26 March 2024

YouGov plc

("YouGov" or the "Group")

Results for the six months to 31 January 2024

- Continued confidence in achieving FY24 market expectations underpinned by robust sales pipeline

 

- Resilient H1 performance with continued growth momentum in a challenging macro environment

 

- Successful completion of CPS acquisition with integration progressing well

 

YouGov, the international research and data analytics group, announces its results for the six months ended 31 January 2024.

 

 

Summary of Results
	Unaudited six months to 31 January 2024   £m	Unaudited six months to 31 January 2023 (restated) £m	Change %	Underlying Change¹ %
Revenue	143.1	131.4	9%	2%
Adjusted Operating Profit1,2	27.9	22.6	23%	(4%)
Adjusted Operating Profit Margin (%)2	19%	17%	200bps	(100bps)
Statutory Operating Profit	9.5	20.4	(53%)
Adjusted Profit before Tax1	30.3	27.1	12%
Statutory Profit before Tax	10.4	21.0	(50%)
Adjusted Earnings per Share1	20.4	19.7	4%
Statutory Basic Earnings per Share	3.7p	14.7p	(75%)

 

1. Defined in the explanation of non-IFRS measures below.

2. Figures have been restated to remove customer list amortisation which is now classified as a Separately Reported Item.

 

 

Financial highlights

 

?	Revenue growth of 9% (HY23: 30%) to £143.1m, with underlying¹ growth of 2% (HY23: 13%), against a strong comparable period in the prior year.
?	Adjusted operating profit2 up by 23% to £27.9m reflecting contribution from the acquisition of the Consumer Panel Services of GfK GmbH ("CPS"), with underlying¹ change of (4%) due to slightly lower gross margins.
?	Adjusted operating profit margin2 up 200 basis points (bps) to 19%, due to accretive margin contribution from CPS.
?	Statutory operating profit down by 53% to £9.5m (HY23: £20.4m), due to exceptional costs of £18.4m largely in relation to the CPS acquisition and related debt financing.
?	Adjusted earnings per share1 up by 4% to 20.4p (HY23: 19.7p). Statutory earnings per share has decreased from 14.7p to 3.7p.
?	Robust balance sheet position maintained with cash at period end of £53.4m (31 January 2023: £41.4m) and leverage ratio1 of 1.6x net debt to EBITDA.

 

 

 

Operational highlights

 

?	After a slow start to the year, strong sales momentum has returned particularly for our panel-based custom tracking solutions.
?	High-quality syndicated data remains embedded across clients' workflows resulting in stable demand for our Data Products division.
?	Following a slowdown in H2 FY23, sales momentum in the technology sector has returned to the high levels seen in the prior year period.
?	Our historically core markets, the UK and US, remained the key growth drivers in the period while performance in EMEA was flat on an underlying basis1. We anticipate an acceleration in the US in the second half of the year owing to a strong sales backlog and are beginning to see commercial opportunities in relation to the presidential elections later this calendar year.
?	Continued investment made during the period to meet client research demand and drive further innovation
	?	Product innovation: Continued investment of £6.0m (HY23: £4.4m) in technologies to drive long term growth, including the launch of our first AI product to meet growing demand in qualitative research. This new product builds on our existing machine learning and data capabilities, and we are pleased to see high levels of early interest for it in the market.
	?	Panel: Continued investment of £3.4m (HY23: £4.8m) in the build-out of our panel and allocation of resources to higher growth areas, such as the US to meet demand for customised research.
	?	Acquisitions: Acquired US-based survey data management solution, KnowledgeHound, to further extend the capabilities of the YouGov Crunch analytics platform. Completed the transformational acquisition of CPS, the European leader in household purchase data across 18 countries, for a headline purchase price of ?315m.

 

Update on CPS

 

?	The integration process is well underway, with our combined teams collaborating on commercial opportunities to capitalise on the benefits of the enhanced value proposition.
?	We have seen a positive response from both employees and clients, largely due to the highly complementary nature of the transaction. Our shared DNA on providing high quality data using an engaged panel, combined with CPS's deep client relationships will support our continued growth by expanding our combined offering to existing clients in our current markets, and creating opportunities to win new clients and roll out into new markets.
?	The acquired business has been trading ahead of expectations since the acquisition announcement in July 2023, on the back of investments in the business and strong client renewals.

