency terms.
Balance sheet
As at 31 July 2021, total shareholders' funds increased from
GBP110.0m to GBP112.7m. Net assets increased from GBP109.3m to
GBP112.0m, with a minority interest of GBP0.7m accounting for the
difference. Net current assets decreased from GBP17.3m to GBP15.2m.
Current assets increased by GBP12.2m to GBP82.4m, mainly due to a
GBP6.5m increase in trade and other receivables, with debtor days
decreasing from 48 to 37. Current liabilities increased by GBP14.3m
to GBP67.2m, mainly due to an increase in provisions by GBP1.9m,
tax liabilities by GBP3.7m and trade and other payables by GBP9.3m,
with creditor days increasing from 24 days to 50 days at 31 July
2021. Non-current liabilities increased by GBP0.5m to GBP16.7m with
a reduction of GBP2.1m of contingent consideration payable in
respect of acquisitions offset by a GBP3.2m increase in long-term
lease liabilities.
Proposed dividend
The Board is recommending the payment of a final dividend of 6.0
pence per share for the year ended 31 July 2021. If shareholders
approve the dividend at the AGM (scheduled for 7 December 2021), it
will be paid on Monday 13 December 2021 to all shareholders who
were on the Register of Members at close of business on Friday 3
December 2021.
Alex McIntosh
Chief Financial Officer
19 October 2021
1 Defined as growth in business excluding impact of current and
prior period acquisitions and business closures, and movement in
exchange rates .
2 Defined in the explanation of non-IFRS measures below.
Explanation of non-IFRS measures
Financial measure How we define it Why we use it
Separately reported Items that in the Directors' Provides a more comparable
items judgement are one-off or basis to assess the
need to be disclosed separately year-to-year operational
by virtue of their size business performance
or incidence
--------------------------------- ---------------------------
Adjusted operating Operating profit excluding
profit separately reported items
--------------------------------- ---------------------------
Adjusted operating Adjusted operating profit
profit margin expressed as a percentage
of revenue
---------------------------------
Adjusted EBITDA Adjusted operating profit
before depreciation and
amortisation
---------------------------------
Adjusted profit Profit before tax before
before tax share based payment charges,
social taxes on share based
payments, imputed interest
and separately reported
items
--------------------------------- ---------------------------
Underlying growth Growth in business excluding
impact of current and prior
period acquisitions and
business closures, and
movement in exchange rates
(i.e. current year performance
calculated with exchange
rates held constant at
prior year rates).
--------------------------------- ---------------------------
Adjusted taxation Taxation due on the adjusted Provides a more comparable
profit before tax, thus basis to assess the
excluding the tax effect underlying tax rate
of 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 tax
after tax attributable less profit attributable
to owners of the to non-controlling interests
parent
--------------------------------- ---------------------------
Adjusted earnings Adjusted profit after tax
per share 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 change Shows the underlying
revenue change compared to prior year revenue change by
revenue in local currency eliminating the impact
translated at the current of foreign exchange
year average exchange rates rate movements
--------------------------------- ---------------------------
Cash conversion The ratio of cash generated Indicates the extent
from operations to adjusted to which the business
EBITDA. generates cash from
adjusted operating
profits
--------------------------------- ---------------------------
Reconciliation of non-IFRS measures
Adjusted Operating Profit(1) reconciliation Year to Year to Change
31 July 31 July %
2021 2020
GBPm GBPm
Statutory Operating Profit 19.0 15.2 25%
--------- --------- -------
Goodwill impairment - 2.1 -
--------- --------- -------
Acquisition-related costs 6.5 4.5 44%
--------- --------- -------
Adjusted Operating Profit 25.5 21.8 17%
--------- --------- -------
Adjusted EBITDA(1) reconciliation Year to Year to Change
31 July 31 July %
2021 2020
GBPm GBPm
Adjusted Operating Profit 25.5 21.8 17%
--------- --------- -------
Depreciation 5.1 4.5 13%
--------- --------- -------
Amortisation 15.3 10.7 43%
--------- --------- -------
Adjusted EBITDA 45.9 37.0 24%
--------- --------- -------
1 Defined in the explanation of non-IFRS
measures above.
