REG - YouGov PLC - Full Year Results for the year ended 31 July 2022
11/10/2022 07:16
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RNS Number : 4111C YouGov PLC 11 October 2022
11 October 2022
YouGov plc
("YouGov" or the "Group")
Full Year Results for the year ended 31 July 2022
- Strong performance in line with expectations and continued growth momentum
- Continued focus and investment in delivering on the long-term strategy
- Cautious optimism in FY23 prospects, with a good start to the new financial
year
YouGov, the international research and data analytics group, announces its
results for the year ended 31 July 2022.
Year to Year to Change
31 July 2022 31 July 2021 %
£m £m
Revenue 221.1 169.0 31%
Adjusted Operating Profit(1) 36.3 25.5 42%
Adjusted Operating Profit Margin (%)(1) 16.4% 15.1% 130bps
Statutory Operating Profit 30.0 19.0 58%
Adjusted Profit before Tax(1) 34.7 31.2 11%
Statutory Profit before Tax 25.3 18.9 34%
Adjusted Earnings per Share(1) 23.7p 21.7p 9%
Statutory Basic Earnings per Share 15.7p 11.5p 37%
1 Defined in the explanation of non-IFRS measures below.
Financial highlights
· Revenue growth of 31% (20% on an underlying¹ basis) to £221.1m, with
double-digit growth across all divisions and geographies.
· Adjusted operating profit(1) up by 42% (33% on an underlying¹ basis) to
£36.3m, as business efficiencies and operational leverage benefits are
starting to come through.
· Adjusted operating profit margin(1) up 130 basis points (bps) to 16.4%,
despite continued investment in the business.
· Statutory operating profit up 58% to £30.0m.
· Adjusted earnings per share(1) up by 9% to 23.7p, impacted by adverse foreign
exchange movements.
· Strong cash conversion(1) of 113% (FY21: 98%) enabling repayment of the
£20.0m revolving credit facility drawn in the first half of this financial
year.
· Robust balance sheet position maintained with net cash at period end of
£37.4m (31 July 2021: £35.5m) and no outstanding debt.
Operational highlights
· Strong sales momentum in our connected data research solutions that continue
to resonate with clients.
· Coupled with our custom tracking solutions, our high-quality data products are
becoming further embedded into clients' daily marketing workflows, increasing
customer stickiness and retention.
o Data Products revenue increased by 23% from underlying¹ business (28% on a
reported basis) to £74.1m, driven by strong subscription renewal rates and
new longer-term deals giving the Group better visibility, following the
successful reorganisation of its sales structure.
o Data Services revenue increased by 11% on a reported and underlying¹ basis
to £50.7m, returning to normalised growth in the second half following
general market softness, especially in the UK, impacting first half growth.
o Custom Research revenue increased by 21% on an underlying¹ basis (46% in
reported terms) to £95.6m, driven by custom tracking work, significant client
expansions in key verticals, and the division's connected data proposition
exceeding expectations.
· Broad-based growth across all geographies, with the US remaining the key
driver in line with the Group's strategic focus to expand market penetration
in the region.
o Strong commercial success in the Americas and Asia Pacific specifically, and
good performance across Mainland Europe during the period.
· Investments made during the period to drive further growth:
o Technology: Continued investment of £8.0m (FY21: £9.4m) in technologies to
drive long-term growth, including the development of the YouGov Platform into
a public-facing dashboard, enabling high-quality, self-service research.
o Products: Expanded product suite in response to client demand including the
launch of YouGov Global Profiles and YouGov Finance, with ongoing investment
in improving client user experiences and enhancing our panel-facing app.
o Panel: Ongoing investment of £8.0m (FY21: £10.5m) in the build-out of our
panel in recently established markets, resulting in the number of registered
members growing 27% to approximately 22m in the period.
o Centres of Excellence (CenX): Established our newest CenX in Mexico City to
increase research operations coverage for our rapidly growing US business.
o Acquisitions: Acquired Rezonence Limited ("Rezonence") and LINK Marketing
Services AG ("LINK") during the period. LINK significantly expands the Group's
Mainland Europe business and adds valuable social research capabilities, with
Rezonence scaling our activation capabilities and enabling data collection at
unprecedented scale through publisher partnerships.
Current trading and outlook
· Trading for the current financial year, which represents the final year of the
current long-term strategic growth plan, has started off well across all
divisions with continued growth in revenue.
· No material changes in client behaviour have been experienced to date.
Nevertheless, the Board remains cognisant of the broader ongoing
macro-economic environment and will continue to monitor the Group's
performance as it progresses through its upcoming contract renewal season with
customers.
· The Group has a good level of revenue visibility through longer-term
contracts, with over a third of the FYP2 revenue target for FY23 already
secured. This model proved highly resilient in a period of macro instability
during the COVID-19 pandemic.
· Therefore, we remain cautiously optimistic on the Group's prospects for FY23
and aim to maintain the strong sales momentum seen over the past year.
Board succession
· Board succession planning and process underway with a focus on ensuring good
governance and a strong board composition to support the continued progression
of our strategy and YouGov's long-term success.
· As outlined in the accompanying Board Succession announcement and further in
this announcement:
o After a rigorous assessment of Board composition, the Board has unanimously
agreed that it is in the Company's best interests for Stephan Shakespeare (CEO
and Co-Founder) to take over the role of Chair when Roger Parry steps down as
planned.
o Stephan will assume the role of Chair upon a new CEO commencing in post,
intended to be on 1 August 2023.
o Nick Prettejohn, who joined the Board in June 2022 as a Non-Executive
Director, will, at the same time, take on the role of Senior Independent
Director ("SID") and Rosemary Leith, the current SID, will stay on the Board
following this planned transition.
o The appointment of a new independent Non-Executive Director is also planned to
ensure a majority of independent members on the Board following the Chair
transition.
Stephan Shakespeare, Chief Executive, said:
"Building on the momentum we saw towards the end of FY21, YouGov has delivered
another year of strong performance in FY22 against an uncertain macro-economic
backdrop. Our growth in the reported year has continued to accelerate, and we
achieved further margin improvement and robust cash generation during the
period.
Demand for YouGov's products and services remains strong and we continue to
win new clients while expanding our relationships with existing clients. As a
result, we remain cautiously optimistic on our prospects for this year as we
aim for further growth.
We continue to invest in our market-leading technology and platform and remain
laser-focused in delivering on our long-term strategy to realise the full
potential of our business and drive shareholder value. With regards to the
Board succession, I am deeply committed to the business I co-founded over two
decades ago and look forward to the next phase of our growth."
Analyst presentation
A copy of the presentation will be available online at
https://corporate.yougov.com/investors/presentations
(https://corporate.yougov.com/investors/presentations) shortly after the
full-year results announcement is live on the Regulatory News Service (RNS).
Forward looking statements
Certain statements in this full year report are forward looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations
will prove to have been correct. As these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as
a result of new information, future events or otherwise.
Enquiries:
YouGov plc 020 7012 6000
Stephan Shakespeare / Alex McIntosh / Hannah Jethwani
FTI Consulting 020 3727 1000
Charles Palmer / Tom Blundell / Jemima Gurney
Numis Securities Limited (NOMAD and Joint broker) 020 7260 1000
Nick Westlake / Iqra Amin
Berenberg (Joint Broker) 020 3207 7800
Mark Whitmore / Richard Andrews / Alix Mecklenburg-Solodkoff
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/201 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this
announcement via a Regulatory Information Service this inside information is
now considered to be in the public domain. The person responsible for
arranging release of this announcement on behalf of the Company is Alex
McIntosh, Chief Finance Officer of the Company.
About YouGov
YouGov is an international online research data and analytics technology
group.
Our mission is to offer unparalleled insight into what the world thinks.
Our innovative solutions help the world's most recognised brands, media owners
and agencies to plan, activate and track their marketing activities better.
With operations in the UK, the Americas, Europe, the Middle East, India and
Asia Pacific, we have one of the world's largest research networks.
At the core of our platform is an ever-growing source of consumer data that
has been amassed over our twenty years of operation. We call it Living Data.
All of our products and services draw upon this detailed understanding of our
22+ million registered panel members to deliver accurate, actionable consumer
insights.
As innovators and pioneers of online market research, we have a strong
reputation as a trusted source of accurate data and insights. Testament to
this, YouGov data is regularly referenced by the global press, and we are the
second most quoted market research source in the world.
YouGov. Living Consumer Intelligence.
For further information, visit business.yougov.com
Chair's Statement
As my final Chair's statement of my tenure on the YouGov plc Board of
Directors, I am extremely pleased to be able to report another year of strong
trading results for the 12 months to 31 July 2022 (FY22) in line with the
Board's expectations for the year. The past year has been a challenging one
across the globe, and our business along with its 1,650+ employees have shown
great resilience in the face of ongoing uncertainty. We have continued to
demonstrate the strength of our business model, invest in our innovative
solutions and bring our workforce together, where possible, to foster greater
collaboration and our collective success in progressing towards our long-term
strategy. While the overall macro-economic environment remains volatile, our
focus continues on maintaining the high-quality delivery that our clients have
come to expect from YouGov and supporting our workforce.
Results and dividend
During the period, Group revenue was up 31% in reported terms to £221.1m (20%
up on an underlying(1) basis) while adjusted operating profit(1) increased by
42% on the prior financial year to £36.3m. These results are a continuation
of the strong momentum we saw towards the end of the last financial year and
set us up well for further growth in FY23. YouGov has maintained a progressive
dividend policy, and in line with this, the Board is pleased to recommend a
dividend increase of 17% to 7.0p a share payable on 12 December 2022 to
shareholders on the register as at 2 December 2022.
