YouGov predicts upturn as General Election approaches

YouGov said the decline in pre-tax profits to 1.4m in the six months to January 31 came as good performances in the UK, Germany and US were offset by declines in the Middle East and under-performance in Scandinavia.

The firm, which is set to provide daily polling as the General Election nears, said it now expected to benefit from new technology and forecast a stronger second half.

YouGov said its first half results were in line with expectations in a challenging market.

Chief executive Stephan Shakespeare said: "The group has a good new business pipeline and we are starting to see contributions from new revenue generating initiatives.

"This, combined with our strong balance sheet and good cash generation, gives us confidence for the future and in our ability to deliver improved profits for the full financial year."

In its UK business, YouGov said innovations which will affect its second half performance include a daily political poll in the run up to the general election, which will be published in the Sun plus one in the Sunday Times.

Another key development is the launch of TellYouGov.com, which provides "real-time readings on the public's attitudes and concerns" and which is its first product to "generate statistically meaningful data from micro-blogging".

The firm also launched a business intelligence service, SixthSense, in March, providing in-depth reports on a range of sectors using YouGov research as well as other specialist data sources and expert views.

YouGov said it had increased operating profits in the UK by 51 per cent to 1.2m in the first half and boosted margins as it reaped the rewards of an earlier restructuring.

It said its teams had won "significant" new projects with a range of clients including Pfizer, Innocent Foods and Unilever.

In its other global businesses, YouGov said margin improvements in Germany are expected to be maintained, while in the US it plans to grow its commercial research division.

Locally-generated business in the Middle East is predicted to grow in the second half, after overall revenues for the first six months were hit by expected declines in a long-term contract.

The firm said it was well-placed to exploit the developing commercial research market in Iraq and has already won new business in the country.