Online polling company YouGov (YOU) increased adjusted operating profit by a modest £0.3m to £5.6m in its latest financial year. That's not a bad performance given the business is still in a turnaround phase. As well as incurring costs from expansion into new markets, investment is being allocated towards higher-margin data products such as BrandIndex (a global brand intelligence service) and Omnibus (a daily survey facility).
"Data products can generate operating margins of about 25 per cent," says chief executive Stephan Shakespeare. Unlike customised survey research, data products require little or no human intervention. They now account for 23 per cent of YouGov's revenue, up from 19 per cent the prior year, and Mr Shakespeare wants to raise that figure to nearer 50 per cent.
YouGov's social media analysis (SoMA) product, which can track opinion trends on the likes of Facebook and Twitter, is also up and running. "No other company can do this," maintains Mr Shakespeare. Beta-launched in May, SoMA will get a strong marketing push this autumn.
The US business is making progress, too. Buoyed by the acquisition of Definitive Insights, revenues here climbed a fifth to £19.2m and operating margins improved a couple of points to 14 per cent. Customers there include Activision, Coca Cola, Microsoft and Panasonic. And the troubled German division is looking healthier, meeting its annual profit target for the first time.
Broker Numis forecasts current year adjusted EPS of 5.3p, up from 4.6p.
YOUGOV (YOU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 79p | MARKET VALUE: | £76m | |
| TOUCH: | 77-80p | 12-MONTH HIGH: | 82p | LOW: 43.5p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | na | |
| NET ASSET VALUE: | 58p* | NET CASH: | £7.2m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 14.3 | 3.98 | 4.9 | nil |
| 2009 | 44.3 | -0.68 | -0.6 | nil |
| 2010 | 44.2 | -10.57 | -8.8 | nil |
| 2011 | 56.1 | 0.41 | 0.3 | nil |
| 2012 | 58.1 | 0.44 | 0.4 | 0.5 |
| % change | +4 | +7 | +33 | - |
Ex-div: 5 Dec Payment: 17 Dec *Includes intangible assets of £44.8m, or 46p a share | ||||