Outlook
The lingering effects of the COVID-19 pandemic, coupled with the
Russia-Ukraine conflict, have led to significant macro-economic challenges
such as rising inflation and staff shortages. While these issues are impacting
many businesses, YouGov has started the new financial year well and trading is
in line with the Board's expectations. While the Board remains confident that
profitability will meet current market expectations for FY23, achievement of
our stretching FYP2 targets will be dependent on our ability to navigate the
difficult market conditions being faced by organisations, including the rising
cost of living and staff shortages in addition to maintaining strong sales
momentum. With a well-capitalised balance sheet and continued evidence of
growing demand for our products and services, we remain cautiously optimistic
for the future and remain focussed on progressing towards our long-term
targets.
Strategic direction
YouGov has been expanding its client relationships through a focus on
subscription products and large-scale tracking studies. We seek to establish
long-term relationships with our clients as we continue to provide them rich,
connected datasets and a range of proprietary software tools which enable them
to conduct high-quality market research that will drive their marketing and
strategic activities.
As we maintain investment in our technological platform, we aim to redefine
the concept of self-service market research and data analytics through the
development and launch of the YouGov Platform. Bringing our core products and
services under this one umbrella has the potential to unlock significant
opportunities for the business by eliminating the friction of using multiple
separate tools and making our data and tools more accessible to a wider range
of clients and for greater use cases.
For more details on the next phase of YouGov's growth story, refer to the CEO
Review below.
Long-term growth plans and incentives
The past year was the third in our current long-term strategic plan ("FYP2")
which runs to 31 July 2023. As previously announced, this plan set challenging
financial targets, including to double group revenue over the plan period
(FY19-23) and to achieve compound annual adjusted earnings per share(1)
("EPS") growth in excess of 30%. Considering the current market environment,
the Board believes that the FYP2 revenue target remains ambitious but
achievable, while our profitability improvement has been more modest as we
invested in the business to capitalise on the opportunities available in the
market. We remain committed to ensuring that the Group has the resources it
needs to realise its long-term ambition.
Our FYP2 targets underpin the current long-term incentive plan ("LTIP 2019")
which was designed to align the interests of shareholders and management, with
full vesting of the LTIP 2019 requiring compound annual adjusted EPS growth of
35% by 31 July 2023.
The Board has approved in principle the strategic direction for a new
three-year growth plan ("Strategic Plan 3" or "SP3") which will run from 1
August 2023 to 31 July 2026 (FY24-26). We will be developing the strategic
plan over the coming months and look forward to providing further details on
SP3 at a Capital Markets Day in the spring of 2023.
Succession planning
As previously announced, I will be standing down from the role of
Non-Executive Chair. In 2021, the Board appointed the leading international
executive search firm Egon Zehnder to advise on all aspects of executive and
Board succession.
With Egon Zehnder's support, the Nomination Committee conducted a rigorous and
considered assessment of the current Board composition and the business'
requirements to agree the skills, experience, structure, and roles that are
needed at Board and management level to support the Company's next phase of
growth and ensure continued, effective leadership of the Group.
During this assessment, Stephan Shakespeare, YouGov's co-founder and current
Chief Executive Officer, indicated to the Committee his desire to assume a
more strategic, non-executive leadership role within the Group, allowing him
to shift focus from day-to-day operational oversight to more long-term
development and governance once the next phase of the Group's growth strategy
had been set out.
Having determined the criteria for the next Chair, and taking into
consideration Egon Zehnder's recommendations, the Committee came to the
unanimous conclusion that the best outcome for the long-term stability and
growth of YouGov would be for Stephan to take over the role of Chair when I
step down. The full Board has unanimously approved the Committee's
recommendation for Stephan's appointment, and he has consequently been
appointed as YouGov's Non-Executive Chair Designate. Consequently, the search
for a new CEO has been launched and the Nomination Committee is currently
considering a wide variety of both external and internal candidates following
an international search process.
Stephan will assume the role of Chair upon a new CEO commencing in post,
currently intended to be on 1 August 2023 which is the start of the next
financial year. The Board, advised by Egon Zehnder, is aiming to select the
new CEO by the spring of 2023 to allow sufficient time for a hand-over period.
To ensure an orderly transition and allow adequate time to recruit the right
candidate for the CEO position, I will be put forward for re-election at the
upcoming AGM (8 December 2022), with the underlying expectation that I shall
retire on 1 August 2023.
The Board is cognisant of the potential challenges of a founder CEO moving to
Chair. Utilising Egon Zehnder's advice, we have put in place protocols and
resources to set the transition up for success, including a suite of documents
that give clarity to the separation between the CEO and Chair roles.
In June 2022, we were pleased to announce the appointment of Nick Prettejohn
as an additional Non-Executive Director ("NED"). It is intended that Nick will
take on the role of Senior Independent Director ("SID") at the same time as
Stephan's transition to Chair. Nick has a long and distinguished career as
both an executive and non-executive director, and therefore we believe he will
be of great assistance in helping Stephan navigate his new role as Chair.
Rosemary Leith, our current SID, will stay on the Board following this planned
transition and will continue as Chair of the Remuneration Committee.
To further strengthen the Board and maintain the highest levels of corporate
governance, we are also planning to appoint a further NED by the end of 2022.
Adding this new NED role, in addition to Nick, will ensure a majority of
independent members of the Board, as well as bringing further skills and
diversity to our Board, and it is commensurate to the Company's current size
and growth plans.
We are confident that we have set the right strategic direction to deliver
another long-term period of profitable growth for YouGov, and that we are
putting in place the right Board and executive team to see the plan
implemented. We will update shareholders in due course about the appointment
of a new CEO and NED.
A well-placed company
It has been a great pleasure and privilege for me to be Chair of YouGov. When
I joined YouGov in January 2007, it was a relatively small start-up business
with tremendous potential. While the Company has gone through significant
change and growth over the years, its long-term vision, to be the world's
leading provider of marketing and opinion data, has remained unwavering.
YouGov was founded as a web-based UK polling company and has evolved into a
world-class global research and data analytics provider. The success of YouGov
is the function of the hard work and talent of our executive leadership team
and wider workforce. On behalf of the shareholders, I would like to thank them
for their continued commitment to the business. I look forward to following
the YouGov story over the coming years and watching the Company reach its full
potential.
Roger Parry CBE
Chair
11 October 2022
1 Defined in the explanation of non-IFRS measures below.
Chief Executive Officer's Review
YouGov has delivered another year of solid growth, margin improvement and
robust cash generation in FY22. Against a difficult macro backdrop, we were
able to maintain our growth momentum, reporting revenue of £221.1m, up 31%,
while adjusted operating profit(1) was up 42% to £36.3m. This performance was
largely driven by the success of our commercial proposition in the Americas
and Asia Pacific as our connected data research solutions continue to resonate
well with clients.
Our subscription products have maintained their strong renewal rates and our
sales teams are increasingly able to secure longer-term contracts, giving us
better revenue visibility into future years. Coupled with our custom tracking
solutions, our high-quality data products are becoming further embedded into
clients' daily marketing workflows, therefore increasing customer stickiness
and retention.
The key levers for growth that have driven our performance this financial year
are:
· Existing clients: As we prove our ability to meet clients' complex research
needs in a fast, accurate way, our clients are expanding their relationship
with us over time.
· New clients: Our new business sales teams continue to make progress in growing
our client base as organisations value real-time data more than ever before.
· New markets: Our global panel expansion last year continues to help us win
contracts with large multi-nationals globally.
· New products: While growing off a small base, our new initiatives are showing
encouraging results and we will look to expand and monetise our investments in
these over the coming years.
· Operational efficiencies: Our rapidly growing CenX are helping standardise our
research and support operations which will result in greater operational
leverage as our business grows.
· Acquisitions: Our latest two acquisitions, LINK and Rezonence, have added new
research and technological capabilities to our business and are contributing
to performance in line with initial expectations.
Delivering on our strategic priorities
Based on our strategy, we have previously identified five key priorities that
will be a focus in the near term. Our ability to successfully execute on these
priorities will ultimately determine delivery of management targets set out in
our current long-term strategic growth plan ("FYP2"). The key progress made
under each of these priorities during this financial year has been set out
below.
Product development and technology
· Continued the development of the YouGov Platform into a public-facing
dashboard that will enable high-quality, self-service research for more
standardised needs
· Expanded our suite of products in response to client demand, such as Global
Profiles, the largest globally consistent audience dataset, and YouGov
Finance, our fully permissioned, verified financial transaction data product
· Continued investment to improve the client user experience for our data
products as well as enhance our panel-facing app
Panel
· Growth in our global research panel of 27% in FY22 to 22 million registered
members, ensuring we were able to meet our clients' research needs
· Initiated the use of YouGov Chat, our chatbot technology, to augment and grow
our global panel through an innovative content-driven approach and to acquire
niche audiences
Global accounts
· Several significant client wins during the year as our account management team
increased our share of wallet using a combined Data Products and custom
tracking proposition
· Increasing contribution from the new business sales team with a clear focus on
expanding the client base and targeting larger global mandates
Global infrastructure
· Continued to expand the role played by our CenX in our day-to-day support
operations and the delivery of our data products and research services
· Established our newest CenX in Mexico City to diversify our operations and
increase availability of support for our US operations
Acquisitions
· Acquisition of LINK in Switzerland significantly expands our Mainland Europe
business and adds valuable social research capabilities and strong
multi-national relationships to our client roster
· Rezonence acquisition scales our activation capabilities and enables data
collection at unprecedented scale through publisher partnerships
Environmental, social and governance ("ESG")
Our commitment to ESG is core to what we do. We operate lawfully and ethically
in all areas of ESG relevant to our business, from how we collect data from
panel members and how we engage and develop our workforce, to the design of
our research and how we service our clients. In line with our business
strategy, we focus on the ESG areas where we can add the most value.