 

Current trading and outlook

 

?	While we continue to experience longer sales cycles and a slower-than-expected Q1, our sales momentum has accelerated in Q2 underpinned by clients' continued focus on high-quality, data-driven solutions.
?	The Group's sales pipeline remains healthy and, with over 75% of the stand-alone revenue expectation already committed, it provides good visibility as we go into the second half of the financial year.
?	While the overall weakness in macro sentiment may impact the speed and level of some client spending, we remain confident in achieving current market expectations for the full year.
?	We remain disciplined in our investment approach as we continue to optimise our cost base to ensure we are poised for further margin improvement.
?	Our focus on our commercial rigour, supported by the recent appointment of a Chief Commercial Officer, will be central to our operations and in further strengthening the Group's foundations to deliver on our third long-term strategic plan.

 

Revised medium term targets

 

?	Following the completion of the CPS transaction, the Group revises its medium-term guidance to include the contribution from CPS as follows:
	?	Medium-term revenue of £650 million (previously £500m); and
	?	Medium-term adjusted operating profit margin of 25% (unchanged).

 

Leadership and board changes

 

?	During the period, we appointed Tom Fisher as Chief Commercial Officer, to lead our new regionally-aligned commercial structure and help deepen relationships with our blue-chip client base. He takes over from Frank Saez, our previous Chief Revenue Officer, who stepped down at the end of 2023.
?	Post period, on 19 February we announced that Sundip Chahal, Chief Business Officer, had stepped down for personal reasons.
?	Lynda Vivian, Chief Operating Officer, succeeds Sundip in managing the integration of CPS. Alongside the integration, Lynda will continue to focus on the delivery of YouGov's Platform model, in line with the Company's strategic growth plan, and ensuring operational excellence across the business.
?	In light of the previously announced stepping down of Rosemary Leith in April 2024 after nine years' service, a search is currently underway for a new Non-Executive Director.

 

Steve Hatch, Chief Executive Officer, said:

 

"YouGov delivered a resilient performance in the first half of the financial year, with continued growth momentum in a challenging macroeconomic environment. In line with our strategy, we have continued to invest in the business to drive sustainable growth and expand our technological capabilities both organically and through acquisitions made during the period.

 

We were delighted to welcome the brilliant CPS and KnowledgeHound employees to our team. I am pleased to confirm that the integration of CPS is progressing well, with positive responses from both clients and our combined teams. We are collaborating on commercial opportunities, with active cross-sell projects beginning to come through post period end, as we create more value for our clients. 

 

As we enter the second half, our clients are increasingly looking for high-quality, data-driven solutions. The quality of our products and services, the accelerated sales momentum seen in the second quarter, and our robust sales pipeline gives us confidence that YouGov can achieve growth for the full year in line with current market expectations."

 

 

Analyst presentation

 

A presentation for investors and analysts will be held via Zoom audio webcast at 9.30am on Tuesday 26 March 2024. Link to join the presentation below.

 

Zoom webinar: https://yougov.zoom.us/j/99189135756?pwd=Y3Zld08rYVlkVnVvUEVLWmdYRXErQT09

 

A copy of the presentation will be available online at
https://corporate.yougov.com/investors/presentations/ shortly after the half-year results announcement is live on the Regulatory News Service (RNS).

 

Forward looking statements

 

Certain statements in this full year 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.

 

 

Enquiries:

YouGov plc Steve Hatch, CEO Alex McIntosh, CFO Hannah Jethwani, IR Director	020 7012 6000
FTI Consulting Charles Palmer / Valerija Cymbal / Jemima Gurney	020 3727 1000
Deutsche Numis (NOMAD and Joint broker) Nick Westlake / Iqra Amin	020 7260 1000
Berenberg (Joint Broker) Mark Whitmore / Richard Andrews / Alix Mecklenburg-Solodkoff	020 3207 7800

 

 

About YouGov

YouGov is an international online research data and analytics technology group. 

Our mission is to offer unparalleled insight into what the world thinks. 

