REG - YouGov PLC - Preliminary Results <Origin Href="QuoteRef">YOU.L</Origin> - Part 2
09/10/2017 07:05
- Part 2: For the preceding part double click ID:nRSI9996Sa
- - - 1,111 1,111 - 1,111
Tax in relation to share based payments - - - - 721 721 - 721
Total transactions with owners recognised directly in equity 3 35 - - 759 797 (17) 780
Balance at 31 July 2016 209 31,086 9,239 13,730 19,795 74,059 30 74,089
Exchange differences on translation - - - 1,159 - 1,159 - 1,159
Net gain recognised directly in equity - - - 1,159 - 1,159 - 1,159
Profit for the year - - - - 4,671 4,671 (30) 4,641
Total comprehensive gain for the year - - - 1,159 4,671 5,830 (30) 5,800
Issue of shares 2 175 - - (2) 175 - 175
Dividends paid 4 - - - - (1,470) (1,470) - (1,470)
Share-based payments - - - - 1,488 1,488 - 1,488
Tax in relation to share based payments - - - - 391 391 - 391
Total transactions with owners recognised directly in equity 2 175 - - 407 584 - 584
Balance at 31 July 2017 211 31,261 9,239 14,889 24,873 80,473 - 80,473
YOUGOV PLC
CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 31 July 2017
Note 2017 2016
£'000 £'000
Cash flows from operating activities
Profit before taxation 7,914 5,526
Adjustments for:
Finance income (480) (2,144)
Finance costs 226 945
Share of post-tax loss of associates (103) 4
Amortisation of intangibles 7 6,508 5,567
Depreciation 8 1,174 819
Loss on disposal of property, plant and equipment and other intangible assets 7 -
Profit on the disposal of subsidiary undertakings (94) -
Share-based payments 1,488 1,111
Other non-cash items - (36)
Increase in trade and other receivables (1,531) (1,925)
Increase in trade and other payables 2,779 3,229
Increase in provisions 1,026 1,043
Cash generated from operations 18,914 14,139
Interest paid (2) (1)
Income taxes paid (2,487) (2,365)
Net cash generated from operating activities 16,425 11,773
Cash flow from investing activities
Acquisition of interest in associates - (140)
Proceeds from the sales of subsidiary undertakings net of cash disposed of 150 -
Purchase of property, plant and equipment 8 (843) (1,003)
Purchase of intangible assets 7 (6,968) (5,080)
Proceeds from sale of plant, property and equipment - 7
Interest received 8 12
Dividends received from associates - 28
Net cash used in investing activities (7,653) (6,176)
Cash flows from financing activities
Acquisition of non-controlling interests - (31)
Proceeds from the issue of share capital 175 35
Repayment of borrowings - (19)
Dividends paid to shareholders (1,470) (1,042)
Dividends paid to non-controlling interests - (14)
Net cash used in financing activities (1,295) (1,071)
Net increase in cash and cash equivalents 7,477 4,526
Cash and cash equivalents at beginning of year 15,553 10,017
Exchange gain on cash and cash equivalents 189 1,010
Cash and cash equivalents at end of year 23,219 15,553
YOUGOV PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 July 2017
Nature of operations
YouGov plc and subsidiaries' ("the Group") principal activity is the provision
of market research.
YouGov plc is the Group's ultimate parent company. It is incorporated and
domiciled in Great Britain. 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.
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 2017 on which an unqualified
report has been made by the Company's auditors.
The consolidated financial statements of YouGov plc are have been prepared
under the historical cost convention modified for fair values under
International Financial Reporting Standards as adopted by the European Union
(IFRS). These consolidated financial statements have been prepared in
accordance with IFRS, IFRS Interpretations Committee (IFRS IC) and the
Companies Act 2006 applicable to companies reporting under IFRS.
Financial statements for the year ended 31 July 2016 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. The 2017 statutory accounts will be delivered in due course.
Copies of the 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.
1 Segmental analysis
The Board of Directors (which is the "chief operating decision maker")
primarily reviews information based on product lines, Custom Research, Data
Products and Data Services, with supplemental geographical information.
