Last checked at 5 Feb 2009 07:48
5 February 2009
YouGov plc
Trading update
YouGov plc, the international online market research agency, issued today the following update for the six months to 31 January 2009, ahead of the interim results announcement on 6 April 2009.
Trading conditions have become more challenging due to the current economic climate. Despite this, revenue for the first six months of YouGov's financial year is expected to be approximately 20% higher than in the same period last year, but only 4% higher in constant currency terms. This growth rate is below the Board's expectations due particularly to much weaker than anticipated new business in the UK, although there has been good growth in a number of markets, notably Germany and the USA.
During 2008 the Group made substantial investments in innovation and new product development, primarily resulting in increased headcount. While the cost base has remained within budget for the period, the revenue shortfall will result in profits for the half year being significantly below market expectations and the six months ended 31 January 2008.
YouGov is a young and innovative company that is committed to developing the research tools of the future. New products launched so far this year include the Recession Tracker whose groundbreaking daily updates help businesses to understand how consumers are responding to the difficult economic conditions.
The Board continues to believe that it is in the best interests of shareholders to maintain its strategy of investing in the development of new products. While the Board is continuing to monitor and manage costs and will make savings where appropriate, it expects that the current trading conditions will result in reduced full year revenue growth such that profitability for the full year will be significantly below market expectations.
YouGov's financial position remains strong with substantial cash balances expected to be higher at the end of the half year than at 31 July 2008. This will leave the Group well placed to support its strategy of growth and innovation.
Commenting, Nadhim Zahawi, Chief Executive, said:
"Innovation is at the very core of our business and we believe that despite the difficult trading conditions, which we are monitoring very closely, prudent investment in the business remains in the best long-term interests of our shareholders. We are in a strong financial position, profitable, debt free and cash generative. Looking forward, we want to ensure that we capitalise on our competitive market positioning.
"Online market research will continue to grow as a proportion of research spend and we believe that YouGov is uniquely positioned to meet the demand for accurate, high-quality real-time research. We see the recession as further disrupting this industry, which gives us an opportunity to build the leading market research company of tomorrow. We are committed to that vision."
Enquiries:
| YouGov plc | |
| Nadhim Zahawi / Alan Newman | 020 7012 6000 |
| Financial Dynamics | |
| Charles Palmer / Nicola Biles | 020 7831 3113 |
| Grant Thornton UK LLP - Nominated Advisor | |
| Gerry Beaney / Colin Aaronson | 020 7383 5100 |
Notes to editors:
YouGov is a leading international online market research agency with an unparalleled reputation for accuracy as demonstrated by its track record of successfully predicting the outcome of elections.
Our German business recently published its first online political poll which provided the most accurate prediction of the results of the Hesse regional election. This follows our successful polling for the US Presidential elections as well as the London Mayoral election in 2008.