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Middle East Launch Helps YouGov Treble Turnover
UK agency YouGov has announced dramatic growth for the six months to 31 January 2006, with turnover up 192% year-on-year to £3.8m. Organic growth has been rapid in the UK, but the new Dubai-based subsidiary YouGov Middle East has already all but matched UK revenues.
UK growth includes new wins in the UK travel and leisure, media, pharmaceutical, financial and public sectors, as the company spreads beyond its initial focus as a polling organisation. Profits before tax rose 141% to £1.4m and earnings per share increased from 3.7 pence to 8.0 pence. Cash generated by operations was £704,000 (up from £483,000 in the six months to 31 January 2005).
UK revenue has grown 47% (vs 6 months to 31 Jan 2005) while Dubai based subsidiary, YouGov ME FZ LLC, which commenced operations in September 2005, has already generated revenues totalling £1.900m in the period, versus £1.941m for the UK operation. However, the directors are cautious about forecasts for the more 'unpredictable' market for the Middle Eastern company, in which YouGov has 78% of the issued ordinary share capital.
A combination of product development and geographical expansion is planned, as well as selective acquisition. Staff numbers have increased from 20 to 41, with recruitment for all divisions including sales, key accounts, insight, service delivery and operations.
Joint CEO Nadhim Zahawi says 'The Group's better than expected performance in the first half confirms the strength of our business model. The core UK business has delivered good organic growth and continues to capitalise on the trend toward online research and polling. The scalability and adaptability of our online research model has also been demonstrated by the significant contribution from our Middle Eastern operations and the successful launch of BrandIndex.'
The Directors are not recommending the payment of a dividend at this point, reflecting 'the age of the Company and the opportunities available'.
YouGov says subscriptions to its new daily brand tracking product, BrandIndex, are accelerating and now in double figures. In the 6-month period, YouGov's panel has expanded from 98,000 active panellists to 145,000, with churn rates low and response rates high. A Canadian panel has been launched in time for the country's general election.
The company also launched a 50:50 joint venture with stockbrokers Execution Limited, a week after the end of the period covered by this week's release. YouGovExecution Limited (YGX) combines financial market knowledge with online survey capabilities for financial institution clients.
YouGov's web site is at www.yougov.com
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