10/04/2007
Strengthened by acquisitions and new product development, online market researcher YouGov has delivered a forecast-busting 64% increase in interim profits.
For the half-year to January, YouGov, which lifted UK client numbers by 46% to 263 and claims to be enjoying ‘good levels’ of repeat business, squeezed pre-tax profits of £2.3m from a 61% rise in turnover to £6.1m. The embryonic Middle Eastern arm was boosted by acquisition last year and grew 53%.
As well as acquisitions, joint-CEO Stephan Shakespeare claims YouGov’s success rests on three pillars: accuracy, new products and specialist sub-panels. Of the first, YouGov’s political polling precision has made its name synonymous with accuracy and the burgeoning number of financial customers testifies to its high standing.
As for innovation, Shakespeare tells of much in the pipeline and points to the growing uptake of the Brand Index tool, whose imminent US launch was bolstered by the signing of financial institution Susquehanna. As regards sub-panels, joint ventures have recently been signed to develop high-margin specialist panels, adding to NHS staff and patient surveys launched in the half.
As the company is growing fast in many directions, heavyweight mover and shaker Roger Parry, former CEO of media giant Clear Channel, is taking the chair in order to lead the charge. ‘He has internationalised businesses before,’ emphasises finance director Katherine Lee.
The cash flowing from the Gulf subsidiary establishes that the business is scalable. House broker Numis forecasts profits will mature to £5.2m for the full year and to £6m the year after, producing 5.5p and 6.2p earnings.
Adjusting for a five-for-one stock split, the shares – originally recommended by GCI at the equivalent of 90p last July – have come a long way. Yet, a £1bn domestic market and much more abroad means there is plenty to play for. Still worth adding, despite the podgy p/e.
| Market cap: | £121.51m |
| PE Forecast: | 32.9 |
| Share price: | 181p (905p before share split) |
| AIM | £68.84m |
71.25p
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-1.50p
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| Other company articles: |
| 19/05/2008 |
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| 07/02/2008 |
| 07/12/2007 |
| 08/10/2007 |
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