Publication of Non-Statutory Accounts
The financial information relating to the year ended 31 July
2021 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
AUDITED CONSOLIDATED income statement
For the year ended 31 July 2021
2021 2020
=========================================
Note GBPm GBPm
========================================= ===== ======== ========
Revenue 1 169.0 152.4
Cost of sales (26.2) (23.4)
========================================= ===== ======== ========
Gross profit 142.8 129.0
Administrative expenses (123.8) (113.8)
========================================= ===== ======== ========
Operating profit 1 19.0 15.2
========================================= ===== ======== ========
Separately reported items 2 (6.5) (6.6)
========================================= ===== ======== ========
Adjusted operating profit 1 25.5 21.8
========================================= ===== ======== ========
Finance income 0.4 0.4
Finance costs (0.5) (0.4)
Profit before taxation 1 18.9 15.2
Taxation 3 (7.4) (5.8)
========================================= ===== ======== ========
Profit after taxation 1 11.5 9.4
========================================= ===== ======== ========
Attributable to:
- Owners of the parent 11.5 9.6
- Non-controlling interests - (0.2)
========================================= ===== ======== ========
11.5 9.4
========================================= ===== ======== ========
Earnings per share
Basic earnings per share attributable
to owners of the parent 5 10.6p 9.0p
Diluted earnings per share attributable
to owners of the parent 5 10.3p 8.5p
========================================= ===== ======== ========
All operations are continuing.
YOUGOV PLC
AUDITED CONSOLIDATED sTATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 July 2021
2021 2020
=============================================
GBPm GBPm
============================================= ====== ======
Profit for the year 11.5 9.4
Other comprehensive (expense):
Items that may be subsequently reclassified
to profit or loss
Currency translation differences (7.5) (4.8)
============================================== ====== ======
Other comprehensive (expense) for the year (7.5) (4.8)
============================================== ====== ======
Total comprehensive income for the year 4.0 4.6
============================================== ====== ======
Attributable to:
- Owners of the parent 4.0 4.8
- Non-controlling interests - (0.2)
============================================== ====== ======
Total comprehensive income for the year 4.0 4.6
============================================== ====== ======
Items in the statement above are disclosed net of tax.
YOUGOV PLC
AUDITED CONSOLIDATED sTATEMENT OF FINANCIAL POSITION
For the year ended 31 July 2021
2021 2020
========================================
Note GBPm GBPm
======================================== ===== ====== ======
Assets
Non-current assets
Goodwill 6 60.5 61.5
Other intangible assets 8 29.2 23.2
Property, plant and equipment 3.2 3.6
Right of use assets 12.1 8.9
Deferred tax assets 8.5 11.0
======================================== ===== ====== ======
Total non-current assets 113.5 108.2
======================================== ===== ====== ======
Current assets
Trade and other receivables 9 40.7 34.2
Current tax assets 6.2 0.7
Cash and cash equivalents 35.5 35.3
======================================== ===== ====== ======
Total current assets 82.4 70.2
======================================== ===== ====== ======
Total assets 195.9 178.4
======================================== ===== ====== ======
Liabilities
Current liabilities
Trade and other payables 10 47.8 38.5
Current tax liabilities 5.4 1.7
Contingent consideration 2.2 3.4
Provisions 8.7 6.8
Lease liabilities 3.1 2.5
======================================== ===== ====== ======
Total current liabilities 67.2 52.9
======================================== ===== ====== ======
Net current assets 15.2 17.3
======================================== ===== ====== ======
Non-current liabilities
Contingent consideration 0.9 3.0
Provisions 5.1 4.6
Lease liabilities 10.1 6.9
Deferred tax liabilities 0.6 1.7
======================================== ===== ====== ======
Total non-current liabilities 16.7 16.2
======================================== ===== ====== ======
Total liabilities 83.9 69.1
======================================== ===== ====== ======
Net assets 112.0 109.3
======================================== ===== ====== ======
Equity
Issued share capital 0.2 0.2
Share premium 31.5 31.4
Treasury reserve (2.3) (1.7)
Merger reserve 9.2 9.2
Foreign exchange reserve 7.6 15.1
Retained earnings 66.5 55.8
======================================== ===== ====== ======
Total equity attributable to owners of
the parent 112.7 110.0
Non-controlling interests in equity (0.7) (0.7)
======================================== ===== ====== ======
Total equity 112.0 109.3
======================================== ===== ====== ======
YOUGOV PLC
AUDITED CONSOLIDATED sTATEMENT OF CHANGES IN EQUITY
For the year ended 31 July 2021
Attributable to equity holders of the Company
=================================================================================
