YouGov, the market research group, is reviewing plans to start a hedge fund based on its research techniques as the state of the economy continues to look uncertain.

Nadhim Zahawi, the chief executive of YouGov, told The Times that the hedge fund, which had been due to be launched next month, was under review. The fund, which it was planning with Numis Corporation and Four Capital, could be delayed or restructured, although he declined to comment further.

The news came as the group said that full-year profits in the year to July 31 would fall short of expectations after taking a one-off £1.2 million hit from a failed takeover. The company, best known for political polling, also blamed increased spending on investment for the forecast decline in profits, which are now expected to be £8.5 million – £1.8 million lower than previous estimates.

However, YouGov insisted that gross margins would be ahead of market forecasts; revenues, at £40 million, would meet targets. The shares fell 2¾p, or 2.5 per cent, to 107p.

YouGov declined to elaborate on the failed acquisition, saying only that talks over a significant deal had been terminated. It added that it had invested more rapidly than expected to develop its people and infrastructure assets. Investment is estimated to have cost about £2 million for the year, and included opening offices in Berlin and Palo Alto, California, as well as recruiting panel members and the infrastructure to manage them in Austria, Germany and Russia, and specialist sector teams in the UK and the US.

YouGov made three acquisitions in the year to July, in Scandinavia, Germany and the US. It said that the deals had helped to boost revenues, although the group had seen organic growth of more than 35 per cent in its UK and Middle East businesses.

YouGov has introduced online research initiatives through its takeovers, including BrandIndex, which has a 200,000-strong online panel of interview respondents.

The investment strategy of the hedge fund came on the back of YouGov’s accuracy record, consistently predicting the result and margin of London’s mayoral election. YouGov said that its research for financial institutions led to the decision to start the hedge fund, YouGovAlpha.

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