Yougov hikes dividend by a quarter as Covid-19 data demand drives up revenue
Yougov today said it will raise its dividend by 25 per cent after strong demand for its data products and services during the coronavirus pandemic helped drive up revenue for the full year.
The figures
Yougov posted revenue of £152.4m in the year to the end of July, up 12 per cent on 2019.
Statutory pre-tax profit fell 22 per cent from £19.4m to £15.2m.
Net cash balances stood at £35.3m at the end of the year, down slightly from £37.9m at the same time last year.
The company proposed a 25 per cent dividend increase to 5p per share.
Why it’s interesting
Yougov, which specialises in market research and data analytics, has posted a strong set of full-year results against the backdrop of the coronavirus pandemic.
The company reported double-digit growth in revenue over the year, largely driven by strong growth in its data products and services division.
Revenue from data products jumped 24 per cent to £51.3m, while services ticked up two per cent to £37.8m.
Yougov said it had also enjoyed strong performance in its key markets of the US and the UK, which drove an 18 per cent increase in adjusted operating profit.
However, statutory pre-tax profit dropped 22 per cent due to a £6.6m hit relating to acquisition costs and an impairment charge of its Nordic business.
The market research specialists also pumped £8m into building its tech platform to support future growth.
Yougov said its strategic and financial position remained strong, adding that it had seen no material impact from Covid-19.
While the firm said some retail clients were delaying projects due to the pandemic, it said this had been offset by increased demand from tech clients and government work related to coronavirus.
As a result the company said it proposed to increase its dividend by a quarter from 4p to 5p per share.
What Yougov said
“We have made good strategic progress in the year with the UK and US continuing to be our key revenue and profit drivers,” said chief executive Stephan Shakespeare.
“Our strong performance against the backdrop of a highly challenging market in the second half of our financial year was down to the hard work of our people and trust of our clients who more than ever need actionable, accurate and timely data from which to make informed decisions as they navigate through the current situation.”