Issued Share Treasury Merger Foreign Retained Equity Non- Total
share premium reserve reserve exchange earnings attributable controlling
capital reserve to owners interests
of the in equity
parent
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Balance at
1 August
2019 0.2 31.4 (3.7) 9.2 19.9 51.0 108.0 (0.5) 107.5
Exchange
differences
on translation - - - - (4.8) - (4.8) - (4.8)
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Net loss
recognised
directly - - - - (4.8) - (4.8) - (4.8)
in equity
Profit/(Loss)
for the year - - - - - 9.6 9.6 (0.2) 9.4
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Total
comprehensive - - - - (4.8) 9.6 4.8 (0.2) 4.6
========= ========= ========= ========= ========== ========== ============= ============ ======
Income/(expense)
for the year
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Acquisition
of treasury
shares - - (2.4) - - - (2.4) - (2.4)
Treasury
shares used
to settle
share option
exercises - - 4.4 - - (4.4) - - -
Dividends
paid - - - - - (4.3) (4.3) - (4.3)
Share-based
payments - - - - - 2.8 2.8 - 2.8
Tax in relation
to share-based
payments - - - - - 1.1 1.1 - 1.1
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Total transactions
with owners
recognised
directly
in equity - - 2.0 - - (4.8) (2.8) - (2.8)
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Balance at
31 July 2020 0.2 31.4 (1.7) 9.2 15.1 55.8 110.0 (0.7) 109.3
Exchange
differences
on translation - - - - (7.5) - (7.5) - (7.5)
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Net loss
recognised
directly - - - - (7.5) - (7.5) - (7.5)
in equity
Profit for
the year - - - - - 11.5 11.5 - 11.5
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Total
comprehensive
income/(expense)
for the year - - - - (7.5) 11.5 4.0 - 4.0
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Issue of
shares - 0.1 - - - - 0.1 - 0.1
Acquisition
of treasury
shares - - (2.2) - - - (2.2) - (2.2)
Treasury
shares used
to settle
share option
exercises - - 1.6 - - (1.6) - - -
Dividends
paid - - - - - (5.5) (5.5) - (5.5)
Share-based
payments - - - - - 5.1 5.1 - 5.1
Tax in relation
to share-based
payments - - - - - 1.2 1.2 - 1.2
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Total transactions
with owners
recognised
directly
in equity - 0.1 (0.6) - - (0.8) (1.3) - (1.3)
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
Balance at
31 July 2021 0.2 31.5 ( 2.3) 9.2 7.6 66.5 112.7 ( 0.7) 112.0
=================== ========= ========= ========= ========= ========== ========== ============= ============ ======
YOUGOV PLC
AUDITED CONSOLIDATED sTATEMENT OF cash flows
For the year ended 31 July 2021
2021 2020
Note GBPm GBPm
========================================================== ======= =======
Cash flows from operating activities
Profit before taxation 18.9 15.2
Adjustments for:
Finance income (0.2) (0.4)
Finance costs 0.5 0.4
Amortisation of intangibles 8 15.3 10.7
Depreciation 5.1 4.5
Share-based payments 5.1 2.8
Other non-cash items (1) 6.1 5.3
(Increase) in trade and other receivables (6.5) (1.6)
Increase/(decrease) in trade and other payables 9.3 (0.2)
Increase in provisions 3.0 2.0
======================================================= ======= =======
Cash generated from operations 56.6 38.7
Interest paid (0.5) (0.3)
Income taxes paid (7.1) (3.2)
======================================================= ======= =======
Net cash generated from operating activities 49.0 35.2
======================================================= ======= =======
Cash flow from investing activities
Acquisition of subsidiaries (net of cash acquired) (2.8) -
Settlement of deferred consideration (9.8) (7.4)
Purchase of property, plant and equipment (1.2) (1.1)
Purchase of intangible assets 8 (22.6) (17.5)
Interest received 0.2 0.2
======================================================= ======= =======
(36.2
Net cash used in investing activities ) (25.8)
======================================================= ======= =======
Cash flows from financing activities
Proceeds from the issue of share capital 0.1 -
Principal element of lease payments (3.9) (3.0)
Dividends paid to shareholders (5.5) (4.3)
Purchase of treasury shares (2.2) (2.4)
======================================================= ======= =======
(11.5
Net cash used in financing activities ) (9.7)
======================================================= ======= =======
Net increase/(decrease) in cash and cash equivalents 1.3 (0.3)
Cash and cash equivalents at beginning of year 35.3 37.9
Exchange loss on cash and cash equivalents (1.1) (2.3)
======================================================= ======= =======
Cash and cash equivalents at end of year 35.5 35.3
======================================================= ======= =======
1. Includes GBP6.5m (2020: GBP3.7m) of contingent consideration
in respect of acquisitions treated as staff costs. For the year
ended 31 July 2020, it also included GBP0.2m increase in
acquisition consideration recognised in the income statement and a
GBP2.1m impairment of goodwill.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
Nature of operations
YouGov plc and subsidiaries' (the "Group") principal activity is
the provision of digital market research.
