REG - YouGov PLC - Preliminary Results <Origin Href="QuoteRef">YOU.L</Origin> - Part 3
29/10/2014 11:19
- Part 3: For the preceding part double click ID:nRSM0664Ub
Year ended 31 July 2014
Opening net book amount 1,226 64 636 311 19 2,256
Additions:
Business combinations - - 16 4 - 20
Separately acquired - 447 400 134 67 1,048
Disposals - - (1) - (12) (13)
Depreciation (59) (35) (428) (92) (17) (631)
Exchange differences (119) (8) (37) (24) (3) (191)
Closing net book amount 1,048 468 586 333 54 2,489
At 31 July 2014
Cost 1,305 799 2,443 1,100 72 5,719
Accumulated depreciation (257) (331) (1,857) (767) (18) (3,230)
Net book amount 1,048 468 586 333 54 2,489
All property, plant and equipment disclosed above, with the exception of those items held under lease purchase agreement,
are free from restrictions on title. No property, plant and equipment either in 2014 or 2013 has been pledged as security
against the liabilities of the Group.
The net book value of assets held under finance leases is as follows:
Freehold Leasehold Computer Fixtures Motor Total
property property equipment and vehicles £'000
£'000 improvements £'000 fittings £'000
£'000 £'000
At 31 July 2013
Cost - - 59 35 - 94
Accumulated depreciation - - (4) (4) - (8)
Net book amount - - 55 31 - 86
At 31 July 2014
Cost - - 54 31 - 85
Accumulated depreciation - - (14) (6) - (20)
Net book amount - - 40 25 - 65
10 TRADE AND OTHER RECEIVABLES
31 July 2014 31 July 2013
£'000 £'000
Trade receivables 13,547 13,564
Amounts owed by related parties - 205
Loans to related parties - 646
Other receivables 786 620
Prepayments and accrued income 7,584 8,066
21,917 23,101
Provision for trade receivables (230) (150)
21,687 22,951
The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
Loans to related parties relate to amounts advances to fund working capital, no interest is charged.
As at 31 July 2014, trade receivables of £6,081,000 (2013: £8,750,000) and amounts owed by related parties of £nil (2013:
£205,000) 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 collectible. The ageing analysis of past due trade
receivables which are not impaired is as follows:
31 July 2014 31 July 2013
£'000 £'000
Up to three months overdue 4,206 4,959
Three to six months overdue 960 1,636
Six months to one year overdue 603 2,060
More than one year overdue 312 95
6,081 8,750
Movement on the Group provision for impairment of trade receivables is as follows:
2014 2013
£'000 £'000
Provision for receivables impairment at 1 August 150 120
Provision created in the year 201 128
Provision utilised in the year (109) (105)
Exchange differences (12) 7
Provision for receivables impairment at 31 July 230 150
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. The Group does not hold any
collateral as security.
The average length of time taken by customers to settle receivables is 64 days (2013: 68 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 (2013: greater than £250,000)) represent 26% of trade receivables (2013:17%).
At 31 July 2014, £474,000 (DKK 4.5m) (2013: £544,000 (DKK 4.6m)) 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.
11 TRADE AND OTHER PAYABLES
31 July 2014 31 July 2013
£'000 £'000
Trade payables 3,102 1,991
Accruals and deferred income 12,252 11,965
Other payables 2,176 2,279
17,530 16,235
The average length of time taken by the Group to settle payables is 44 days (2013: 31 days). The Directors consider that
the carrying amount of trade payables approximates to their fair value.
