Research Now reveals US panel plans as profits treble
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Online fieldwork company Research Now is to launch a US panel. The London-based firm revealed the plans today as it announced that profits more than trebled in 2006.
Managing director Andrew Cooper told Research that the company plans to launch its US panel in the spring, and is preparing to recruit respondents. The firm aims to have 500,000 active members on the panel, which will serve US clients as well as forming part of the firm's “one-stop shop” multi-country panel service.
Research Now's profit before tax more than trebled to £1.6m in the year ending 31 October 2006, from £0.5m in 2005. Revenue nearly trebled to £9.6m from £3.6m in the previous year.
The firm's client base has also trebled to 300, largely as a result of international expansion – however 61% of its revenue came from repeat business.
The company's broker, Canaccord Adams forecasts that revenue will continue to grow to £17.4m in 2007.
Research Now said it could now claim to be the “leading European online fieldwork provider”, after its Europe-only revenue for the three months ending 30 September exceeded that of its main rival Ciao.
The firm, which floated on the Alternative Investment Market in August 2005, has undergone rapid expansion in the past year, setting up 12 panels to bring its total to 20, comprising more than a million active members.
US sales of Research Now's European panel services provided £1m of the firm's 2006 revenue, and accounted for 15% of revenue in the last quarter. Chief executive Chris Havemann said the new panel launch is driven by demand from US clients for the firm's “high service” proposition. “We don't lead on price, we lead on service,” he said. “Our clients are telling us there's room in the market for a quality player.”
Cooper added: “We compete with the Americans in Europe very strongly and we have built our team in the US very successfully and profitably. We know our proposition works there.”
The company plans to launch further panels in Asia later this year, including one in China. It is also looking into acquisition opportunities in and outside Europe.
Author: Robert Bain
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