Our innovative solutions help the world's most recognised brands, media owners and agencies to plan, activate and track their marketing activities better.

With operations in the UK, the Americas, Europe, the Middle East, India and Asia Pacific, we have one of the world's largest research networks.

At the core of our platform is an ever-growing source of consumer data that has been amassed over our twenty years of operation. We call it Living Data. All of our products and services draw upon this detailed understanding of our 27+ million registered panel members to deliver accurate, actionable consumer insights. 

As innovators and pioneers of online market research, we have a strong reputation as a trusted source of accurate data and insights. Testament to this, YouGov data is regularly referenced by the global press, and we are the second most quoted market research source in the world. 

YouGov. Living Consumer Intelligence.

For further information, visit business.yougov.com 

 

 

Chief Executive Officer's Review

The H1 FY24 period marks my first six months at YouGov and I remain impressed with the calibre of our staff and the level of trust we have with our clients and panellists. YouGov has seen resilient performance during a period of leadership transition and against a macro-economic environment that remains challenging. Client budgets have remained under pressure, in part due to the inflationary environment, leading to some scaling back or delays in spending decisions. In our home market, the UK, the IPA Bellwether Report estimated that market research budgets shrunk 5% in Q4 2023, down from a 1.5% decline in the preceding quarter. Additionally, industry body ESOMAR estimated that the established market research sector in the US would expand by only 1% in 2023.

Despite this backdrop, we continue to capitalise on our strength in the US technology and media agency sector as our data continues to be increasingly embedded into client workflows. We have also seen strong growth in the retail and travel sector, where we have been previously underweight, as clients look to better understand changing consumer behaviours.

From a regional perspective, the UK continues to perform well owing to our strong reputation in the market. Conversely, performance in the US has been more challenging as a consequence of disruption in the e-sports and gaming sector due to clients restructuring, a high comparable base for the technology sector, as well as the academic sector which had benefited from election work in the prior year period.

Performance by Geography

Revenue	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	Revenue growth %	Underlying1 revenue change %
UK	32.8	31.1	5%	5%
Americas	60.5	63.0	(4%)	2%
EMEA	47.2	33.6	41%	0%
Asia Pacific2	9.4	10.1	(7%)	(1%)
Central Items	(6.8)	(6.4)	8%	5%
Group	143.1	131.4	9%	2%

 

1 Defined in the explanation of non-IFRS measures below.

2 Following a change in regional management structure, Mainland Europe and Middle East have been combined into one reporting unit and India has been reclassified from APAC into EMEA. Prior year comparables have been restated.

 

Progress on our operational priorities for FY24

Based on my initial assessment of our business and strategy, we had identified five key areas of priority and opportunities for the FY24 period. We have made considerable progress on these areas as per below:

