Shares in Yougov surged by 13 per cent on Tuesday after the data analytics firm reported revenues and operating profits that slightly exceeded its full-year forecasts.
In its unaudited financial results for the year ending 31 July, 2024, Yougov revealed a three per cent organic revenue growth, with total reported revenue climbing by 30 per cent to £258.3 million, bolstered by its recent acquisition of CPS, as reported by .
The company's performance surpassed the guidance provided in August, thanks to an unexpected uptick in research activities during July.
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Adjusted operating profit saw a marginal rise from £49.1 million in 2023 to £49.6 million, as trading this year mirrored the levels seen last year, despite slower sales bookings in the latter half of the year.
However, statutory operating profit took a significant hit, plummeting by 75 per cent to £10.9 million, impacted by £38.7 million worth of acquisition-related and restructuring expenses.
Earlier in January, YouGov made headlines with the acquisition of CPS, a leading European entity in household purchase data spanning 18 countries, for a deal valued at €315 million (£262.4 million).
The London-based firm has reported that CPS is performing robustly, meeting expectations, and that the integration process is advancing smoothly.
Additionally, Yougov has ramped up its cost optimisation strategy, anticipating around 70 per cent of annualised savings to be realised, predominantly in the second half of 2025.
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Yougov's chief, Steve Hatch, expressed confidence about the future, commenting: "The macroeconomic environment remained challenging across the wider market research industry and for Yougov, while internal execution also contributed to the challenges we faced."
"We acted quickly over the summer and I am confident that we have put the right initiatives in place as we focus on the execution of our long-term strategic plan," he added.
In terms of future prospects, Yougov anticipates revenue growth in FY25, propelled by further advancement of AI capabilities, enhancements to its core data products and new commercial leadership.
Analysts at Peel Hunt gave Yougov a buy rating, stating: "Most of the FY25 cost-saving measures are in place, but the corporate spending backdrop remains tough."
"However, we believe that confirming market expectations for FY25 should be supportive of the shares today, given their recent weakness."