2017 Custom Research Data Data Eliminations &Unallocated Costs£'000 Group£'000
£'000 Products Services
£'000 £'000
Revenue 60,220 24,070 23,296 (538) 107,048
Cost of sales (14,389) (3,284) (4,204) 538 (21,339)
Gross profit 45,831 20,786 19,092 - 85,709
Operating expenses (36,928) (13,756) (13,359) (7,138) (71,181)
Adjusted operating profit 8,903 7,030 5,733 (7,138) 14,528
Amortisation of intangible assets (6,483)
Other separately reported items (488)
Operating profit 7,557
Finance income 480
Finance costs (226)
Share of post-tax loss in joint ventures and associates 103
Profit before taxation 7,914
Taxation (3,273)
Profit after taxation 4,641
Other segment information
Depreciation 730 138 173 132 1,174
2016 Custom Research Data Data Eliminations &Unallocated Costs £'000 Group £'000
£'000 Products Services
£'000 £'000
Revenue 54,318 16,629 17,905 (650) 88,202
Cost of sales (13,753) (3,007) (3,394) 678 (19,476)
Gross profit 40,565 13,622 14,511 28 68,726
Operating expenses (33,704) (9,110) (9,320) (5,675) (57,809)
Adjusted operating profit 6,861 4,512 5,191 (5,647) 10,917
Amortisation of intangible assets (5,478)
Other separately reported items (1,108)
Operating profit 4,331
Finance income 2,144
Finance costs (945)
Share of post-tax loss in joint ventures and associates (4)
Profit before taxation 5,526
Taxation (2,111)
Profit after taxation 3,415
Other segment information
Depreciation 506 108 112 93 819
1 Segmental analysis (Continued)
Supplementary information by geography
Revenue and adjusted operating profit by geography based on the origin of the
sale
2017 2016
Revenue £'000 Adjusted operatingprofit/(loss) £'000 £'000 Revenue £'000 Adjusted operating profit/(loss) £'000
UK 27,139 8,575 24,927 7,150
USA 40,710 9,276 30,960 6,014
Germany 9,597 946 9,098 698
Nordic 8,895 962 7,577 942
Middle East 16,322 2,449 13,948 2,430
France 2,735 406 1,689 134
Asia Pacific 5,512 (908) 2,832 (586)
Intra-group revenues/unallocated costs (3,862) (7,178) (2,829) (5,865)
Group 107,048 14,528 88,202 10,917
^Operating profit/(loss) before amortisation of intangible assets and
exceptional items.
Revenue by geography based on the destination of the customer
2017 UK £'000 Middle East £'000 Germany £'000 Nordic £'000 USA £'000 France £'000 Asia Pacific £'000 Intra-group revenues £'000 Group £'000
External sales 26,766 13,523 9,406 8,584 42,595 2,136 4,038 - 107,048
Inter-segment sales 1,752 281 772 528 2,764 187 390 (6,674) -
Total revenue 28,518 13,804 10,178 9,112 45,359 2,323 4,428 (6,674) 107,048
2016
External sales 24,654 10,819 8,722 7,451 32,563 1,789 2,204 - 88,202
Inter-segment sales 1,925 209 512 356 1,922 141 193 (5,258) -
Total revenue 26,579 11,028 9,234 7,807 34,485 1,930 2,397 (5,258) 88,202
Inter-segment sales are priced on an arm's-length basis that would be
available to unrelated third parties.
2 OTHER SEPARATELY REPORTED ITEMS
2017 £'000 2016 £'000
Restructuring costs 582 1,086
Profit on the disposal of subsidiary undertakings (94) -
Legal costs - 157
Acquisition-related costs - (130)
Change in accounting estimation - contingent consideration - (5)
488 1,108
Restructuring costs in the year included £265,000 in relation to the reduction
of non-core custom operations in the Middle East and £317,000 arising from the
establishment of centralised global operations and finance support functions.
The profit on the disposal of subsidiary undertakings was in respect of the
disposal of Service Rating GmbH.
Restructuring costs in the prior year included £894,000 in relation to the
restructuring of the Northern European units. Restructuring costs of £192,000
were also incurred in reorganising sales and marketing operations in the UK,
reorganising the IT Development structure and reorganising the management
structure in the US.
Legal costs in the prior year were incurred in connection with establishing
operations in Thailand.
