- Steve Hatch will step down with immediate effect
YouGov chief executive Steve Hatch will step down with immediate effect following pressure form an activist investor.
Gatemore Capital Management disclosed a position in YouGov in November to demand the firm be put up for sale, as the fund manager blamed a series of management ‘missteps’ for a severe share price decline over recent years.
Last month the fund manager, which also initiated campaigns against London-listed Watches of Switzerland and Elementis in 2024, called for Hatch to step down and an interim chief executive to be appointed in his place.
Gatemore managing partner Liad Meidar claimed in an open letter that there was ‘widespread disappointment’ among shareholders over Hatch’s tenure.
He said Hatch ‘lacks the capability to conduct a comprehensive strategic review and execute a successful sale, which… would maximize value for the shareholders’.
YouGov said on Tuesday that its board had ‘mutually agreed’ with Hatch that he should step down, and chair Stephen Shakespeare would take his place on an interim basis.
The news failed to lift YouGov shares, which were down 1.1 per cent to 358p by midmorning.
YouGov shares have fallen around 70 per cent over the last 12 months and are almost 80 per cent below an all-time high of 1,600p achieved at the end of 2021.
Investors in YouGov endured a torrid 2024 despite a busy global election schedule.
‘Challenges’ in YouGov’s European, Middle East and African markets led to a profit warning in June, while a full-year dividend hike last month was not enough to revive shares.
Gatemore wants YouGov to find a buyer, sell up and exit London’s AIM market at a ‘healthy premium’.
The fund manager says revitalising YouGov shares and achieving fair value while listed on London’s junior market ‘would be extremely challenging and unduly prolonged’.
YouGov, which was co-founded by former Chancellor Nadim Zahawi, also said on Tuesday it had seen ‘stabilisation in our core business’ during the first half of its financial year with performance in line with expectations.
The group said: ‘Looking ahead, we are encouraged by the stabilisation we have seen and therefore the group is expecting to deliver continued modest year-on-year revenue growth on a reported basis over the course of the second half of FY25.
‘While our data products division, has returned to growth, we are mindful that market conditions remain challenging with pressure on client budgets and protracted sales cycles.
‘The group is continuing to invest in key growth areas such as its Data Products and AI-enabled capabilities to drive growth in the medium term.’
Analysts at Peel Hunt said: ‘Despite internal changes, growth remains modest due to client spending uncertainty.
‘The CEO change today demonstrates YouGov’s commitment to making more significant improvements to the business. What we need to see for a step-up in share price now is an acceleration of growth.’
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