This approach is defined in our ESG Roadmap, first published in 2021. We
achieved our goals ahead of schedule in mid-2022 and have since expanded our
commitments in a second ESG Roadmap that sets overall company objectives
supported by individual environmental, social and governance strategies. This
reflects our efforts to meet growing stakeholder expectations and embed ESG
throughout the business.
Our social mission is to make people's opinions heard for the benefit of the
wider community and social value. We have defined this mission as "Giving a
Voice", which is a key strategic theme of our second ESG Roadmap. This
encompasses our unparalleled public data offering, our ongoing efforts to
ensure our panel is as representative as possible, and our socially-oriented
work with clients, partners, and suppliers. This is supported by our
commitment to fostering a diverse workforce in an inclusive workplace that
reflects the global society in which we operate.
We are a naturally low-emission business, but we take a proactive approach to
mitigating our environmental impact. In 2022, we received our first Bronze
SUPER Certification for single-use plastic reduction in our London office,
with certification in progress for several other global offices. We signed the
MRS Net Zero Pledge to achieve net zero in the UK by 2026, and in our second
ESG Roadmap we have committed to setting net zero targets for our other global
markets, as well as verifying our company target.
Our ESG progress would not be possible without the continued excellence of our
Governance department. Our new mandatory training curriculum, with neutrality
and our Global Code of Conduct & Ethics at the core, ensures that our
values and expectations are understood by all employees. We hold the same
expectations for our suppliers, which is enforced through our robust Supplier
Approval Process and supported by our new Supplier Code of Conduct. Through
our rigorous governance framework, we embed transparency and accountability
through our policies and processes.
Current trading and outlook
Trading for the current financial year has started off well across all our
divisions with continued growth in revenue. While we continue to see no
material changes in client behaviour due to the current macroeconomic
environment and outlook, we recognise that the upcoming months and key
subscription contract renewal season will determine our ability to meet our
stated targets. We remain cautiously optimistic on the Group's prospects for
FY23 and aim to maintain the strong sales momentum seen over the past year.
With the majority of our investments completed in the first part of our plan,
our focus for this financial year remains to grow revenue well ahead of our
cost base to ensure we are benefitting from operational leverage. We continue
to retain strong cash balances and no debt, allowing us to invest prudently
where necessary and we expect capital expenditures for FY23 to be lower than
the prior year.
Strategic direction
Our vision is for YouGov to be the world's leading provider of marketing and
opinion data. We want YouGov data to be a valued public resource used by
hundreds of millions of people on a daily basis, enabling intelligent
decision-making and informed conversations.
Current long-term strategic growth plan ("FYP2") - FY19-23
Our current plan, FYP2, was centred around expanding our global reach,
reshaping our organisation and developing the final pieces of technology that
will form an essential part of the YouGov Platform. We have entered the final
year of our current long-term growth plan and continue to execute in line with
our expectations.
As previously announced, the ambitious long-term incentive plan ("LTIP")
performance targets accompanying FYP2 to incentivise senior management through
to FY23 are:
· double Group revenue;
· double Group adjusted operating profit margin(1); and
· achieve an adjusted earnings per share(1) compound annual growth rate in
excess of 30%.
As previously disclosed, in the first half of our plan we had invested heavily
in our panels, technologies, platforms, support functions and markets to
enable us to scale further and make the most of the opportunities we see in
our markets. We are now focussed on execution and capitalising on the
foundation we have built to drive further growth momentum into FY23 and
beyond.
Strategic Plan 3 ("SP3") - FY24-26
In our next long-term strategic growth plan, SP3, we intend to deepen our
strategy and evolve the business to achieve its ultimate vision, which is to
become the leading market research tool that organisations around the world
can use to better serve the people and communities that sustain them.
Throughout our journey over the last few years, we have strived to truly adapt
our business to meet the changing needs of our clients. The importance of
listening to our clients and members cannot be underestimated as they both
form the cornerstone of the YouGov Platform.
As part of our next strategic plan, we intend to remain laser focussed on
developing and scaling the use of the YouGov Platform which will bring
together our syndicated data products and self-serve research tools to allow
clients to analyse our data and run high-quality research studies with minimal
interaction with our researchers. The quality of data and ease of use for
clients will be the greatest priority as we aim to achieve technology-driven
scale through greater standardisation.
For more complex client needs, we will continue to operate a custom research
practice that will specialise in using the YouGov Platform for a
differentiated offering that will benefit from a privileged understanding of
the system. This division will thrive on building and nurturing long-term
client relationships using rich, connected datasets to drive key marketing and
strategic activities.
Ultimately, with different go-to-market strategies and strategic priorities,
the two divisions will capitalise on their inherent strengths and drive growth
over the medium term.
The key financial targets for SP3 and associated LTIP will be set out in due
course.
CEO succession
As discussed above, the Board has commenced the search for a new CEO who will
take the helm at YouGov for its next phase of growth, implementing the next
strategic plan. I am deeply committed to the Company I founded over two
decades ago and will continue to lead the business until my successor takes
over, at which point I will transition into the position of Chair. The Board,
with the help of Egon Zehnder, has put in place a clear framework that will
guide this transition and I intend to uphold the highest standards of
corporate governance during my time as Chair. I am honoured to have been
selected by the Board and I look forward to supporting the Company and being a
sparring partner for the executive team over the coming years.
As I prepare to transition from my current role as CEO, I am hugely proud of
the business we have built over the last 22 years. I am confident that I will
be handing over the reins with the Group in its strongest ever position and a
clear strategy to realising our vision of building the world's leading market
research platform. In the meantime, I am fully engaged and committed in my
position as CEO and focussed on the current year.
We are excited about the opportunities lying ahead and delivering shareholder
value as we execute on our long-term growth plans.
On behalf of the Board, I thank all our registered members, partners, clients,
and employees for their ongoing contribution and commitment to YouGov's
continued success in these challenging times.
Stephan Shakespeare
Chief Executive Officer
11 October 2022
1 Defined in the explanation of non-IFRS measures below.
Chief Finance Officer's Review
The Group continued to achieve strong performance in the 12 months to 31 July
2022 as we enter the final year of our current long-term strategic growth plan
which ends on 31 July 2023. The business has shown resilience against an
uncertain macro-economic backdrop demonstrated by our ability to grow well
ahead of the market research industry (ESOMAR estimates that the established
research segment grew 9.1% in 2021).
Total Group revenue in the period grew 31% to £221.1m, (FY21: £169.0m),
driven by double-digit growth across all three reporting divisions and all
geographies. Growth was 20% on an underlying(1) basis, excluding the impact of
acquisitions and movement in foreign exchange rates.
Adjusted operating margins
Gross margins remained stable at 85%, as greater efficiencies from panel-based
custom work were offset by continued investment to expand the number of
sectors, brands and geographies covered by our syndicated data products.
Group operating costs (excluding separately reported items) of £151.1m (FY21:
£117.3m) increased by 29% in reported terms. Adjusted operating profit(1)
increased by 42% to £36.3m on a reported basis (33% on an underlying(1)
basis), representing an improvement in the adjusted operating margin to 16.4%
(FY21: 15.1%), despite continued investment in the business and increasing
inflationary pressures. The Group's statutory operating profit increased to
£30.0m (FY21: £19.0m), after charging other separately reported items of
£6.3m (FY21: £6.5m).
Performance by division
YouGov's lines of business fall into three divisions: Data Products, Data
Services and Custom Research.
Data Products
Our syndicated data products suite includes YouGov BrandIndex and YouGov
Profiles as well as newer behavioural and transactional data.
During this financial year, our Data Products division maintained its strong
momentum seen in H2 FY21, as our sales teams prioritised new syndicated
product sales and delivered solid renewal rates. Additionally, an increase in
multi-year subscription deals sold in the period has improved our visibility
into the coming year. Revenue from Data Products increased by 28% (23% growth
in underlying(1) terms) in the period. The adjusted operating profit(1) from
Data Products increased by 39% to £27.0m on the back of higher operational
leverage, resulting in a 280bps improvement in the adjusted operating
margin(1) to 36% (FY21: 33%).
Geographically, the US remains the largest Data Products market and grew by
32% in the period (26% from the underlying(1) business) as we continue to
increase our brand awareness and market penetration in the region among large
multi-nationals across several industries.
Data Services
Our Data Services division consists of our fast-turnaround research services,
including our market-leading YouGov RealTime Omnibus.
Following stellar performance in the prior year, and a muted first half,
growth in our Data Services division returned to normalised levels in the
second half through increased focus on sales of fast-turnaround projects by
our teams. Revenue increased by 11% in reported and underlying(1) terms to
£50.7m, following strong performance particularly in the Asia Pacific region.
Growth in the UK and US was more subdued, while Mainland Europe saw 7%
reported growth in the period against a high comparable base.
The division's lower performance led to a 13% decline in adjusted operating
profit(1) and the margin decreased from 19% to 15%, as the division had to
absorb investment in panel and technology costs.
Custom Research
Our Custom Research division includes tailored research projects and tracking
studies.
During the period, the division's revenue grew by 46% in reported terms to
£95.6m, mainly due to the inclusion of the LINK acquisition. On an
underlying(1) basis, revenue growth was 21%, driven largely by the US where
our connected data proposition is increasingly resonating with clients,
particularly in the technology and gaming sector.