?	Panel Quality:
	?	Published an industry leading white paper in November 2023 that confirms the steps we have taken to continuously improve data quality in YouGov BrandIndex over the years and how these have allowed the Company to take a market leading position and help raise industry standards.
	?	Continued to monitor data integrity and tightened the controls used in our key products to address the long-standing industry issue of respondent attention. The focus on panel quality and data integrity is becoming increasingly prevalent and we are starting to see it referenced in client RFPs.
?	Product Innovation:
	?	Developed our first category view solution that delivers YouGov BrandIndex alongside category survey data to drive uptake amongst brand clients. The new solution combines benefits of our flagship product and survey methodology as a cost-efficient way of delivering brand tracking at a category level. We expect to launch this product over the coming months, beginning with the automotive sector.
	?	Continuing to enhance our core products to enable our customers to drive additional value from our existing datasets. During the period, we announced the acquisition of US-based KnowledgeHound to further extend our analytics capabilities. Following its integration, the acquired technology will help improve the UX and UI for our core data products and enable data discovery, integration, and productisation of reports for brands.
	?	Scaling our newer behavioural products such as YouGov Safe into new markets, expanding the sources of data we collect and connecting it with YouGov Profiles to enable it to be sold as an add-on solution in our smaller markets.
	?	Established an AI Platform team to assess opportunities for new technological innovation and ways to improve workflow automation. We have successfully launched our first client-facing AI product, YouGov AI Qual Explorer, enabling clients to run qualitative research quickly and cost-effectively using natural language processing. Initial client feedback has been positive with the product already securing its first clients.
?	Commercial Rigour:
	?	Announced the appointment of a new Chief Commercial Officer, Tom Fisher, to lead our new regionally aligned commercial team structure. Having previously led our technology research team, Tom has an excellent track record of expanding share of wallet with clients using our deep, rich dataset and advanced analytics capabilities.
	?	Signed one of our largest single contracts to date with a multinational media agency. The multi-year contract will embed our syndicated data products in over 20 markets across the agency's different divisions and provides us an opportunity to cross-sell our research services.
	?	Continued focus on improving business planning and account management through better alignment of incentives, increased performance management and implementing sales-enabling technology systems.
?	US Expansion:
	?	The US remains the largest addressable market opportunity for the Group and we expect the region to be our biggest growth driver for FY24 as technology clients continue to increase their spending on our connected custom trackers.
	?	The run-up to the US presidential elections in November presents a significant opportunity to increase brand awareness in the region and the pipeline of commercial activities is starting to build up. Testament to our quality and accuracy, FiveThirtyEight (538), the gold standard in data journalism and electoral analysis, recently ranked YouGov in 4th place in its latest Pollster Rankings.
?	YouGov Platform:
	?	Initial marketing outreach for our self-serve survey tool, YouGov Surveys, has resulted in the onboarding of over 200 paying users, of which about 150 users are new to YouGov.
	?	In order to drive organic recruitment, we continue to produce engaging content on our public data sites and have seen an increase in click throughs from our public content onto our member and client platform.
	?	Additionally, we have seen a strong increase in participation from our panel members in the UK and US, from commercially valuable activities to opinion sharing via YouGov Chat to behavioural data sharing.

 

Acquisition of CPS

On 9 January 2024, the Group announced that it has completed its acquisition of the Consumer Panel Services of GfK GmbH ("CPS") for a headline purchase price of ?315 million. CPS is an established leader in household purchase data, with panels across 18 European countries, consisting of over 100,000 households.

CPS capabilities are strategically aligned with YouGov, adding highly engaged panels across the European market and technology to capture and analyse consumer purchasing data. The acquisition will support our continued growth by expanding our combined offering to existing clients in our current markets, as well as the opportunity to win new clients and roll out into new markets.

Since the initial acquisition announcement in July 2023, CPS has been trading ahead of expectations set out at the time of the deal. Additionally, the acquired business has successfully renewed all major client contracts, further demonstrating its market leadership and strong client relationships. During the period, the acquired business has also successfully launched panels to enable passive data collection in two new markets. Under the YouGov umbrella, the division intends to continue to invest in strategic growth initiatives that will accelerate its growth in the coming years.

YouGov has launched an integration programme to ensure a measured and seamless transition for all its stakeholders. The integration process is well underway, and the Group has already successfully completed its first research project cross-sell to a CPS client. Over the coming months, YouGov will be working closely with consulting firm, AlixPartners, to design a target operating model for the combined Group that allows us to build on our respective strengths and capitalise on the commercial opportunities ahead of us.

Following the completion of the transaction, the Group revises its medium-term guidance to include the contribution from CPS as follows:

?	Medium-term revenue of £650 million (previously £500m); and
?	Medium-term adjusted operating profit margin of 25% (unchanged).

 

 

 

Steve Hatch

Chief Executive Officer

26 March 2024

 

Chief Financial Officer's Review

 

 

The Group has delivered a resilient performance in the six months to 31 January 2024. On a reported basis, Group revenue increased 9% to £143.1m in the period compared to £131.4m in the six months to January 2023, largely driven by the acquisition of the CPS business.

 

Underlying¹ revenue growth (excluding foreign exchange movements and contribution from acquisitions) was 2% against a challenging macro-economic environment, continued pressure on client budgets and a high comparable base in H1 FY23 that benefited from increased client spend from the technology sector in the US. The Group's performance was underpinned by stable demand in our Data Products and Research divisions, while general market softness put pressure on discretionary spend.