12 CONTINGENT CONSIDERATION
Clear Harrison Definitive Decision Fuel£'000 Total
Horizons Group Insights £'000
£'000 £'000 £'000
At 1 August 2012 306 1,114 939 - 2,359
Settled during the year (377) (1,126) (520) - (2,023)
Provided during the year 70 - 102 - 172
Released during the year - (16) (19) - (35)
Discount unwinding - 25 33 - 58
Foreign exchange differences 1 3 16 - 20
Balance at 31 July 2013 - - 551 - 551
Included within current liabilities - - 301 - 301
Included within non-current liabilities - - 250 - 250
Settled during the year - - (314) (18) (332)
Provided during the year - - 92 189 281
Discount unwinding - - 18 1 19
Foreign exchange differences - - (49) (3) (52)
Balance at 31 July 2014 - - 298 169 467
Included within current liabilities - - 298 - 298
Included within non-current liabilities - - - 169 169
13 NEW LONG TERM INCENTIVE PLAN ("LTIP")
The Company believes that share ownership by Executive Directors strengthens the link between their personal interests and
those of the shareholders in respect of shareholder value. It therefore established a Long Term Incentive Plan ("LTIP") in
2009, designed to reflect an individual manager's contribution to long term value creation and this has been in operation
up to and including the year ended 31 July 2014. The Remuneration Committee has recently approved a new Long Term
Incentive Plan ("New LTIP") for the Group's directors and senior managers, which takes effect from 1 August 2014.
The new LTIP is designed to reward the participants for the achievement of highly demanding EPS growth targets over the
five-year period ending 31 July 2019. These targets are significantly higher than those which are in place under the
current LTIP.
The participants will be the three Executive Directors and a small group of senior managers (up to 15) whom the Board
considers have a key role to play in the delivery of YouGov's strategic plans. The current three year LTIP is much broader
in scope and includes some 50 managers. A separate new deferred bonus plan will be established for those managers not
participating in the new LTIP. This deferred bonus plan will deliver a portion of their (enhanced) annual bonus in shares
which must be retained for a period of two years and are subject to continued employment.
Awards under the new LTIP will be made in the form of nil-cost options as in the current LTIP. The maximum total number of
shares to be awarded to each participant will be set based on their salary in the year ended 31 July 2015 and the share
price at the start of the plan. These awards will be granted in three equal tranches over FY15 to FY17. Receipt of an award
in each of those years will be dependent upon the achievement of specific and demanding personal targets set for that
individual in the previous financial year.
Vesting of awards will depend on the company achieving stretching targets relating to compound growth in adjusted earnings
per share ("EPS") over the five years ending 31 July 2019 and on improvement in its operating margins.
The 5 year compound growth EPS targets and proportion of awards vesting at each level are set out in the table below. As
this shows, annual EPS growth over the five year period has to exceed 10% in order for any LTIP shares to vest.
5 Year EPS CAGR % of Award vesting
Below 10% Nil
10% 15%
15% 30%
25% 100%
Vesting is also subject to YouGov's average adjusted operating margin being at least 12% over the five year period. This
compares with the expected average of 10 % achieved in the five years ending 31 July 2014. This is designed to focus
management's attention on improving the underlying profitability of the business, in line with its five year plan. If this
underpin condition is not achieved, the shares awarded will not vest. If it is met, then the five year EPS growth
performance will be assessed against the targets set out in the table above.
The new awards (which cover five years) will be made at varying levels to directors and senior managers in terms of
percentage of annual salary, ranging from:
Role Maximum cumulative award after 5 years as % of salary in FY15(1) Maximum No of shares awarded to be granted in three tranches from FY15 - FY17 (2)
CEO 850% 2.1 million
Executive Directors 500% 1.67 million
Senior Managers Between 150% and 250% 3.33 million
Notes
1. The award levels as a percentage of salary are indicative and may be varied by RemCo.
2. The maximum number of shares awarded is based on salaries as at 1 October 2014 and an assumed share price of £1.20 at
the start of the plan and thus may also vary.
The CEO will be entitled to an enhanced award if the share price grows by more than 200% over the five year period. This
additional award (the face value of which equates to 255% of salary) will give the CEO the opportunity to earn a total
share award of 1105% of his annual salary if both the EPS and share price growth targets are achieved in full and he
achieves the goals set for the grant of his personal award.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on YouGov
See all newsREG - YouGov PLC - Grant of awards under LTIP 2023
AnnouncementREG - YouGov PLC - Directorate Change
AnnouncementREG - YouGov PLC - Director/PDMR Dealing and Total Voting Rights
AnnouncementREG - YouGov PLC - Director/PDMR Dealing
AnnouncementREG - YouGov PLC - Holding(s) in Company
Announcement