The adjusted operating profit(1) increased by 54% to £21.0m and the adjusted
operating margin expanded to 22% (FY21: 21%), as efficiencies in the division
were offset by higher amortisation of acquisition-related intangibles owing to
the LINK acquisition.
Revenue Year to Year to Revenue growth Underlying(1) revenue change %
31 July 2022 31 July 2021 %
£m £m
Data Products 74.1 58.0 28% 23%
Data Services 50.7 45.5 11% 11%
Custom Research 95.6 65.6 46% 21%
Intra-Group and Central revenues 0.7 (0.1) - -
Group 221.1 169.0 31% 20%
Adjusted Operating Profit(1) Year to Year to Adjusted Operating Adjusted Operating Margin %
31 July 2022 31 July 2021 Profit growth
£m £m %
Year to Year to
31 July 2022 31 July 2021
Data Products 27.0 19.4 39% 36% 33%
Data Services 7.7 8.8 (13%) 15% 19%
Custom Research 21.0 13.6 54% 22% 21%
Central costs (19.4) (16.3) - - -
Group 36.3 25.5 42% 16% 15%
Performance by geography
YouGov's geographic footprint spans the UK, Mainland Europe, the Americas,
Asia Pacific and the Middle East.
Revenue Year to Year to Revenue Underlying(1)
31 July 2022 31 July 2021 growth revenue
£m £m % change %
UK 57.9 52.1 11% 10%
Americas 99.5 74.8 33% 27%
Mainland Europe 45.7 30.6 49% 13%
Middle East 6.2 4.9 27% 25%
Asia Pacific 20.8 14.0 49% 32%
Intra-Group revenues (9.0) (7.4) - -
Group 221.1 169.0 31% 20%
Adjusted Operating Profit(1) Year to Year to Operating Operating Margin %
31 July 2022 31 Jul Profit growth
£m 2021 %
£m
Year to Year to
31 July 2022 31 July 2021
UK 17.8 16.6 7% 31% 32%
Americas 32.1 23.0 40% 32% 31%
Mainland Europe 3.3 3.2 3% 7% 10%
Middle East 1.7 0.4 - 27% 8%
Asia Pacific 1.8 (0.1) - 9% (1%)
Central costs (20.4) (17.6) - - -
Group 36.3 25.5 42% 16% 15%
Panel development by geography
We continued to invest in our consumer panel to ensure we are able to meet our
clients' research needs and to deliver nationally representative samples in
our newer markets. As at 31 July 2022, the total number of registered
panellists had increased by 27% to 22.25 million, compared to 17.48 million at
31 July 2021, as set out in the table below.
Region Panel size at Panel size at Change
31 July 2022 31 July 2021 %
millions millions
UK 2.67 2.50 7%
Americas 8.05 6.35 27%
Mainland Europe 4.93 3.64 35%
MENA 2.76 2.18 27%
Asia Pacific 3.85 2.81 37%
Total 22.25 17.48 27%
Group financial performance
Prior year restatements
Following a routine Financial Reporting Council ("FRC") review of the
consolidated financial statements for the year ended 31 July 2021, the Group
engaged with the FRC which resulted in several adjustments. We welcomed the
FRC's review and have set out the restatements in the basis of preparation in
the accompanying financial statements below.
Amortisation of intangible assets
In the 12 months to 31 July 2022, amortisation charges for intangible assets
of £20.4m were £5.1m higher than the previous year. Amortisation of the
consumer panel increased by £2.8m to £9.9m, reflecting the increased panel
investment made in the year and accelerated amortisation of some of our newer
panels. Amortisation of software increased by £1.2m to £9.1m. £7.7m (FY21:
£4.9m) of the total software development charge related to assets created
through the Group's own internal development activities, £0.8m (FY21: £0.6m)
related to separately acquired assets and £0.5m (FY21: £2.4m) was for
amortisation on assets acquired through business combinations.
Separately reported items
Acquisition-related costs in the year comprise £5.2m of contingent
consideration treated as staff costs in respect of the acquisitions of
Portent.io Limited, Charlton Insights Inc., YouGov Finance Limited (formerly
Lean App Limited) and Faster Horses Pty Limited, and £1.1m of transaction
costs in respect of the newly acquired entities.
Acquisition-related costs in the prior year comprise of £6.5m in contingent
consideration treated as staff costs in respect of the acquisitions of SMG
Insight Limited, InConversation Media Limited, Portent.io Limited, Charlton
Insights Inc., YouGov Finance Limited (formerly Lean App Limited) and Faster
Horses Pty Limited, and £0.3m of transactions costs in respect of the newly
acquired entities, offset by £0.3m income from insurance rebate for SMG
Insight Limited litigation costs.
Analysis of operating profit and earnings per share
Adjusted profit before tax(1) of £34.7m was an increase of 11% versus the
prior year, lower than the operating profit growth due to £3.7m of foreign
exchange losses related to intercompany loans, largely between our US and UK
entities. The adjusted tax rate(1) was stable at 24%. Statutory profit before
tax of £25.3m was reported compared to £18.9m in the year ended 31 July
2021, an increase of 34%.
The IFRS 2 share-based payment charge is not tax deductible. However, in our
largest markets (UK and US), when share options are exercised the gain made is
an allowable tax deduction. This timing difference gives rise to deferred tax.
The FY21 expected tax cost in aggregate was correct, but the allocation
between income statement and equity has been restated. Refer to the basis of
preparation in the accompanying financial statements below for further
details.
During the period adjusted earnings per share(1) grew by 9% from 21.7p to
23.7p, due to absorption of the aforementioned foreign exchange losses, and
statutory earnings per share increased from 11.5p to 15.7p.
31 July 31 July
2022 2021
£m £m
Adjusted operating profit(1) 36.3 25.5
Share-based payments 2.9 5.1
Social taxes payable on share-based payments 0.0 0.5
Imputed interest 0.1 0.1
Net finance expense (4.6) -
Adjusted profit before tax(1) 34.7 31.2
Adjusted taxation(1) (8.4) (7.4)
Adjusted profit after tax(1) 26.3 23.8
Adjusted earnings per share (pence)(1) 23.7p 21.7p
Cash flow and capital expenditure
The Group generated £69.7m (FY21: £45.1m) in cash from operations (before
paying interest and tax) including a £6.6m (FY21: £4.1m) net working capital
inflow; the cash conversion rate (percentage of adjusted EBITDA(1) converted
to cash) increased from 98% to 113% of adjusted EBITDA(1). Taxation payments
for the year totalled £6.9m (FY21: £7.1m).
Under IFRS, payments for business acquisitions made to current employees are
treated as an operating cost. Previously, the cash flow for these payments had
been treated as investing in nature. As such for FY21, £9.8m of deferred
consideration cash flow has been restated to be shown as operating cash flow.
Refer to the basis of preparation in the accompanying financial statements
below for further details.
The Group invested £6.9m (FY21: £7.8m) in the continuing development of our
technology platform internally and £1.1m (FY21: £1.6m) was invested on
separately-acquired software tools. Investment in panel recruitment was lower
in the year at £8.0m (FY21: £10.5m) as we had carried out a major expansion
of our panel into new markets in the prior year. The broadened geographic
footprint of our panel, mainly in Europe and Latin America, has allowed our
teams to win several new large, multi-national clients looking for globally
consistent custom brand tracking. In addition, £1.5m (FY21: £1.2m) was spent
on the purchase of property, plant and equipment, resulting in a total
investment in fixed assets of £17.5m (FY21: £21.1m).
Total expenditure on intangible assets and property, plant and equipment is
shown below:
31 July 31 July
2022 2021
£m £m
Software development 8.0 9.4
Panel recruitment 8.0 10.5
Total expenditure on intangible assets 16.0 19.9
Purchase of property, plant and equipment 1.5 1.2
Total capital expenditure 17.5 21.1
Other cash outflows for investing activities included £25.4m paid in respect
of the acquisitions of LINK and Rezonence in the first half of the year.
Net expenditure on financing activities of £20.0m (FY21: 11.5m) included the
dividend payment of £6.7m (FY21: £5.5m) and the purchase of treasury shares
for £9.9m to satisfy future employee share option exercises (FY21: £2.2m).
The £20.0m revolving facility drawn earlier in the year was repaid in the
second half of the year using internal cash generation.
Net cash balances at the year-end increased by £1.9m to £37.4m. Net cash
outflow in the year was £1.0m (FY21: inflow of £2.3m) and currency
fluctuations in the year resulted in an exchange gain of £2.9m (FY21: loss of
£2.1m).
Acquisitions
During the year, the Group completed the acquisition of Rezonence and LINK.
Rezonence, acquired for £5.1m in October 2021, is a technology business with
a patented FreeWall® technology, an interactive advertising format that
facilitates access to premium online content after consumers engage with an
advert or taking a micro-survey.
LINK is the leading Swiss market and social research agency with longstanding
relationships with leading Swiss companies and global blue-chip clients in the
financial services, FMCG, retail industries and government sector. Total
consideration paid for LINK was £21.3m and the business contributed £12.5m
in revenue during FY22.
Currency
The Group's results were impacted by the net depreciation of the UK Sterling,
as its average exchange rate was 3% lower against the US Dollar in this period
against the prior period. Movement against the Euro was 4% higher compared to
31 July 2021. The net impact of foreign exchange on the Group's adjusted
operating profit(1) was an increase of £1.2m compared to calculation in
constant currency terms.
