Good afternoon! 

Paul has already written a Part 1 article (at this link) which covers Bioventix (LON:BVXP), DP Poland (LON:DPP) and Spaceandpeople (LON:SAL).

In this article, I'm covering YouGov (LON:YOU), Elecosoft (LON:ELCO) and K3 Business Technology (LON:KBT).



YouGov (LON:YOU)

Share price: 263.5p (+0.4%)
No. shares: 105.1m
Market cap: £277m

Interim Results

Some strong percentage growth numbers here:

  • Revenue growth of 24% (2016: 15%) - Constant currency growth of 8%
  • Adjusted operating profit1 up by 33% to £5.7m - Constant currency growth of 14%
  • Adjusted profit before tax up by 27% to £6.3m

Paul has previously analysed the discrepancy between YouGov's adjusted and statutory numbers (see here) and today's results again show a large gap. 

Statutory PBT is also rising strongly, but at the lower level of £2.5 million for the six month period to January 2017 (versus the £6.3 million adjusted measure given above). And FX gains have played a big part in these results (so are unlikely to be repeated).

The gap between the numbers above arises primarily from £3.1 million of amortisation, broken down as follows:

  • Consumer Panel (£1.05 million)
  • Software and Development (£1.65 million)
  • Customer contracts and lists (£0.3 million
  • Patents and trademarks (£0.1 million)

YouGov added £1.6 million of software & development in the period, and amortised £1.65 million.

In the prior six-month period, it added £1.6 million and amortised £1.7 million.

In the period before that, it added £1.3 million and amortised £1.5 million.

If it simply expensed all of this, the statutory profit figure would barely change.

But the adjusted number would collapse, since it would start to reflect these costs!

Data products

It's a shame we have to concern ourselves with this, since the underlying business does appear to be doing really well.

Yougov's brand intelligence tracker ("BrandIndex") helped its Data Products division grow revenue by 43% (24% at constant currencies), and operating profit in this division grew by 50%. This is perhaps competing with similar products offered by Brainjuicer (LON:BJU) ? On a standalone basis, this division looks like it would be worth a premium rating.

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