YouGov plc (the "Company") is the Group's ultimate Parent
Company. It is a public limited company incorporated and domiciled
in United Kingdom. The address of YouGov plc's registered office is
50 Featherstone Street, London EC1Y 8RT, United Kingdom. YouGov
plc's shares are listed on the Alternative Investment Market of the
London Stock Exchange.
YouGov plc's annual consolidated financial statements are
presented in UK Sterling, which is also the functional currency of
the Parent Company. Figures are rounded to the nearest million UK
Sterling, unless otherwise indicated.
Basis of preparation
The following audited financial information does not amount to
full financial statements within the meaning of Section 434 of
Companies Act 2006. The audited financial information has been
extracted from the Group's Annual Report and Financial Statements
for the year ended 31 July 2021.
The consolidated financial statements of YouGov plc are for the
year ended 31 July 2021. They have been prepared under the
historical cost convention modified for fair values under IFRS.
Financial liabilities, such as contingent consideration, are
measured at fair value. These consolidated financial statements
have been prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act
2006 applicable to companies reporting under IFRS.
Financial statements for the year ended 31 July 2020 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. Copies of the 2021
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.
Going concern
The Group meets its day-to-day working capital requirements
through its strong cash reserves. At 31 July 2021, the Group had a
healthy liquidity position with GBP35.5m of cash and cash
equivalents and no debt financing commitments. The Group has net
current assets of GBP15.2m and net assets of GBP112.0m as at 31
July 2021.
In assessing going concern, management have considered the
prolonged effects of the COVID-19 pandemic including the impact on
the Group's operations, budget for the year ended 31 July 2022 and
forecast for 2023. Since the start of the COVID-19 pandemic the
Group has not seen any significant slowdown in sales and has not
furloughed any staff or sought extended payment terms for its
obligations. However, given the uncertainty regarding the economy's
recovery from the COVID-19 pandemic, severe downside scenarios have
been also modelled where revenue targets are missed by up to 30%
due to reduced revenue from clients' delays and a slowdown in
securing new business. Even in these scenarios the Group has strong
liquidity, no external debt and many mitigating actions that would
allow it to meet its financial liabilities as they fall due. These
mitigating actions, should they be required, are all within
management's control and could include reducing new recruitment,
lowering commission or bonus payments, and reduced capital
expenditure.
The Directors therefore have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future. The Group therefore continues to adopt
the going concern basis in preparing its consolidated financial
statements.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
1 Segmental analysis
The Board of Directors (which is the "chief operating
decision-maker") primarily reviews information based on product
lines, being split as Syndicated services such as Data Products and
Non-syndicated services such as Custom Research and Data Services -
with supplemental geographical information.
Eliminations
Custom and unallocated
Research Data Products Data Services costs Group
2021 GBPm GBPm GBPm GBPm GBPm
========================= ========== ============== ============== ================= ========
Revenue
Recognised over
time 27.7 56.6 0.7 2.2 87.2
Recognised at a
point in time 37.9 1.4 44.8 (2.3) 81.8
------------------------- ========== ============== ============== ================= ========
Total revenue 65.6 58.0 45.5 (0.1) 169.0
Cost of sales (14.1) (4.1) (7.2) (0.8) (26.2)
========================= ========== ============== ============== ================= ========
Gross profit 51.5 53.9 38.3 (0.9) 142.8
Administrative expenses (37.9) (34.5) (29.5) (15.4) (117.3)
========================= ========== ============== ============== ================= ========
Adjusted operating
profit 13.6 19.4 8.8 (16.3) 25.5
Separately reported
items - - - (6.5) (6.5)
========================= ========== ============== ============== ================= ========
Operating profit 13.6 19.4 8.8 (22.8) 19.0
Finance income 0.4
Finance costs (0.5)
Profit before taxation 18.9
Taxation (7.4)
========================= ========== ============== ============== ================= ========