 

The Group's results were affected by the net appreciation of £ Sterling as its average exchange rate was 6.2% higher against the USD in this period compared to the six months to 31 January 2023. The £ Sterling was also 0.5% higher against the EUR over the same period. As a result, the net impact of foreign exchange on the Group's adjusted operating profit was a decrease of £2.1m.

 

Gross Margins were stable at 85% as lower contribution from our high-margin Data Products division was offset by the inclusion of the CPS business.

 

Group Operating costs (excluding separately reported items) of £93.9m, (HY23: £88.9m) increased by 6% in reported terms and 2% on an underlying¹ basis. Group adjusted operating profit (excluding separately reported items) increased to £27.9m (a 23% increase from £22.6m in HY23). Underlying¹ operating profit decreased by 4%, when excluding the impact of acquisitions and FX, on the back of slightly lower gross margins and higher IT costs.

 

The statutory operating profit (which is after charging other separately reported items of £18.4m largely relating to the acquisition of CPS and related debt financing) decreased by £10.9m to £9.5m (HY23 £20.4m).

 

Performance by Division

 

Following the acquisition of CPS, the segmental breakdown has been updated to include CPS as a separate division and to combine Custom Research and Data Services, previously shown as separate divisions, into a single division called "Research".

 

Revenue	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	Revenue growth %	Underlying1 revenue change %
Data Products	41.1	41.9	(2%)	2%
Research	86.1	88.1	(2%)	1%
CPS	14.1	-	-	-
Central Items	1.8	1.4	29%	47%
Group	143.1	131.4	9%	2%

 

 

 

Adjusted Operating Profit1	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	Operating Profit growth %	Operating Margin
				Six months to 31 Jan 2024	Six months to 31 Jan 2023
Data Products	15.9	17.5	(9%)	39%	42%
Research	16.1	16.0	1%	19%	18%
CPS	8.4	-	-	60%	-
Central Costs	(12.5)	(10.9)	15%	-	-
Group	27.9	22.6	23%	19%	17%

 

1 Defined in the explanation of non-IFRS measures below.

 

Data Products

 

Our syndicated data products suite includes YouGov BrandIndex and YouGov Profiles as well as newer behavioural products, such as YouGov Safe.

 

Revenue from Data Products declined by 2% in reported terms (2% growth on an underlying basis) in the period. Geographically, the UK and EMEA regions benefited from moderate underlying¹ growth while Americas was largely flat. Continued pressure on client budgets and higher price competition have partially impacted renewal rates across the Group, offset by sales of new subscriptions, in particular to media agencies.

 

The adjusted operating profit from Data Products declined by 9% to £15.9m and the operating margin decreased to 39%. During the period, the division also expensed a greater proportion of intangibles software compared to H1 FY23.

 

Research

 

Our Research division combines our legacy Data Services and Custom Research divisions into a single reporting unit. It comprises our fast turnaround research services, such as YouGov RealTime Omnibus, as well as tailored research projects and tracking studies.

 

In the period, revenue from Research declined by 2% in reported terms and increased by 1% on an underlying basis. Geographically, the UK saw good growth in custom research projects, offset by some weakness in discretionary spend on fast-turnaround research. The Americas saw stable demand from the technology sector despite the high comparable base in the prior year, and weakness in the gaming sector was offset by gains in the FMCG and Retail sector.

 

The division's adjusted operating profit was stable at £16.1m (HY23 £16.0m) representing an operating profit margin of 19% (HY23: 18%).

 

Consumer Panel Services (CPS)           

 

Our CPS division provides household purchase data across 18 European countries.

 

CPS contributed £14.1m of revenue and £8.4m in adjusted operating profit following the completion of the acquisition on 9 January 2024. Due to the nature of CPS data collection and contractual commitments, there is a high volume of client reports delivered in the months of January and July. Most of the CPS revenue is recognised at a point in time per the IFRS 15 definition. This has led to the high level of contribution to Group results during the period.