Acquisition related income in the prior year comprise the acquisition of
Decision Fuel comprising a £53,000 reduction in contingent deemed staff costs
and a £77,000 reduction in provisions in respect of transaction costs.
The change in estimated contingent consideration in the prior year is in
respect of the Decision Fuel acquisition.
3 TAXATION
The taxation charge represents:
2017 £'000 2016 £'000
Current tax on profits for the year 2,987 2,083
Adjustments in respect of prior years 305 173
Total current tax charge 3,292 2,256
Deferred tax:
Origination and reversal of temporary differences 428 (309)
Adjustments in respect of prior years (409) 85
Impact of changes in tax rates (38) 79
Total deferred tax credit (19) (145)
Total income statement tax charge/(credit) 3,273 2,111
The tax assessed for the year is higher (2016: higher) than the standard rate
of corporation tax in the UK.
The differences are explained below:
2017 £'000 2016 £'000
Profit before taxation 7,914 5,526
Tax charge calculated at Group's standard rate of 20% (2015: 20.67%) 1,557 1,105
Variance in overseas tax rates 1,305 616
Impact of changes in tax rates (38) 79
Gains not subject to tax (25) (7)
Expenses not deductible for tax purposes 45 7
Tax losses for which no deferred income tax asset was recognised 553 52
Adjustments in respect of prior years (104) 258
Associates results reported net of tax (20) 1
Total income statement tax charge for the year 3,273 2,111
On 8 July 2015, the UK corporation tax rate was reduced from 20% to 19% from 1
April 2017 and to 18% from 1 April 2020. On 15 September 2016 further changes
to the UK corporation tax rates were made reducing the main rate to 17% from 1
April 2020. These changes have been substantively enacted at the balance sheet
date and, therefore, are included in these financial statements. Deferred
taxes at the balance sheet date have been measured using the enacted tax rates
reflected in these financial statements.
4 DIVIDEND
On 12 December 2016, a final dividend in respect of the year ended 31 July
2016 of £1,470,000 (1.4p per share) (2015: £1,042,000 (1.0p per share)) was
paid to Shareholders. A dividend in respect of the year ended 31 July 2017 of
2.0p per share, amounting to a total dividend of £2,106,000 is to be proposed
at the Annual General Meeting on 6 December 2017. These financial statements
do not reflect this proposed dividend payable.
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 dilutive potential Ordinary Shares.
The adjusted earnings per share has been calculated to reflect the underlying
profitability of the business by excluding the amortisation of intangible
assets, share-based payments, imputed interest, impairment charges, other
separately reported items and any related tax effects as well as the
derecognition of tax losses.
2017 £'000 2016 £'000
Profit after taxation attributable to equity holders of the parent company 4,671 3,401
Add: amortisation of intangible assets included in operating expenses 6,483 5,478
Add: share-based payments 1,488 1,111
Add: imputed interest 20 27
Add: : other separately reported items 488 1,108
Tax effect of the above adjustments and adjusting tax items (1,639) (1,988)
Adjusted profit after taxation attributable to equity holders of the parent company 11,511 9,137
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below.
2017 2016
Number of shares
Weighted average number of shares during the year: ('000 shares)
- Basic 105,453 103,944
- Dilutive effect of share options 4,670 3,361
- Diluted 110,123 107,305
The adjustments have the following effect:
Basic earnings per share 4.4p 3.3p
Amortisation of intangible assets 6.2p 5.3p
Share-based payments 1.4p 1.1p
Imputed interest 0.0p 0.0p
Other separately reported items 0.5p 1.0p
Tax effect of the above adjustments and adjusting tax items (1.6p) (1.9p)
Adjusted earnings per share 10.9p 8.8p
Diluted earnings per share 4.2p 3.2p
Amortisation of intangible assets 5.9p 5.1p
Share-based payments 1.4p 1.0p
Imputed interest 0.0p 0.0p
Other separately reported items 0.5p 1.0p
Tax effect of the above adjustments and adjusting tax items (1.5p) (1.8p)
Adjusted diluted earnings per share 10.5p 8.5p
6 GOODWILL
Middle East £'000 USA £'000 Nordic £'000 Germany £'000 CoEditor £'000 Asia Pacific £'000 Total £'000
Carrying amount at 1 August 2015 1,416 16,945 7,012 9,159 569 692 35,793
Exchange differences 251 2,996 1,417 1,821 - 123 6,608
Carrying amount at 31 July 2016 and 1 August 2016 1,667 19,941 8,429 10,980 569 815 42,401
Exchange differences 15 186 502 640 - 2 1,345
Carrying amount at 31 July 2017 1,682 20,127 8,931 11,620 569 817 43,746
At 31 July 2017
Cost 1,682 20,127 8,931 12,343 569 817 44,469
Accumulated impairment - - - (723) - - (723)
Net book amount 1,682 20,127 8,931 11,620 569 817 43,746
The impairment in the year arose on the closure of BeField GmbH.
