Experian expects another year of good growth

18th May 2011 07:51

Credit checking outfit Experian met or exceeded all of its financial objectives in the fiscal year just finished, but warned that year on year comparatives will get harder to beat in the first half of the current year.Revenue from continuing activities in the year to 31 March was up 7.7%, or 10% at constant exchange rates (CER), to $4.2bn from $3.9bn the year before. The organic growth rate was 8%.Organic revenue growth was 7% in North America, 19% in Latin America, 2% in the UK and Ireland and 7% in Europe, Middle East, Africa/Asia Pacific.Organic revenue growth of 7% was achieved by the Credit Services division, while at Decision Analytics, Marketing Services and Interactive the growth rates were 4%, 11% and 9% respectively.Earnings before interest and tax (EBIT) rose 12% (CER: +11%) to $1,044m, the tenth successive year of earnings growth for the company. The EBIT margin improved by three-tenths of a percentage point to 24.8%.Profit before tax jumped to $679m from $600m, while what the company calls "benchmark profit before tax" improved 14% to $973m.Basic earnings per share (EPS) declined to 57.9 cents from 59 cents the year before, but benchmark EPS rose 10% to 70 cents.Net debt at the end of the reporting period stood at $1,501m, down $126m on the year. At 31 March 2011, the adjusted net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) gearing ratio was 1.8 times. A second interim dividend of 19 cents has been declared, taking the full year dividend up to 28 cents, a 22% improvement in dollar terms."For the year ahead, we expect another year of good growth, and are aiming for organic revenue growth in the mid-high single digit range, modest margin improvement and strong cash flow conversion. Due to strong comparatives in the first half, we expect some variability within this range quarter-to-quarter," said Experian's chief executive officer, Don Robert. ---jh