Balance sheet
As at 31 July 2022, total shareholders' funds increased from £112.7m to
£125.3m. Net assets increased from £112.0m to £125.0m, with a minority
interest of £0.3m accounting for the difference. Net current assets decreased
from £15.2m to £4.7m. Current assets increased by £12.8m to £95.2m, mainly
due to a £13.0m increase in trade and other receivables, with debtor days
decreasing from 37 to 35. Current liabilities increased by £23.3m to £90.5m,
mainly due to an increase in trade and other payables of £19.0m, with
creditor days increasing from 50 days to 52 days at 31 July 2022. Non-current
liabilities increased by £5.6m to £24.9m due to a rise of £1.6m in
provisions, and a £1.3m increase in deferred tax liabilities in addition to
the recognition of £2.0m for a defined benefit pension scheme net liability
in relation to the acquisition of LINK.
Proposed dividend
The Board is recommending the payment of a final dividend of 7.0p per share
for the year ended 31 July 2022. If shareholders approve the dividend at the
AGM (scheduled for 8 December 2022), it will be paid on Monday 12 December
2022 to all shareholders who were on the Register of Members at close of
business on Friday 2 December 2022.
Alex McIntosh
Chief Finance Officer
11 October 2022
1 Defined in the explanation of non-IFRS measures below.
Explanation of non-IFRS measures
Financial measure How we define it Why we use it
Separately reported items Items that in the Directors' judgement are one-off or need to be disclosed Provides a more comparable basis to assess the year-to-year operational
separately by virtue of their size or incidence business performance
Adjusted operating profit Operating profit excluding separately reported items
Adjusted operating profit margin Adjusted operating profit expressed as a percentage of revenue
Adjusted EBITDA Adjusted operating profit before depreciation and amortisation
Adjusted profit before tax Profit before tax before share-based payment charges, social taxes on
share-based payments, imputed interest and separately reported items
Underlying growth Growth in business excluding impact of current and prior period acquisitions
and business closures, and movement in exchange rates (i.e. current year
performance calculated with exchange rates held constant at prior year rates).
Adjusted taxation Taxation due on the adjusted profit before tax, thus excluding the tax effect Provides a more comparable basis to assess the underlying tax rate
of exceptional items
Adjusted tax rate Adjusted taxation expressed as a percentage of adjusted profit before tax
Adjusted profit after tax Adjusted profit before tax less adjusted taxation Facilitates performance evaluation, individually and relative to other
companies
Adjusted profit after tax attributable to owners of the parent Adjusted profit after tax less profit attributable to non-controlling
interests
Adjusted earnings per share Adjusted profit after tax attributable to owners of the parent divided by the
weighted average number of shares. Adjusted diluted earnings per share
includes the impact of dilutive share options
Constant currency revenue change Current year revenue compared to prior year revenue in local currency Shows the underlying revenue change by eliminating the impact of foreign
translated at the current year average exchange rates exchange rate movements
Cash conversion The ratio of cash generated from operations to adjusted EBITDA Indicates the extent to which the business generates cash from adjusted
operating profits
Compound annual growth rate (CAGR) The annualised average rate of growth between two given years, assuming growth Indicates the mean annual growth rate for a specified period of time longer
takes place at a cumulative rate than one year
Reconciliation of non-IFRS measures
Revenue reconciliation Year to Year to Change
31 July 2022 31 July 2021 %
£m £m
Revenue 221.1 169.0 31%
FX impact - 2.5 -
Acquisitions (16.8) (0.7) -
Kurdistan closure - (0.1) -
Underlying revenue 204.3 170.7 20%
Operating Profit reconciliation Year to Year to Change
31 July 2022 31 July 2021 %
£m £m
Statutory Operating Profit 30.0 19.0 58%
Acquisition-related costs 6.3 6.5 (3%)
Adjusted Operating Profit 36.3 25.5 42%
FX impact - 1.2 -
Acquisitions (0.2) (0.1) -
Kurdistan closure - 0.6 -
Underlying(1) operating profit 36.1 27.2 33%
Adjusted EBITDA(1) reconciliation Year to Year to Change
31 July 2022 31 July 2021 %
£m £m
Adjusted Operating Profit 36.3 25.5 42%
Depreciation 4.9 5.1 (4%)
Amortisation 20.4 15.3 33%
Adjusted EBITDA 61.6 45.9 34%
1 Defined in the explanation of non-IFRS measures above.
Publication of Non-Statutory Accounts
The financial information relating to the year ended 31 July 2022 set out
below does not constitute the Group's statutory accounts for that year but has
been extracted from the statutory accounts, which received an unqualified
auditors' report and which have not yet been filed with the Registrar.
Consolidated Income Statement
for the year ended 31 July 2022
2022 2021
(restated)¹
Note £m £m
Revenue 1 221.1 169.0
Cost of sales (33.7) (26.2)
Gross profit 187.4 142.8
Administrative expenses (157.4) (123.8)
Operating profit 1 30.0 19.0
Separately reported items 2 6.3 6.5
Adjusted operating profit 1 36.3 25.5
Finance income - 0.4
Finance costs (4.7) (0.5)
Profit before taxation 1 25.3 18.9
Taxation¹ 3 (7.8) (6.4)
Profit after taxation 1 17.5 12.5
Attributable to:
- Owners of the parent 17.1 12.5
- Non-controlling interests 0.4 -
17.5 12.5
Earnings per share
Basic earnings per share attributable to owners of the parent¹ 5 15.7 11.5p
Diluted earnings per share attributable to owners of the parent¹ 5 15.4 11.2p
¹Comparatives have been restated, as explained in the FY21 restatements
section below.
All operations are continuing.
Consolidated Statement of Comprehensive Income
for the year ended 31 July 2022
2022 2021
(restated)¹
£m £m
Profit for the year¹ 17.5 12.5
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss
Actuarial gains 1.2 -
Items that may be subsequently reclassified to profit or loss
Currency translation differences 7.0 (7.5)
Other comprehensive income/(expense) for the year 8.2 (7.5)
Total comprehensive income for the year 25.7 5.0
Attributable to:
- Owners of the parent 25.3 5.0
- Non-controlling interests 0.4 -
Total comprehensive income for the year 25.7 5.0
¹Comparative has been restated, as explained in the FY21 restatements section
below.
Items in the statement above are disclosed net of tax.
Consolidated Statement of Financial Position
for the year ended 31 July 2022
2022 2021
(restated)¹
Note £m £m
Assets
Non-current assets
Goodwill 7 80.4 60.5
Other intangible assets 8 38.0 29.2
Property, plant and equipment 4.2 3.2
Right of use assets 9 11.3 12.1
Deferred tax assets¹ 11.3 11.1
Total non-current assets 145.2 116.1
Current assets
Trade and other receivables 10 53.7 40.7
Current tax assets 4.1 6.2
Cash and cash equivalents 37.4 35.5
Total current assets 95.2 82.4
Total assets 240.4 198.5
Liabilities
Current liabilities
Trade and other payables 11 66.8 47.8
Current tax liabilities 3.5 5.4
Contingent consideration 6.1 2.2
Provisions 11.2 8.7
Borrowings - -
Lease liabilities 2.9 3.1
Total current liabilities 90.5 67.2
Net current assets 4.7 15.2
Non-current liabilities
Contingent consideration 2.4 0.9
Provisions 6.7 5.1
Defined benefit pension scheme net liability 2.0 -
Lease liabilities 9.3 10.1
Deferred tax liabilities¹ 4.5 3.2
Total non-current liabilities 24.9 19.3
Total liabilities 115.4 86.5
Net assets 125.0 112.0
Equity
Issued share capital 0.2 0.2
Share premium 31.5 31.5
Treasury reserve (9.6) (2.3)
Merger reserve 9.2 9.2
Foreign exchange reserve 14.6 7.6
Retained earnings 79.4 66.5
Total equity attributable to owners of the parent 125.3 112.7
Non-controlling interests in equity (0.3) (0.7)
Total equity 125.0 112.0
¹ Comparatives have been restated, as explained in the FY21 restatements
section below.
Consolidated Statement of Changes in Equity
for the year ended 31 July 2022
Attributable to equity holders of the Company
Issued share capital Share premium Treasury reserve Merger reserve Foreign exchange reserve Retained earnings Equity attributable to owners of the parent Non- controlling interests in equity Total
(restated)¹
£m £m £m £m £m £m £m £m £m
Balance at 1 August 2020 0.2 31.4 (1.7) 9.2 15.1 55.8 110.0 (0.7) 109.3
Exchange differences on translation - - - - (7.5) - (7.5) - (7.5)
Net loss recognised directly in equity - - - - (7.5) - (7.5) - (7.5)
Profit for the year¹ - - - - - 12.5 12.5 - 12.5
Total comprehensive income/(expense) for the year - - - - (7.5) 12.5 5.0 - 5.0
Issue of shares - 0.1 - - - - 0.1 - 0.1
Acquisition of treasury shares - - (2.2) - - - (2.2) - (2.2)
Treasury shares used to settle share option exercises - - 1.6 - - (1.6) - - -
Dividends paid - - - - - (5.5) (5.5) - (5.5)
Share-based payments - - - - - 5.1 5.1 - 5.1
Tax in relation to share-based payments¹ - - - - - 0.2 0.2 - 0.2
Total transactions with owners recognised directly in equity - 0.1 (0.6) - - (1.8) (2.3) - (2.3)
Balance at 31 July 2021 0.2 31.5 (2.3) 9.2 7.6 66.5 112.7 (0.7) 112.0
Actuarial gains - - - - - 1.2 1.2 - 1.2
Exchange differences on translation - - - - 7.0 - 7.0 - 7.0
Net gain recognised directly in equity - - - - 7.0 1.2 8.2 - 8.2
Profit/(Loss) for the year - - - - - 17.1 17.1 0.4 17.5
Total comprehensive income/(expense) for the year - - - - 7.0 18.3 25.3 0.4 25.7
Issue of shares - - - - - - - - -
Acquisition of treasury shares - - (9.9) - - - (9.9) - (9.9)
Treasury shares used to settle share option exercises - - 2.6 - - (2.6) - - -
Dividends paid - - - - - (6.7) (6.7) - (6.7)
Share-based payments - - - - - 2.9 2.9 - 2.9
Tax in relation to share-based payments - - - - - 1.0 1.0 - 1.0
Total transactions with owners recognised directly in equity - - (7.3) - - (5.4) (12.7) - (12.7)
Balance at 31 July 2022 0.2 31.5 (9.6) 9.2 14.6 79.4 125.3 (0.3) 125.0
¹Comparatives have been restated, as explained in the FY21 restatements
section below.