In accordance with the Group's accounting policy, the carrying values of
goodwill and other intangible assets are reviewed annually for impairment. The
cash-generating units ("CGUs") are consistent with those segments shown in
Note 1. The 2017 impairment review was undertaken as at 31 July 2017. 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 approved budget
numbers.
The sources of the assumptions used in making the assessment are as follows:
· Growth rates are internal forecasts based on both internal and external
market information.
· Margins reflect past experience, adjusted for expected changes.
· Terminal growth rates based on management's estimate of future
long-term average growth rates.
· Discount rates based on Group WACC, adjusted where appropriate.
Annual EBITDA growth rates of 2.25% have been assumed in perpetuity beyond
year five. The pre-tax weighted average costs of capital used to discount the
future cash flows to their present values are Middle East 10% (2016: 10%), USA
17% (2016: 17%), Nordic 13% (2016: 13%), Germany 15% (2016: 15%) and Asia
Pacific 12% (2016: 12%).
Management has considered reasonable possible changes in key assumptions and
performed sensitivity analyses under these scenarios. This analysis shows that
sufficient headroom exists and would not give rise to any further impairment.
7 OTHER INTANGIBLE ASSETS
Consumer panel £'000 Software and software development £'000 Customer contracts and lists £'000 Patents and trademarks £'000 Product development costs£'000 Total £'000
At 1 August 2015
Cost 12,182 16,329 4,576 2,869 988 36,944
Accumulated amortisation (9,985) (10,740) (2,727) (2,403) (737) (26,592)
Net book amount 2,197 5,589 1,849 466 251 10,352
Year ended 31 July 2016
Opening net book amount 2,197 5,589 1,849 466 251 10,352
Additions:
Separately acquired 1,979 391 - 49 106 2,525
Internally developed - 2,555 - - - 2,555
Amortisation charge:
Business combinations - (128) (465) (169) - (762)
Separately acquired (1,574) (572) - (3) (166) (2,315)
Internally developed - (2,490) - - - (2,490)
Reclassifications - 80 - - (80) -
Exchange differences 312 211 283 48 20 874
Closing net book amount 2,914 5,636 1,667 391 131 10,739
At 31 July 2016 and 1 August 2016
Cost 16,081 19,901 5,418 3,439 962 45,801
Accumulated amortisation (13,167) (14,265) (3,751) (3,048) (831) (35,062)
Net book amount 2,914 5,636 1,667 391 131 10,739
Year ended 31 July 2017
Opening net book amount 2,914 5,636 1,667 391 131 10,739
Additions:
Separately acquired 3,471 50 - 26 - 3,547
Internally developed - 3,385 - - 36 3,421
Amortisation charge:
Business combinations - (226) (562) (173) - (961)
Separately acquired (2,219) (534) - (8) (60) (2,821)
Internally developed - (2,726) - - - (2,726)
Disposals - - - - (71) (71)
Exchange differences 34 15 31 4 2 86
Closing net book amount 4,200 5,600 1,136 240 38 11,214
At 31 July 2017
Cost 19,768 23,374 5,548 3,581 900 53,171
Accumulated amortisation (15,568) (17,774) (4,412) (3,341) (862) (41,957)
Net book amount 4,200 5,600 1,136 240 38 11,214
8 PROPERTY, PLANT AND EQUIPMENT
Freehold property £'000 Leasehold property improvements £'000 Computer equipment £'000 Fixtures and fittings £'000 Motor vehicles£'000 Total £'000
At 31 July 2015
Cost 1,416 1,011 2,376 1,302 103 6,208
Accumulated depreciation (329) (333) (1,705) (826) (42) (3,235)
Net book amount 1,087 678 671 476 61 2,973
Year ended 31 July 2016
Opening net book amount 1,087 678 671 476 61 2,973
Additions:
Separately acquired - 178 576 249 - 1,003
Disposals - (7) - - - (7)
Depreciation (75) (176) (398) (144) (26) (819)
Exchange differences 184 73 81 72 8 418
