YouGov ‘cautiously optimistic’ about annual results

YouGov has said it remains “cautiously optimistic” on its full-year outlook as the polling group revealed a robust first-half result.

The company, which was co-founded by Nadhim Zahawi, the Conservative Party chairman under fire, told investors on Friday that it expects to achieve year-over-year revenue growth this financial year, in line with analysts’ forecasts.

Revenues increased in most countries and divisions in the six months ended January 2023, primarily driven by customers spending on strategic market research.

US trading was supported by significant demand from sectors such as technology, while UK revenues were driven by a solid performance from commercial teams in the face of heightened recession threats.

YouGov said its sales pipeline entering the second half of the year remains “healthy” and is confident of additional margin growth even as significant investments are made.

In recent years, the London-listed data provider has invested significant amounts in developing its technology, expanding into new markets and launching several new products, including data marketplace platform YouGov Safe.

It has also bought tech company Rezonence, Australian consultancy Faster Horses and Istanbul-based research firm Wizsight.

The acquisitions are part of a long-term strategy that includes goals to double sales and adjusted operating profit margin and deliver more than 30 percent compound annual growth in adjusted earnings per share through the end of the current fiscal year.

“As a result of this resilient performance in the first half, we remain cautiously optimistic about the Group’s outlook for FY23 and aim to maintain momentum as we approach the final stretch of our current long-term strategic growth plan.” noted the company.

The polling organization also revealed that Stephan Shakespeare, one of its two founders, will become chairman sometime from early August, replacing media and technology investor Roger Parry.

Shakespeare founded the company with Zahawi, whose political career is on the line after he confessed to paying a settlement to HM Revenue and Customs over a stake in YouGov.

The former finance minister and education minister have come under scrutiny over a tranche of shares in the market research business allocated to Balshore Investments, a Gibraltar-based trust.

Zahawi has denied being a beneficiary of Balshore, which would otherwise have left him liable for an estimated £3.7 million in taxation when the trust sold its stake in YouGov in 2018 for around £27 million.

Last week, a spokesperson for the Stratford-upon-Avon MP said that ‘neither [Zahawi] nor his immediate family are beneficiaries of Balshore Investments or any trust associated with it.”

Closed on Thursday for exactly £10, YouGov Shares were up 5 pence as of Friday afternoon, though their value has fallen about 23 percent over the past year.