 

  

 

 

Profitability by Geography

 

Adjusted Operating Profit1	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	Operating Profit growth %	Operating Margin
				Six months to 31 Jan 2024	Six months to 31 Jan 2023
UK	7.3	6.2	18%	22%	20%
Americas	19.5	23.1	(16%)	32%	37%
EMEA	11.5	2.7	N.M.	24%	8%
Asia Pacific2	0.5	1.0	(50%)	5%	10%
Central Costs	(10.9)	(10.4)	4%	-	-
Group	27.9	22.6	23%	19%	17%

1 Defined in the explanation of non-IFRS measures below. Adjusted operating profit has been restated to remove customer list amortisation which is now classified as a Separately Reported Item.

2 Following a change in regional management structure, Mainland Europe and Middle East have been combined into one reporting unit and India has been reclassified from APAC into EMEA. Prior year comparables have been restated.

 

Panel Development

 

We continue to invest in our online panel to increase our research capabilities, both in our newer geographies and in the US in the run up to the presidential elections. At 31 January 2024, the total number of registered panellists had increased by 15% to over 27 million, compared to 24 million at 31 January 2023, as set out in the table below.

 

Region	Panel size at 31 January 2024 millions	Panel size at 31 January 2023 millions
UK	2.98	2.79
Americas	10.09	8.76
EMEA	9.70	8.28
Asia Pacific	4.93	4.18
Total	27.70	24.01

 

 

Group financial performance

 

Separately reported items

Separately reported items including acquisition related costs of £18.4m are largely comprising of professional services costs related to the acquisition of CPS and related debt financing.

Additionally, YouGov has updated the presentation of separately reported items to include the amortisation costs of acquired customer relationship intangible assets. Therefore, these costs are not included in Group's Adjusted Operating Profit. The change will give a more comparable view of the Group's performance with other market research and technology companies and a more comparable performance metric within our divisions. Amortisation of acquired customer lists, in relation to the acquisition of CPS and LINK Marketing Services AG, amounted to £1.2m for the period ended 31 January 2024 (HY 2023: £0.5m).

Finance Costs

 

Group net finance income increased to £0.9m (HY 2023: £0.6m). Finance income for the six months ended 31 January 2024 was £2.1m, largely due to interest received on bank deposits. Interest payable on our debt facilities amounted to £0.9m during the same period.

 

 

Profit before tax and earnings per share

 

Adjusted profit before tax was £30.3m, increasing by 12% compared to £27.1m in HY 2023, largely due to the contribution from the acquisition of CPS. The adjusted tax rate increased from 21% in HY 2023 to 23%. Statutory profit before tax decreased to £10.4m compared to £21.0m in the six months ended 31 January 2023.

 

During the period adjusted earnings per share has increased by 4% from 19.7p to 20.4p, due to higher taxes and share count.  Statutory earnings per share has decreased from 14.7p to 3.7p.

 

Cash flow

 

The Group generated £16.9m (HY23: £30.5m) in cash from operations (before paying interest and tax) including a £7.5m outflow (HY23: £8.6m outflow) from net working capital and after accounting for £18.4m in exceptional costs related to the CPS acquisition and loan financing. Taxation payments for the period totalled £3.3m (HY23: £1.6m).

 

Amortisation charges for intangible assets totalled £10.7m in the period (HY23: £10.8m) of which £4.8m (HY23: £5.4m) relates to our panel asset and £4.3m (HY23: £4.6m) to our software and technology development activities.

 

The Group invested £6.0m (HY23: £4.4m) in the continuing advancement of our technology platform while investment in panel recruitment amounted to £3.4m (HY23: £4.8m) as we ramp up member recruitment ahead of key elections. £0.2m (HY23: £0.6m) was spent on the purchase of property, plant and equipment.

 

In January 2024, the Group completed two acquisitions for a total consideration of £259.7m (net of cash acquired). The consideration was primarily funded through the drawdown of £214.5m in bank loans and existing cash on the balance sheet.

 

Other cash outflows included £1.9m spent on purchase of treasury shares and the annual shareholder dividend payment of £10.1m (HY23: £7.7m) in December 2023.

 

The Group is expecting £4.6m of deferred consideration to be paid in the next twelve months in respect of future earn-outs related to acquisitions.

 

There was a net cash outflow of £53.6m in the period, compared to an inflow of £4.7m in the six months to 31 January 2023. The net cash balance of £53.4m was higher than at 31 January 2023 (£41.4m).

