Yougov Share Price (YOU)

Valuation: Gap closed YouGov’s valuation is reflecting its growing record of delivering market expectations, its online business model and its mounting reputation for developing innovative products that address gaps in the market. The discount on which it used to trade relative to the international market research (MR) sector has been closed and it now ranks alongside industry favourites such as BrainJuicer and Forrester, which have clearer online strategies.

http://www.edisoninvestmentresearch.co.uk/researchreports/YouGovOutlook241012.pdf

Pollsters YouGov fell on Monday after it said current trading was in line with the board's expectations, but the macro-economic environment, especially in Europe, remained uncertain. Total revenue in the year to the end of July was up 4% to £58.1m, with pre-tax profits rising 7% to £440,000 compared to the year before. Shares were down 3% at 1545.

Commenting on the results, Stephan Shakespeare, Chief Executive, said: "I am pleased to report that we have achieved the objectives we set at the beginning of the year. We have continued to develop and invest in our growing portfolio of data products and services and increase revenue from these. This has helped to drive the momentum in our custom and data businesses, particularly in the US and UK. The focus on profitability under the new management in Germany is delivering planned margin improvements. The launch of the French business has gone well and regionally generated business is growing strongly in the Middle East offsetting the expected end to the large historic contract in Iraq. Innovation remains a key differentiator and the initial customer feedback from recent launches has been very encouraging. YouGov is well placed to continue to outperform the research market both in terms of sales growth and our reputation for new product development: this, combined with our strong balance sheet, underpins our continued investment in the business and the decision to commence the payment of a dividend. Current trading is in line with the Board's expectations although the macro-economic environment especially in Europe remains uncertain"`

Operational Highlights · YouGov continues to increase market share with strong growth in its major markets and in data products and services · Like-for-like revenue increased by 9%2 · Maiden dividend of 0.5p per share to be paid · US increased revenues by 21% to £19.2m (8% organic growth rate); UK by 15% · BrandIndex global revenue increased by 39% to £4.4m · Good progress made in turning around the German business; profit doubled to £0.6m on revenue of £9.4m (2011: £11.3m) · Middle East regionally generated business grew by 19% partly offsetting the £2m decline from the expected ending of the long-term contract in Iraq · Nordic revenue up 6% - ahead of market · New French operation started well: panel has already reached 75,000 · Social Media Analysis (SoMA) product launched · Strong balance sheet with net cash balances of £7.2m (2011: £9.4m) after making £2.5m of earn-out payments for previous acquisitions · Current trading in line with the Board's expectations

http://www.investegate.co.uk/Article.aspx?id=201210150700076520O