Profit after taxation 11.5
========================= ========== ============== ============== ================= ========
Eliminations
Custom and unallocated
Research Data Products Data Services costs Group
2020 GBPm GBPm GBPm GBPm GBPm
========================== ========== ============= ============= ================ =======
Revenue
Recognised over time 25.7 50.5 1.1 1.1 78.4
Recognised at a point
in time 38.9 0.8 36.7 (2.4) 74.0
-------------------------- ---------- ------------- ------------- ---------------- -------
Total revenue 64.6 51.3 37.8 (1.3) 152.4
Cost of sales (13.0) (4.2) (6.1) (0.1) (23.4)
========================== ========== ============= ============= ================ =======
Gross profit 51.6 47.1 31.7 (1.4) 129.0
Administrative expenses (39.1) (29.1) (24.7) (14.3) (107.2)
========================== ========== ============= ============= ================ =======
Adjusted operating profit 12.5 18.0 7.0 (15.7) 21.8
Separately reported
items - - - (6.6) (6.6)
========================== ========== ============= ============= ================ =======
Operating profit 12.5 18.0 7.0 (22.3) 15.2
Finance income 0.4
Finance costs (0.4)
Profit before taxation 15.2
Taxation (5.8)
========================== ========== ============= ============= ================ =======
Profit after taxation 9.4
========================== ========== ============= ============= ================ =======
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
1 Segmental analysis continued
Revenue and adjusted operating profit/(loss) by geography based
on the origin of the sale
2021 2020
===================== =====================
Revenue Adjusted Revenue Adjusted
operating operating
profit/ profit/
(loss) (loss)
GBPm GBPm GBPm GBPm
=================================== ======== =========== ======== ===========
UK 52.1 16.6 47.2 15.4
Americas (1) 74.8 23.0 64.8 19.0
Mainland Europe 30.6 3.2 24.3 2.2
Middle East 4.9 0.4 8.8 1.9
Asia Pacific 14.0 (0.1) 12.5 0.3
Intra-Group revenues/unallocated
costs (7.4) (17.6) (5.2) (17.0)
=================================== ======== =========== ======== ===========
Group 169.0 25.5 152.4 21.8
=================================== ======== =========== ======== ===========
1. Americas refers to the US and Canada.
2 Separately reported items
2021 2020
===========================
GBPm GBPm
=========================== ===== =====
Impairment of goodwill - 2.1
Acquisition-related costs 6.5 4.5
=========================== ===== =====
6.5 6.6
=========================== ===== =====
Acquisition-related costs in the year comprise GBP6.5m of
contingent consideration treated as staff costs in respect of the
acquisitions of SMG Insight Limited, InConversation Media Limited,
Portent.io Limited, Charlton Insights Inc., Lean App Limited and
Faster Horses Pty Limited, and GBP0.3m of transactions costs in
respect of the newly acquired entities as listed in Note 7, offset
by GBP0.3m income from insurance rebate for SMG Insight Limited
litigation costs.
Impairment of goodwill in the prior year is in respect of the
Nordic business, further details are provided in Note 6.
Acquisition-related costs in the prior year comprise GBP3.7m of
contingent consideration treated as staff costs in respect of the
acquisitions of Galaxy Research Pty Limited, SMG Insight Limited,
InConversation Media Limited and Portent.io Limited, a decrease of
GBP0.1m in contingent transaction costs in respect of Portent.io
Limited, a GBP0.2m increase in SMG consideration and a GBP0.7m
reduction in the fair value of the acquired SMG Insight Limited net
assets.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
3 Taxation
The taxation charge represents:
2021 2020
===================================================
GBPm GBPm
=================================================== ===== ======
Current tax on profits for the year 5.1 3.5
Adjustments in respect of prior years 0.6 0.9
=================================================== ===== ======
Total current tax charge 5.7 4.4
=================================================== ===== ======
Deferred tax:
Origination and reversal of temporary differences 1.0 2.0
Adjustments in respect of prior years 0.7 (0.2)
Impact of changes in tax rates - (0.4)
=================================================== ===== ======
Total deferred tax charge 1.7 1.4
=================================================== ===== ======
Total income statement tax charge 7.4 5.8
=================================================== ===== ======
The tax assessed for the year is higher (2020: higher) than the
standard rate of corporation tax in the UK.