 

 

Bank debt and liquidity

 

During the period, the Group entered into a ?280m debt facility to fund for the acquisition of CPS. This facility comprised of a ?40m Revolving Credit Facility ("RCF") and a ?240m amortising term loan with a tenor of four years ("Term loan"). In January 2024, the full-term loan was drawn and ?10m was drawn on the RCF.

The Group's liquidity position remains strong with £53.4m in cash on the balance sheet and ?30m of the RCF available for drawdown. The Group's net debt as at 31 January 2024 was £162.7m and, excluding the impact of IFRS 16, the Group's leverage ratio¹ as of 31 January 2024 was 1.6x. It is the Board's long-term intention for the Group to return to a net cash position.

 

Alex McIntosh

Chief Finance Officer

26 March 2024

 

1 Defined in the explanation of non-IFRS measures below.

 

Explanation of Non-IFRS measures

 

Financial Measure	How we define it	Why we use it
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)	Provides a more comparable basis to assess the year-to-year operational business performance and is how our performance is reviewed internally
Separately reported items	Items that, in the Directors' judgement, are one-off or need to be disclosed separately by virtue of their size or incidence or excluded to aid comparability
Adjusted operating profit	Operating profit excluding separately reported items
Adjusted operating profit margin	Adjusted operating profit expressed as a percentage of revenue
Adjusted profit before tax	Profit before tax before share based payment charges, imputed interest and separately reported items
Adjusted taxation	Taxation due on the adjusted profit before tax, excluding the tax effect of separately reported items	Provides a more comparable basis to assess the underlying tax rate
Adjusted tax rate	Adjusted taxation expressed as a percentage of adjusted profit before tax
Adjusted profit after tax	Adjusted profit before tax less adjusted taxation	Facilitates performance evaluation, individually and relative to other companies
Adjusted profit after tax attributable to owners of the parent	Adjusted profit after tax less profit attributable to non-controlling interests
Adjusted earnings per share	Adjusted profit after tax 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
Cash conversion	The ratio of cash generated from operations to adjusted EBITDA	Indicates the extent to which the business generates cash from adjusted EBITDA
Net debt	Short and long-term borrowings (excluding lease liabilities and including pension defined benefit net deficit) less cash and cash equivalents.	Provides an insight into the debt position of the Group, taking into account current cash resources.
Leverage ratio	Net debt calculated as a multiple of the last 12 months Adjusted EBITDA.

Reconciliation of Non-IFRS measures¹

Adjusted EBITDA2 reconciliation	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	% Change
Adjusted operating profit1	27.9	22.6	23%
Depreciation	2.4	2.2	9%
Amortisation	10.7	10.8	(1%)
Adjusted EBITDA	41.0	35.6	15%

 

Adjusted Profit Before Tax2	Six months to 31 Jan 2024 £m	Six months to 31 Jan 2023 £m	% Change
Statutory profit before tax	10.4	21.0	(50%)
Separately reported items	18.4	2.2	-
Share based payments	1.5	3.8	-
Adjusted profit before tax2	30.3	27.1	12%

 

1 See note 6 for reconciliation of adjusted earnings per share.

2 Defined in the explanation of non-IFRS measures above.

 

YOUGOV PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES

For the six months ended 31 January 2024

 

 

The Directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

 

?	an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
?	material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

 

The Board of Directors of YouGov plc are:

?	Rosemary Leith - Non-Executive Director3
?	Andrea Newman - Non-Executive Director
?	Ashley Martin - Non-Executive Director
?	Nick Prettejohn - Non-Executive Director
?	Shalini Govil-Pai - Non-Executive Director
?	Devesh Mishra - Non-Executive Director
?	Stephan Shakespeare - Non-Executive Chair 1
?	Steve Hatch - Chief Executive Officer 2
?	Alex McIntosh - Chief Financial Officer

 

By order of the Board:

 

 

 

Alex McIntosh

Chief Financial Officer

26 March 2024

1 Appointed on 01 August 2023 upon the retirement of Roger Parry on 31 July 2023
2 Appointed on 01 August 2023
3 Will retire from the board in April 2024.