YouGov swings to pre-tax loss of £683,000

by Staff, Brand Republic 12-Oct-09, 16:00

LONDON - YouGov has announced its first profit decline in eight years, with pre-tax profits dropping from £4m in 2008 to a loss of £683,000 in 2009.

While profits fell in the year to July 31, revenues rose 10% to £44.3m.

In the UK YouGov’s operating profit fell by 12% to £11.1m as a result of a fall in demand for investment data from financial houses.

It has cut around 10% of its workforce as part of a £2.5m cost-cutting drive. The company’s chairman Roger Parry said YouGov had taken on board too many costs compared to income.

Commenting on the results chief executive Nadhim Zahawi said: "During a year that has been very challenging for the research industry as a whole, we have re-focused the business on our core revenue generating areas and cut costs. Importantly, we believe that YouGov has continued to grow its market share compared to the incumbents.

"As the online research pioneer, we continue to innovate and invest to ensure that we are best placed to capitalise on industry trends, in particular, the transition towards real time research. Our development is supported by a strong balance sheet and good cash generation. We are confident in YouGov's prospects for the future."