The differences are explained below:
2021 2020
===================================================
GBPm GBPm
=================================================== ===== ======
Profit before taxation 18.9 15.2
=================================================== ===== ======
Tax charge calculated at Group's standard rate
of 19% (2020: 19%) 3.6 2.9
Variance in overseas tax rates 0.1 1.3
Impact of changes in tax rates - (0.4)
Research & development tax deduction 0.1 -
Expenses not deductible for tax purposes 2.3 0.8
Tax losses for which no deferred income tax asset
was recognised - 0.5
Adjustments in respect of prior years 1.3 0.7
=================================================== ===== ======
Total income statement tax charge for the year 7.4 5.8
=================================================== ===== ======
The Finance Act 2020 reversed previously planned corporation
rate reductions, with the existing 19% corporation tax rate
substantively enacted as continuing. The Budget on 3 March 2021
announced that the rate will remain at 19% until 1 April 2023, when
it will increase to 25%.
4 Dividend
On 14 December 2020, a final dividend in respect of the year
ended 31 July 2020 of GBP5,510,000 (5.0p per share) (2020:
GBP4,298,000 (4.0p per share)) was paid to shareholders. A dividend
in respect of the year ended 31 July 2021 of 6.0p per share,
amounting to a total dividend of GBP6,679,000, is to be proposed at
the Annual General Meeting on 07 December 2021. These financial
statements do not reflect this proposed dividend payable.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
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 potentially
dilutive Ordinary Shares.
The adjusted earnings per share has been calculated to reflect
the underlying profitability of the business by excluding
share-based payments and related employer's social costs, imputed
interest, impairment charges, other separately reported items and
any related tax effects as well as the derecognition of tax
losses.
2021 2020
======================================================
GBPm GBPm
====================================================== ======= ======
Profit after taxation attributable to equity holders
of the Parent Company 11.5 9.6
Add: share-based payments 5.1 2.8
Add: social taxes on share-based payments 0.5 0.9
Add: imputed interest 0.1 0.1
Add: separately reported items (Note 2) 6.5 6.6
Tax effect of the above adjustments and adjusting
tax items (1) (1.0) (0.7)
====================================================== ======= ======
Adjusted profit after taxation attributable to
equity holders of the Parent Company 22.7 19.3
====================================================== ======= ======
1. Adjusting tax items in prior year included a one-off charge
of GBP410,000 as a result of providing against Nordic tax
losses.
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
2021 2020
==================================================== ======= =======
Number of shares
Weighted average number of shares during the year:
('m shares)
- Basic 109.7 106.7
- Dilutive effect of share options 3.3 5.8
==================================================== ======= =======
- Diluted 113.0 112.5
==================================================== ======= =======
The adjustments have the following effect:
Basic earnings per share 10.6p 9.0p
Share-based payments 4.7p 2.6p
Social taxes on share-based payments 0.4p 0.9p
Imputed interest 0.1p 0.1p
Separately reported items 5.9p 6.2p
Tax effect of the above adjustments and adjusting
tax items (0.9p) (0.7p)
==================================================== ======= =======
Adjusted earnings per share 20.8p 18.1p
==================================================== ======= =======
Diluted earnings per share 10.3p 8.5p
Share-based payments 4.5p 2.5p
Social taxes on share-based payments 0.4p 0.8p
Imputed interest 0.1p 0.1p
Separately reported items 5.8p 5.9p
Tax effect of the above adjustments and adjusting
tax items (0.9p) (0.6p)
==================================================== ======= =======
Adjusted diluted earnings per share 20.2p 17.2p
==================================================== ======= =======
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
6 Goodwill
Americas Nordic Germany Middle Asia UK Total
East Pacific SMG
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
====================== ========= ======= ========= ======= ========= ======= ===== ======
Carrying amount
at 1 August
2019 22.4 9.1 11.9 1.8 1.4 17.9 1.2 65.7
Impairment - (2.1) - - - - - (2.1)
Exchange differences (1.6) (0.1) (0.2) (0.1) (0.1) - - (2.1)
====================== ========= ======= ========= ======= ========= ======= ===== ======
Carrying amount
at 31 July
2020 20.8 6.9 11.7 1.7 1.3 17.9 1.2 61.5
====================== ========= ======= ========= ======= ========= ======= ===== ======
At 31 July
2020
Cost 20.8 9.0 14.2 1.7 1.3 17.9 1.2 66.1
Accumulated
impairment - (2.1) (2.5) - - - - (4.6)
====================== ========= ======= ========= ======= ========= ======= ===== ======
Net book amount 20.8 6.9 11.7 1.7 1.3 17.9 1.2 61.5
====================== ========= ======= ========= ======= ========= ======= ===== ======
Carrying amount
at 31 July
2020 20.8 6.9 11.7 1.7 1.3 17.9 1.2 61.5
Additions 0.1 - 0.4 - 1.3 - 0.1 1.9
Reallocation 14.1 - - - - (17.9) 3.8 -
Impairment - - - - - - - -
Exchange differences (1.1) (1.0) (0.6) (0.1) (0.1) - - (2.9)
====================== ========= ======= ========= ======= ========= ======= ===== ======
Carrying amount
at 31 July
2021 33.9 5.9 11.5 1.6 2.5 - 5.1 60.5
====================== ========= ======= ========= ======= ========= ======= ===== ======
At 31 July
2021
Cost 33.9 8.0 14.0 1.6 2.5 - 5.1 65.1
Accumulated
impairment - (2.1) (2.5) - - - - (4.6)
====================== ========= ======= ========= ======= ========= ======= ===== ======
Net book amount 33.9 5.9 11.5 1.6 2.5 - 5.1 60.5
====================== ========= ======= ========= ======= ========= ======= ===== ======
In accordance with IAS 36, the carrying values of goodwill and
other intangible assets are reviewed annually for impairment. The
2021 impairment review was undertaken as at 31 July 2021. 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 five