Consolidated Statement of Cash Flows
for the year ended 31 July 2022
2022 2021
(restated)¹
£m £m
Cash flows from operating activities
Profit before taxation 25.3 18.9
Adjustments for:
Finance income - (0.2)
Finance costs 1.0 0.5
Amortisation of intangibles 20.4 15.3
Depreciation 4.9 5.1
Share-based payments 2.9 5.1
Other non-cash items(2) 8.6 6.1
Settlement of deferred consideration¹ - (9.8)
(Increase)/Decrease in trade and other receivables¹ (4.4) (5.8)
(Decrease)/Increase in trade and other payables¹ 9.5 8.3
Increase in provisions¹ 1.5 1.6
Cash generated from operations 69.7 45.1
Interest paid (0.9) (0.5)
Income taxes paid (6.9) (7.1)
Net cash generated from operating activities 61.9 37.5
Cash flow from investing activities
Acquisition of subsidiaries (net of cash acquired) (25.4) (2.8)
Purchase of property, plant and equipment (1.5) (1.2)
Purchase of intangible assets¹ (16.0) (19.9)
Interest received - 0.2
Net cash used in investing activities (42.9) (23.7)
Cash flows from financing activities
Proceeds from the issue of share capital - 0.1
Principal element of lease payments (3.4) (3.9)
Draw down of bank loans 20.0 -
Repayment of bank loans (20.0) -
Dividends paid to shareholders (6.7) (5.5)
Purchase of treasury shares (9.9) (2.2)
Net cash used in financing activities (20.0) (11.5)
Net (decrease)/increase in cash and cash equivalents (1.0) 2.3
Cash and cash equivalents at beginning of year 35.5 35.3
Exchange gain/(loss) on cash and cash equivalents¹ 2.9 (2.1)
Cash and cash equivalents at end of year 37.4 35.5
¹ Comparatives have been restated, as explained in the FY21 restatements
section below.
(2)Includes £5.2m (2021: £6.5m) of contingent consideration in respect of
acquisitions treated as staff costs (Note 4) and foreign exchange costs (Note
5).
Notes to the Consolidated Financial Statements
for the year ended 31 July 2022
Nature of operations
YouGov plc and subsidiaries' (the "Group") principal activity is the provision
of digital market research.
YouGov plc (the "Company") is the Group's ultimate Parent Company. It is a
public limited company incorporated and domiciled in the United Kingdom. The
address of YouGov plc's registered office is 50 Featherstone Street, London
EC1Y 8RT, United Kingdom. YouGov plc's shares are listed on the Alternative
Investment Market of the London Stock Exchange.
YouGov plc's annual consolidated financial statements are presented in UK
Sterling, which is also the functional currency of the Parent Company. Figures
are rounded to the nearest million UK Sterling, unless otherwise indicated.
Basis of preparation
The following financial information does not amount to full financial
statements within the meaning of Section 434 of Companies Act 2006. The
financial information has been extracted from the Group's Annual Report and
Financial Statements for the year ended 31 July 2022.
The consolidated financial statements of YouGov plc have been prepared under
the historical cost convention modified for fair values under International
Financial Reporting Standards ("IFRS"). Financial assets, such as defined
benefit pension scheme assets, and financial liabilities, such as contingent
consideration, are measured at fair value. These consolidated financial
statements have been prepared in accordance with UK-adopted international
accounting standards in conformity with the requirements of the Companies Act
2006 applicable to companies reporting under IFRS.
Financial statements for the year ended 31 July 2021 have been delivered to
the Registrar of Companies; the report of the auditors on those accounts was
unqualified and did not contain a statement under Section 498 of the Companies
Act 2006. Copies of the 2022 Annual Report and Financial Statements will be
posted to shareholders shortly and will be available from the Company's
registered office at 50 Featherstone Street, London, EC1Y 8RT.
FY21 restatements
Following a Financial Reporting Council ("FRC") review of the consolidated
financial statements for the year ended 31 July 2021, the Group restated tax
on share-based payments to appropriately reflect its allocation between equity
and the income statement, and restated its cash flow statement for several
adjustments, the most significant of which was to reclassify deferred
consideration payable to current employees as an operating cash flow.
The above restatements did not have a material effect on the information
presented in the statement of financial position as at the beginning of the
earliest comparative period. As a result, a third balance sheet has not been
presented.
Taxation
The IFRS 2 share-based payment charge is not tax deductible. However, in our
largest markets (UK and US), when share options are exercised, the gain made
is an allowable tax deduction. This timing difference gives rise to a deferred
tax asset under para 68c of IAS 12.
The FY21 expected tax cost in aggregate was correct, but the allocation
between the income statement and equity has been restated as follows:
- Group income statement tax charge: £1.0m decrease, being the increase in
current tax charge of £1.4m offset by the decrease in deferred tax charge of
£2.4m
- Parent Company income statement tax charge: £1.4m decrease, being the
increase in current tax charge of £1.4m offset by the decrease in deferred
tax charge of £2.8m
- Group retained earnings: £1.0m increase, being the movements as noted in
the Taxation section above
- Parent Company retained earnings: £1.4m increase, being the movements as
noted in the Taxation section above
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
Also, the FY21 deferred taxation has been restated by a £2.6m increase in the
deferred tax asset, being the reclassification of a potential withholding tax
liability to the deferred tax liability account.
Consolidated Statement of Cash Flows
Under IFRS, payments for business acquisitions made to current employees are
treated as an operating cost. The cash flow for these payments had been
treated as investing in nature. Following the review by the FRC, the £9.8m
deferred consideration cash flow has been restated to be shown as operating.
The review also flagged some smaller cash flow disclosure adjustments that are
needed. These have been restated in the FY21 Consolidated Statement of Cash
Flows as set out below:
2021 2021 2021
(published) (restated) (net impact)
£m £m £m
(Increase)/Decrease in trade and other receivables (6.5) (5.8) (0.7)
(Decrease)/Increase in trade and other payables 9.3 8.3 1.0
Increase in provisions 3.0 1.6 1.4
Purchase of intangible assets (22.6) (19.9) (2.7)
Exchange (loss)/gain on cash and cash equivalents (1.1) (2.1) 1.0
(17.9) (17.9) -
Note, the changes reclassify cash flows between lines with a £nil net impact
on the Group's financial position and performance.
Going concern
The Group meets its day-to-day working capital requirements through its strong
cash reserves and has access to a Revolving Credit Facility. At 31 July 2022,
the Group had a healthy liquidity position, with £37.4m of cash and cash
equivalents and no debt financing commitments. The Group has net current
assets of £4.7m and net assets of £125.0m as at 31 July 2022.
In assessing going concern, management has considered the economic and
political effects of rising inflation and the Russian invasion of Ukraine in
February 2022, including the impact on the Group's operations, budget for the
year ended 31 July 2023 and forecast for 2024. Following the escalation of the
Russo-Ukrainian conflict, management performed a business impact and risk
assessment. YouGov's business activity within Russia is not significant
(<£1m of revenue) and very few international clients are subscribing for
Russian data, so no material direct impact is expected from the conflict.
Alongside this, there has been a significant increase in global inflation,
which has adversely impacted the economies and businesses of territories the
Group operates in. However, as the Group's revenue sources and operations are
well diversified, by country and sector, the impact of that is also considered
to be mitigated.
However, given the uncertainty regarding the global economic and political
outlook, severe downside scenarios have also been modelled where revenue
targets are missed by up to 20% due to reduced revenue from clients' delays
and a slowdown in securing new business. Even in these scenarios, the Group
has strong liquidity, no external debt as at year-end and many mitigating
actions that would allow it to meet its financial liabilities as they fall
due. These mitigating actions, should they be required, are all within
management's control and could include reducing new recruitment, lowering
commission or bonus payments, and reduced capital expenditure.
The Directors therefore have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. The Group therefore continues to adopt the going concern basis in
preparing its financial statements.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
The Directors therefore have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. The Group therefore continues to adopt the going concern basis in
preparing its financial statements.
1 Segmental analysis
The Board of Directors (which is the "chief operating decision-maker")
primarily reviews information based on product lines, being split as
syndicated services such as Data Products and non-syndicated services such as
Custom Research and Data Services - with supplemental geographical
information.