Closing net book amount 1,196 746 930 653 43 3,568
At 31 July 2016
Cost 1,667 1,248 3,082 1,692 121 7,810
Accumulated depreciation (471) (502) (2,152) (1,039) (78) (4,242)
Net book amount 1,196 746 930 653 43 3,568
Year ended 31 July 2017
Opening net book amount 1,196 746 930 653 43 3,568
Additions:
Separately acquired - 61 659 86 37 843
Disposals - (1) - (6) - (7)
Depreciation (87) (205) (609) (243) (30) (1,174)
Exchange differences 14 8 16 10 - 48
Closing net book amount 1,123 609 996 500 50 3,278
At 31 July 2017
Cost 1,682 1,312 3,787 1,788 158 8,727
Accumulated depreciation (559) (703) (2,791) (1,288) (108) (5,449)
Net book amount 1,123 609 996 500 50 3,278
All property, plant and equipment disclosed above in both the year ended 31
July 2017 and 3 July 2016, with the exception of those items held under lease
purchase agreements, are free from restrictions on title.
9 TRADE AND OTHER RECEIVABLES
31 July 2017 £'000 31 July 2016 £'000
Trade receivables 18,441 16,542
Other receivables 2,367 2,004
Prepayments 1,886 1,646
Accrued income 8,549 8,925
31,243 29,117
Provision for trade receivables (544) (474)
30,699 28,643
The Directors consider that the carrying amount of trade and other receivables
approximate to their fair value.
As at 31 July 2017, trade receivables of £10,660,000 (2016: £10,101,000) were
overdue but not impaired. These relate to a number of customers for which
there is no recent history of default or any other indication that the
receivable should not be fully collectable. The ageing analysis of past due
trade receivables which are not impaired is as follows:
31 July 2017 £'000 31 July 2016 £'000
Up to three months overdue 6,391 4,752
Three to six months overdue 3,011 4,467
Six months to one year overdue 479 631
More than one year overdue 779 251
10,660 10,101
Movement on the Group provision for impairment of trade receivables is as
follows:
2017 £'000 2016 £'000
Provision for receivables impairment at 1 August 474 235
Provision created in the year 206 368
Provision utilised in the year (140) (159)
Exchange differences 4 29
Provision for receivables impairment at 31 July 544 474
The creation and release of the provision for impaired receivables has been
included in the Consolidated Income Statement. The other classes within trade
and other receivables do not contain impaired assets. The maximum exposure to
credit risk at the reporting date is the carrying value of each class of
receivable mentioned above.
9 TRADE AND OTHER RECEIVABLES (CONTINUED)
The average length of time taken by customers to settle receivables is 58 days
(2016: 59 days). Concentrations of credit risk do exist with certain clients
with which we have trading relationships but none has a history of default and
all command a certain stature within the marketplace which minimises any
potential risk of default. Material balances (defined as greater than £250,000
(2016: greater than £250,000)) represent 43% of trade receivables (2016:
39%).
At 31 July 2017, £261,000 (2016: £nil) of the trade and other receivables of
YouGov Nordic and Baltic A/S were used as security against a loan and
revolving overdraft facility held by YouGov Nordic and Baltic A/S. The Group
does not hold any other collateral as security.
10 TRADE AND OTHER PAYABLES
31 July 2017 £'000 31 July 2016 £'000
Trade payables 1,745 1,557
Accruals 12,887 11,295
Deferred Income 10,697 9,399
Other payables 4,060 3,588
29,389 25,839
Included within other payables are £71,000 (2016: £56,000) of contributions
due in respect of defined contribution pension schemes.
This information is provided by RNS
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