years for each CGU based on the budget numbers for the year ending
31 July 2022.
The sources of the assumptions used in making the assessment are
as follows:
-- CGU revenue annual growth rates of 1% to 13%. Growth rates
are forecasts based on both internal and external market
information.
-- Perpetuity growth rates based on management's estimate of
future long-term average growth rates are 2 to 2.25%.
-- Pre-tax weighted average costs of capital used to discount
the future cash flows to their present values are 11 to 15%.
Management has performed a sensitivity analysis on the net
present value of the future cash flows by applying reasonably
possible (but not unrealistic) adverse effects on the impairment
review variables that could arise individually or collectively.
There were no reasonably possible changes in any of the key
assumptions that would have resulted in an impairment in the
Group's CGUs.
Sufficient headroom exists in all CGUs to support the valuation
of goodwill.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
7 Business combinations
During 2021, the Group completed a total of four acquisitions.
For all of these acquisitions the Group obtained control through
acquiring 100% of voting equity interest unless otherwise
stated.
Primary reason for
Acquisition Date of Acquisition Country acquisition Principal activity
========================== ==================== ========== =========================== ===========================
Wizsight Arastima ve 13 November 2020 Turkey Growth and expansion Wizsight is an
Danismanlik Hizmetleri within Turkey and the online-focused research
Anonim Sirketi wider region. agency.
('Wizsight')
========================== ==================== ========== =========================== ===========================
Charlton Insights Inc. 26 February 2021 Canada Establishing sports Charlton Insights is a
presence in Canada. sports research agency.
========================== ==================== ========== =========================== ===========================
Lean App Limited 07April 2021 UK Capability to gather Lean App is an Open
financial transaction Banking start-up.
data.
-------------------------- -------------------- ---------- --------------------------- ---------------------------
Faster Horses Pty Limited 09 July 2021 Australia Growth and expansion in Faster Horses is an
Australia. online-focused data
insights consultancy firm.
========================== ==================== ========== =========================== ===========================
The amount recognised for each class of assets and liabilities
acquired is as follow:
Charlton Lean App Faster
Insights Limited Horses
Wizsight Inc. Pty Limited Total
GBPm GBPm GBPm GBPm GBPm
========================= ========= ========== ========= ============= ======
Intangible assets - 0.3 - 1.1 1.4
Cash 0.1 - - 0.3 0.4
Current assets(1) - 0.2 - 0.4 0.6
Current liabilities - (0.2) - (0.6) (0.8)
Non-current liabilities - (0.3) - - (0.3)
========= ========== ========= ============= ======
Net assets acquired 0.1 - - 1.2 1.3
Goodwill on acquisition 0.4 0.1 0.1 1.3 1.9
========================= ========= ========== ========= ============= ======
Total consideration(2) 0.5 0.1 0.1 2.5 3.2
========================= ========= ========== ========= ============= ======
1. The carrying value of acquired receivables at the acquisition
date is the same as their fair value. The gross contractual amounts
receivable is GBP301,000. Management expects the amount of
contractual cash flows to be collected and not to have a material
impact on the financial statements of the Group.
2. Total consideration only comprises initial cash payments made
upon each acquisition for the year ended 31 July 2021.
Fair value
Fair value adjustments included the recognition of the fair
value of customer relationships, in relation to Charlton Insights
Inc. and Faster Horses Pty Limited.
