Toluna Reports 42% Rise in Profits

For the year 2007, European panel and survey technology provider Toluna has reported sales growth of 49% to £12.5m, and pre-tax profits up by 42% to £3.2m.

The company's earnings per share rose by 64%, above market expectations to 6.59 pence from 4.03 pence last year. Toluna also proposed a final dividend of 0.75 pence, taking the total dividend for the year to 1.12 pence, up from 0.75 pence last year.

A slowdown in the rate of growth in the second half of the year has been put down to a decision to focus on higher margin business.

Operating cash flow improved to £3.6m and cash reserves at the end of the year had grown to £4.2m, which the firm says provides scope for further acquisitions to improve its reach geographically and technologically, and also to invest further in panels and R&D.

Chairman George Kynoch commented: 'I am pleased to report that our team delivered a substantial advance in sales and profits in 2007, while a close focus on cash generation and operating margins enabled us to report earnings per share comfortably in excess of our expectations.'

During the year, the company expanded its panels from 1.3m to 1.8m members, and its operations to 27 countries, including Mexico, Brazil, Russia, China and Japan.

It also signed an exclusive strategic partnership with the B2B publisher Incisive Media to build B2B panels communities across the latter's vertical markets.

Kynoch says that Toluna's acquisition of Israeli Web 2.0 start-up dPolls in March 2007, together with the creation of a Research & Development centre in Haïfa, brought 'additional strengths' in technology and innovation that will help the firm develop new products and reinforce the community focus of its panel.

During 2007, the firm invested in its London, Paris and Frankfurt offices by adding more local resources, while opening offices in Amsterdam and Seattle. Overall, average headcount increased from 68 in 2006 to 120 last year.

Kynoch concluded that though the market research industry is unlikely to be immune to a downturn, Toluna is well positioned for further growth. 'We look forward to the current year with confidence,' he added.

Web site: www.toluna-group.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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