Experian to lift divi, launch $300m buyback

19th May 2010 07:41

Credit checking firm Experian will increase its interim dividend and launch a $300m share buyback programme as it sees signs of 'gradual recovery' in some of its key markets.For the year ended 31 March 2010 Experian reported pre-tax profit from continuing operations of $661m compared to $578m in 2009. Benchmark profit before tax rose 8% to $910m. Total group revenue was flat at $3.9bn. Net debt was reduced by $483m to $1,627m at 31 March 2010."Looking ahead, we see signs of gradual recovery in some of our key markets and we expect a modest contribution from our strategic growth initiatives over the course of the year," said chairman John Peace.For the first half, Experian expects expect organic revenue growth to be 'slightly stronger' than the full year 2010 exit rate. For the year as a whole, the group said it is targeting mid single-digit EBIT growth (from continuing activities at constant currency) and strong cash generation.Revenue growth in UK and Ireland fell 1% to $779m while Latin America saw revenue increase 16% to $559m. "We see significant scope to take our existing credit and marketing products into fast-growing markets, for example Brazil, India, China, South Africa and Eastern Europe," the group said in a company statement.For the year ended 31 March 2010, the group announced a second interim dividend of 16 cents per share, bringing the full-year dividend to 23 cents per share.Experian said it intends to increase its dividend payout ratio over the next twelve months.