Goodwill
The goodwill amounts in relation to Wizsight, Charlton Insights
Inc. and Faster Horses Pty Limited are attributable to the
workforce and the future benefit to YouGov of being able to engage
with new and difficult to reach audiences in the respective regions
of the acquirees. The goodwill amount in relation to Lean App
Limited is attributable to the workforce and their capability to
gather financial transaction
data on behalf of YouGov.
None of those goodwill amounts are deductible for tax
purposes.
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
8 Other intangible assets
Software Customer Trademarks
Consumer and software contracts and product
panel development and lists development Total
===============================
Group GBPm GBPm GBPm GBPm GBPm
=============================== ========= ============== =========== ============= =======
At 1 August 2019
Cost 17.2 32.9 5.2 2.3 57.6
Accumulated amortisation (11.7) (23.8) (3.3) (2.0) (40.8)
=============================== ========= ============== =========== ============= =======
Net book amount 5.5 9.1 1.9 0.3 16.8
=============================== --------- -------------- ----------- ------------- =======
Year ended 31 July
2020
Opening net book amount 5.5 9.1 1.9 0.3 16.8
Additions:
Separately acquired 8.9 0.7 - - 9.6
Internally developed - 7.9 - - 7.9
Amortisation:
Amortisation - current
year charge (4.2) (6.0) (0.5) - (10.7)
Exchange differences (0.3) (0.1) - - (0.4)
=============================== ========= ============== =========== =============
Closing net book amount 9.9 11.6 1.4 0.3 23.2
=============================== ========= ============== =========== ============= =======
At 31 July 2020
Cost 24.4 41.9 5.0 1.7 73.0
Accumulated amortisation (14.5) (30.3) (3.6) (1.4) (49.8)
=============================== =======
Net book amount 9.9 11.6 1.4 0.3 23.2
=============================== ========= ============== =========== ============= =======
Year ended 31 July
2021
Opening net book amount 9.9 11.6 1.4 0.3 23.2
Additions: -
Separately acquired 11.7 1.6 - 0.1 13.4
Internally developed - 7.8 - - 7.8
Through business combinations - - 1.4 - 1.4
Disposals (2.0) (0.9) (0.2) (0.1) (3.2)
Amortisation:
Amortisation - current
year charge (7.1) (7.9) (0.3) - (15.3)
Amortisation - disposals 2.0 0.9 0.2 0.1 3.2
Exchange differences (0.6) (0.7) - - (1.3)
=============================== ========= ============== =========== ============= =======
Closing net book amount 13.9 12.4 2.5 0.4 29.2
=============================== ========= ============== =========== ============= =======
At 31 July 2021
Cost 34.1 50.4 6.2 1.7 92.4
Accumulated amortisation (20.2) (38.0) (3.7) (1.3) (63.2)
=============================== =======
Net book amount 13.9 12.4 2.5 0.4 29.2
=============================== ========= ============== =========== ============= =======
YOUGOV PLC
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2021
9 Trade and other receivables
31 July 31 July
2021 2020
=======================
Group Group
=======================
GBPm GBPm
======================= ========== ========
Trade receivables 20.9 22.0
Expected credit loss (1.0) (3.5)
======================= ========== ========
Net trade receivables 19.9 18.5
Other receivables 4.6 3.0
Prepayments 4.7 4.0
Accrued income 11.5 8.7
======================= ========== ========
40.7 34.2
======================= ========== ========
10 Trade and other payables
31 July 31 July
21 20
=================
Group Group
GBPm GBPm
================= ======== ========
Trade payables 5.0 3.1
Accruals 19.3 16.3
Deferred income 14.7 13.2
Other payables 8.8 5.9
================= ======== ========
47.8 38.5
================= ======== ========
Included within Group's other payables are GBP0.4m (2020:
GBP0.3m) of contributions due in respect of defined contribution
pension schemes.
11 Events after the reporting year
On 30 September 2021, YouGov plc acquired a 100% share in
Rezonence Limited for c. GBP5m. The company operates a digital
marketing platform that facilitates access to premium content after
consumers engage with an advert or micro-survey.
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR MPBLTMTABBAB
(END) Dow Jones Newswires
October 19, 2021 02:00 ET (06:00 GMT)
Yougov (LSE:YOU)
Historical Stock Chart
From Feb 2024 to Mar 2024
Yougov (LSE:YOU)
Historical Stock Chart
From Mar 2023 to Mar 2024