Custom Research Data Products Data Services Eliminations and unallocated costs
Group
2022 £m £m £m £m £m
Revenue
Recognised over time 31.8 73.1 0.5 2.4 107.8
Recognised at a point in time 63.8 1.0 50.2 (1.7) 113.3
Total revenue 95.6 74.1 50.7 0.7 221.1
Cost of sales (19.1) (6.6) (8.0) - (33.7)
Gross profit 76.5 67.5 42.7 0.7 187.4
Administrative expenses (55.5) (40.5) (35.0) (20.1) (151.1)
Adjusted operating profit 21.0 27.0 7.7 (19.4) 36.3
Separately reported items - - - (6.3) (6.3)
Operating profit 21.0 27.0 7.7 (25.7) 30.0
Finance income -
Finance costs (4.7)
Profit before taxation 25.3
Taxation (7.8)
Profit after taxation 17.5
Custom Research Data Products Data Services Eliminations and unallocated costs
Group
(restated)¹
2021 £m £m £m £m £m
Revenue
Recognised over time 27.7 56.6 0.7 2.2 87.2
Recognised at a point in time 37.9 1.4 44.8 (2.3) 81.8
Total revenue 65.6 58.0 45.5 (0.1) 169.0
Cost of sales (14.1) (4.1) (7.2) (0.8) (26.2)
Gross profit 51.5 53.9 38.3 (0.9) 142.8
Administrative expenses (37.9) (34.5) (29.5) (15.4) (117.3)
Adjusted operating profit 13.6 19.4 8.8 (16.3) 25.5
Separately reported items - - - (6.5) (6.5)
Operating profit 13.6 19.4 8.8 (22.8) 19.0
Finance income 0.4
Finance costs (0.5)
Profit before taxation 18.9
Taxation¹ (6.4)
Profit after taxation 12.5
¹Coxmparative has been restated, as explained in the FY21 restatements
section above.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
Supplementary analysis by geography
Revenue and adjusted operating profit/(loss) by geography based on the origin
of the sale:
2022 2021
Adjusted operating profit/ (loss) Adjusted operating profit/ (loss)
Revenue Revenue
£m £m £m £m
UK 57.9 17.8 52.1 16.6
Americas¹ 99.5 32.1 74.8 23.0
Mainland Europe 45.7 3.3 30.6 3.2
Middle East 6.2 1.7 4.9 0.4
Asia Pacific 20.8 1.8 14.0 (0.1)
Intra-Group revenues/unallocated costs (9.0) (20.4) (7.4) (17.6)
Group 221.1 36.3 169.0 25.5
¹Americas refers to the US and Canada.
2 Separately reported items
2022 2021
£m £m
Acquisition-related costs 6.3 6.5
Acquisition-related costs in the year comprise £5.2m of contingent
consideration treated as staff costs in respect of the acquisitions of
Portent.io Limited, Charlton Insights Inc., YouGov Finance Limited (formerly
Lean App Limited) and Faster Horses Pty Limited, and £1.1m of transaction
costs in respect of the newly acquired entities.
Acquisition-related costs in the comparative year comprise £6.5m of
contingent consideration treated as staff costs in respect of the acquisitions
of SMG Insight Limited, InConversation Media Limited, Portent.io Limited,
Charlton Insights Inc., YouGov Finance Limited (formerly Lean App Limited) and
Faster Horses Pty Limited and £0.3m of transactions costs in respect of the
newly acquired entities,
offset by £0.3m income from insurance rebate for SMG Insight Limited
litigation costs.
3 Taxation
The taxation charge represents:
2022 2021
(restated)¹
£m £m
Current tax on profits for the year¹ 3.1 6.5
Adjustments in respect of prior years 0.1 0.6
Foreign tax 4.0 -
Total current tax charge 7.2 7.1
Deferred tax:
Origination and reversal of temporary differences¹ (3.1) (0.4)
Adjustments in respect of prior years¹ 3.5 (0.3)
Impact of changes in tax rates 0.2 -
Total deferred tax charge 0.6 (0.7)
Total income statement tax charge 7.8 6.4
¹Comparatives have been restated, as explained in the FY21 restatements
section above.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
The tax assessed for the year is higher (2021: higher) than the standard rate
of corporation tax in the UK.
The differences are explained below:
2022 2021
(restated)¹
£m £m
Profit before taxation 25.3 18.9
Tax charge calculated at Group's standard rate of 19% (2021: 19%) 4.8 3.6
Variance in overseas tax rates (1.4) 0.1
Impact of changes in tax rates 0.2 -
Impact of difference between current tax and deferred tax rate (0.2) -
Research & development tax deduction 0.1 0.1
Expenses not deductible for tax purposes¹ 0.8 2.3
Tax losses for which no deferred income tax asset was recognised 0.3 -
Adjustments in respect of prior years¹ 3.6 0.3
Other differences (0.4) -
Total income statement tax charge for the year 7.8 6.4
¹Comparative has been restated, as explained in the FY21 restatements section
above.
Excess tax on employee share option schemes of £1.0m (2021: £0.2m) was
recognised as income tax directly in equity, split between current tax of
£0.9m (2021: £1.4m) and deferred tax of £0.1m (2021: (£1.2m)).
In the Spring Budget 2021, the Government announced that the main UK
corporation tax rate will increase to 25% from 1 April 2023. At 31 July 2022,
as the proposal to increase the rate to 25% had been substantively enacted on
24 May 2021, the effects have been included in the financial statements.
On 23 September 2022, it was announced that the corporation tax rate change
from 19% to 25% with effect from 1 April 2023 was to be cancelled. This was
not substantively enacted at the balance sheet date and therefore the impact
of this change is not reflected in the measurement of deferred tax. If the
rate change had been substantively enacted prior to 31 July 2022, the impact
would have been to reduce the net deferred tax asset by £0.1m with a
corresponding debi to the income statement.
The Group's current tax provision of £3.5m relates to management's judgement
of the amount of tax payable on open tax computations where the liabilities
remain to be agreed with tax authorities in the countries that the group
operates, principally the uncertain tax items for which a provision is made.
Due to the uncertainty associated with such tax items, it is possible that at
a future date, on conclusion of open tax matters, the final outcome may vary
significantly. Whilst a range of outcomes are reasonably possible, the extent
of this range is additional liabilities of up to £3.0m to a reduction in
liabilities of up to £0.8m.
4 Dividend
On 7 December 2021, a final dividend in respect of the year ended 31 July 2021
of £6,700,000 (6.0p per share) (2020: £5,510,000 (5.0p per share)) was paid
to shareholders. A dividend in respect of the year ended 31 July 2022 of 7.0p
per share, amounting to a total dividend of £7,802,000, is to be proposed at
the Annual General Meeting in December 2022. These financial statements do not
reflect this proposed dividend payable.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
5 Earnings per share
The calculation of the basic earnings per share is based on the earnings
attributable to Ordinary Shareholders divided by the weighted average number
of shares in issue during the year. Shares held in employee share trusts are
treated as cancelled for the purposes of this calculation.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares and the post-tax effect
of dividends and/or interest, on the assumed conversion of all dilutive
options and other potentially dilutive Ordinary Shares.
The adjusted earnings per share have been calculated to reflect the underlying
profitability of the business by excluding share-based payments and related
employer's social costs, imputed interest, other separately reported items and
any related tax effects as well as the derecognition of tax losses.
Share-based payments and related social taxes have been excluded from the
adjusted earnings per
share in order to avoid a circular effect as a favourable performance would be
associated with incurring a larger share-based payments charge and vice versa.
2022 2021
(restated)¹
£m £m
Profit after taxation attributable to equity holders of the Parent Company¹ 17.1 12.5
Add: share-based payments 2.9 5.1
Add: social taxes on share-based payments - 0.5
Add: imputed interest 0.1 0.1
Add: separately reported items (Note 2) 6.3 6.5
Tax effect of the above adjustments and adjusting tax items (0.4) (1.0)
Adjusted profit after taxation attributable to equity holders of the Parent 26.0 23.7
Company
¹Comparative has been restated, as explained in the FY21 restatements section
above.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
2022 2021
(restated)¹
Number of shares
Weighted average number of shares during the year: ('m shares)
- Basic 109.9 109.7
- Dilutive effect of share options 2.3 3.3
- Diluted 112.2 113.0
The adjustments have the following effect:
Basic earnings per share (restated)¹ 15.7p 11.5p
Share-based payments 2.6p 4.7p
Social taxes on share-based payments - 0.4p
Imputed interest 0.1p 0.1p
Separately reported items 5.7p 5.9p
Tax effect of the above adjustments and adjusting tax items (0.4p) (0.9p)
Adjusted earnings per share 23.7p 21.7p
Diluted earnings per share (restated)¹ 15.4p 11.2p
Share-based payments 2.5p 4.5p
Social taxes on share-based payments - 0.4p
Imputed interest 0.1p 0.1p
Separately reported items 5.6p 5.8p
Tax effect of the above adjustments and adjusting tax items (0.4p) (0.9p)
Adjusted diluted earnings per share 23.2p 21.1p
¹Comparatives have been restated, as explained in the FY21 restatements
section above.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
6 Business combinations
Summary of acquisitions during the year ended 31 July 2022
During 2022, the Group completed a total of two acquisitions. For all of these
acquisitions the Group obtained control through acquiring 100% of voting
equity interest unless otherwise stated.
Acquisition Date of acquisition Country Primary reason for acquisition Principal activity
Rezonence Limited 30 September 2021 UK Development of an Interactive advertising
audience activation software company
platform
LINK Marketing Services AG 9 December 2021 Switzerland Growth and expansion Market and social
within Switzerland and the research company
wider European region
The amount recognised for each class of assets and liabilities acquired is as
follows:
Rezonence Limited Link Marketing Services AG Total
£m £m £m
Intangible assets 0.8 9.5 10.3
Property, plant and equipment and right of use assets - 2.7 2.7
Cash 0.6 0.4 1.0
Current assets(1,2) 0.5 5.6 6.1
Current liabilities(2) (0.8) (6.0) (6.8)
Non-current liabilities - (5.4) (5.4)
Net assets acquired 1.1 6.8 7.9
Goodwill on acquisition 4.0 14.5 18.5
Total consideration(3) 5.1 21.3 26.4
(1) The carrying value of acquired receivables at the acquisition date is the
same as their fair value. The gross contractual amounts receivable is £3.8m.
