YouGov warns of profits ‘below expectations'

UK-- Online researcher YouGov has warned that its revenue growth and profit for the six months to 31 January 2009 were “significantly below” expectations.

The firm blamed the economic climate, and in particular its impact on new business in the UK, which was “much weaker than anticipated”.

The news came in a trading update today, ahead of YouGov's interim results on 6 April. Profit in the first half of the financial year was below market expectations, and down on the same period a year earlier, the firm said. In that period it recorded £3m profit before tax, or £4.6m on an adjusted basis.

The economic turmoil has already killed off YouGov's plan to launch its own hedge fund, and was a factor in its decision to abandon plans to set up joint ventures and licensing agreements in non-core markets.

However, YouGov said it had seen good growth in markets including Germany and the US, and was in a strong financial position, with no debts.

In a written statement CEO Nadhim Zahawi said it was important that the firm continue to invest in product development. “Innovation is at the very core of our business and we believe that despite the difficult trading conditions, which we are monitoring very closely, prudent investment in the business remains in the best long-term interests of our shareholders,” he said.

• YouGov also announced this week that it is bringing together all its international operations under the YouGov brand. These include Polimetrix in the US, Psychonomics in Germany and Zapera in Scandinavia.

Author: Robert Bain

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