Management expects the amount of contractual cash flows to be collected and
not to have a material impact on the financial statements of the Group.
(2) Within current assets and current liabilities, there is £0.3m of accrued
income and £0.4m of deferred income acquired in aggregate, respectively.
(3) Total consideration only comprises initial cash payments made upon each
acquisition for the year ended 31 July 2022.
Fair value
Fair value adjustments included the recognition of the fair value of client
relationships, brand value and panel for LINK Marketing Services AG and
software development in relation to Rezonence Limited.
Goodwill
The goodwill amount in relation to Rezonence Limited is attributable to the
internally developed software of the acquiree. The goodwill amount in relation
to LINK Marketing Services AG is attributable to the workforce and the future
benefit to the Group of being able to engage with new audiences in Mainland
Europe.
None of those goodwill amounts are deductible for tax purposes.
Acquisition-related costs
Acquisition-related costs incurred as part of the business combinations are
disclosed in Note 2. These have also been recognised in the income statement
in the year as separately reported items.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
7 Goodwill
Americas Nordic DACH Middle East Asia Pacific SMG UK Total
£m £m £m £m £m £m £m £m
Carrying amount at 1 August 2020 20.8 6.9 11.7 1.7 1.3 17.9 1.2 61.5
Additions 0.1 - 0.4 - 1.3 - 0.1 1.9
Reallocation 14.1 - - - - (17.9) 3.8 -
Impairment - - - - - - - -
Exchange differences (1.1) (1.0) (0.6) (0.1) (0.1) - - (2.9)
Carrying amount at 31 July 2021 33.9 5.9 11.5 1.6 2.5 - 5.1 60.5
At 31 July 2021
Cost 33.9 8.0 14.0 1.6 2.5 - 5.1 65.1
Accumulated impairment - (2.1) (2.5) - - - - (4.6)
Net book amount 33.9 5.9 11.5 1.6 2.5 - 5.1 60.5
Carrying amount at 31 July 2021 33.9 5.9 11.5 1.6 2.5 - 5.1 60.5
Additions - - 14.5 - - - 4.0 18.5
Reallocation - - - - - - - -
Impairment - - - - - - - -
Exchange differences 2.6 - (1.7) 0.2 0.3 - - 1.4
Carrying amount at 31 July 2022 36.5 5.9 24.3 1.8 2.8 - 9.1 80.4
At 31 July 2022
Cost 36.5 8.0 26.8 1.8 2.8 - 9.1 85.0
Accumulated impairment - (2.1) (2.5) - - - - (4.6)
Net book amount 36.5 5.9 24.3 1.8 2.8 - 9.1 80.4
In accordance with IAS 36, the carrying values of goodwill and other
intangible assets are reviewed annually for impairment. The 2022 impairment
review was undertaken as at 30 April 2022, which was changed from 31 July in
the prior financial year. This change was made to align the impairment test
date with the quarterly forecast process. It has not resulted in avoiding an
impairment loss and management will consistently perform the impairment tests
at the new date of 30 April in future years.
The recoverable amounts of all CGUs have been determined based on value-in-use
calculations. This review assessed whether the carrying value of goodwill was
supported by the net present value of future cash flows derived from assets
using a projection period of five years for each CGU based on the forecast
numbers for the year ending 31 July 2022.
Business grouping
The acquisition of LINK Marketing Services AG in the current financial year,
as disclosed in Note 9, resulted the CEO of LINK being appointed to lead both
Switzerland and Germany. As such, the Germany CGU as previously disclosed
incorporates Switzerland and was renamed to DACH as at 31 July 2022.
In prior reporting years, SMG Insight Limited, YouGov's sports business
acquired in 2018, was treated as a separate CGU. Goodwill associated with this
CGU amounted to £17.9m. In the prior financial year SMG underwent significant
management and strategy reorganisation, and the sports business unit was fully
integrated into the rest of the Group. The goodwill related to SMG was
therefore reallocated between the CGUs for the Americas and the UK based on
profits generated. Most of the ongoing sales for this business line and the
senior management have been absorbed into these CGUs.
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
- Perpetuity growth rates based on management's estimate of future long-term
average growth rates are UK 2.25% (2021: 2.25%), Americas 2.25% (2021: 2.25%),
Nordic 2% (2021: 2%), Middle East 2% (2021: 2%), Asia Pacific 2.25% (2021:
2.25%), Germany 2% (2021: 2%) and Switzerland 2% (2021: not applicable)
(Germany and Switzerland are together referred to as "DACH").
- Pre-tax weighted average costs of capital are UK 12% (2021: 14%), Americas 9%
(2021: 12%), Nordic 10% (2021: 13%), Middle East 11% (2021: 11%), Asia Pacific
10% (2021: 12%), Germany 10% (2021: 15%) and Switzerland 14% (2021: not
applicable).
8 Other intangible assets
Consumer panel Software and software development Client contracts and lists Trademarks and product development Total
£m £m £m £m £m
At 1 August 2020
Cost 24.4 41.9 5.0 1.7 73.0
Accumulated amortisation (14.5) (30.3) (3.6) (1.4) (49.8)
Net book amount 9.9 11.6 1.4 0.3 23.2
Year ended 31 July 2021
Opening net book amount 9.9 11.6 1.4 0.3 23.2
Additions: -
Separately acquired 11.7 1.6 - 0.1 13.4
Internally developed - 7.8 - - 7.8
Through business combinations - - 1.4 - 1.4
Disposals (2.0) (0.9) (0.2) (0.1) (3.2)
Amortisation:
Amortisation - current year charge (7.1) (7.9) (0.3) - (15.3)
Amortisation - disposals 2.0 0.9 0.2 0.1 3.2
Exchange differences (0.6) (0.7) - - (1.3)
Closing net book amount 13.9 12.4 2.5 0.4 29.2
At 31 July 2021
Cost 34.1 50.4 6.2 1.7 92.4
Accumulated amortisation (20.2) (38.0) (3.7) (1.3) (63.2)
Net book amount 13.9 12.4 2.5 0.4 29.2
Year ended 31 July 2022
Opening net book amount 13.9 12.4 2.5 0.4 29.2
Additions: -
Separately acquired 9.3 1.1 - - 10.4
Internally developed - 6.9 - - 6.9
Through business combinations 0.7 1.4 7.0 1.1 10.2
Disposals (1.7) (0.2) - - (1.9)
Amortisation:
Amortisation - current year charge (9.9) (9.1) (1.2) (0.2) (20.4)
Amortisation - disposals 1.7 0.2 - - 1.9
Exchange differences 0.9 - 0.8 - 1.7
Closing net book amount 14.9 12.7 9.1 1.3 38.0
At 31 July 2022
Cost 44.8 59.6 14.4 3.0 121.8
Accumulated amortisation (29.9) (46.9) (5.3) (1.7) (83.8)
Net book amount 14.9 12.7 9.1 1.3 38.0
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
9 Right of use assets
Premises Computer equipment Office equipment and motor vehicles Total
£m £m £m £m
At 1 August 2020
Cost 16.2 1.1 0.2 17.5
Accumulated depreciation (7.7) (0.8) (0.1) (8.6)
Net book amount 8.5 0.3 0.1 8.9
Year ended 31 July 2021
Opening net book amount 8.5 0.3 0.1 8.9
Additions 7.5 - - 7.5
Disposals (1.8) - - (1.8)
Depreciation:
Depreciation - current year charge (3.4) (0.1) (0.1) (3.6)
Depreciation - disposals 1.8 - - 1.8
Exchange differences (0.7) - - (0.7)
Closing net book amount 11.9 0.2 - 12.1
At 31 July 2021
Cost 21.9 1.1 0.2 23.2
Accumulated depreciation (10.0) (0.9) (0.2) (11.1)
Net book amount 11.9 0.2 - 12.1
Year ended 31 July 2022
Opening net book amount 11.9 0.2 - 12.1
Additions 1.5 - - 1.5
Disposals (2.1) (0.1) (0.1) (2.3)
Depreciation:
Depreciation - current year charge (3.1) (0.1) - (3.2)
Depreciation - disposals 2.1 0.1 0.1 2.3
Exchange differences 0.9 - - 0.9
Closing net book amount 11.2 0.1 - 11.3
At 31 July 2022
Cost 22.9 1.0 0.1 24.0
Accumulated depreciation (11.7) (0.9) (0.1) (12.7)
Net book amount 11.2 0.1 - 11.3
The total expense to the Group relating to assets leased on a short-term basis
was £677,000 (2021: £779,000). The total expense relating to leases of
low-value assets was £46,000 (2021: £42,000).
Notes to the Consolidated Financial Statements Continued
for the year ended 31 July 2022
10 Trade and other receivables
31 July 2022 31 July 2021
£m £m
Trade receivables 26.1 20.9
Expected credit loss (0.9) (1.0)
Net trade receivables 25.2 19.9
Other receivables 7.5 4.6
Prepayments 6.0 4.7
Accrued income 15.0 11.5
53.7 40.7
11 Trade and other payables
31 July 2022 31 July 2021
£m £m
Trade payables 6.6 5.0
Accruals 21.5 19.3
Deferred income 23.7 14.7
Other payables 15.0 8.8
66.8 47.8
Included within other payables are £0.6m (2021: £0.4m) of contributions due
in respect of defined contribution pension schemes.
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