Shares in credit checking specialist Experian (EXPN) are up by a quarter since the group reported a modest improvement in first-trading trading in November. Though the group's full-year figures didn't set the world on fire, they were still ahead of consensus expectations, leading to another bump in the share price. Adjusted operating profits came in at $1.3bn (£828m) - a modest 4 per cent gain at constant exchange rates.
Organic revenue growth was flat during the first nine months of the group's fiscal year, but grew 3 per cent during the final quarter. The North American consumer business continued to struggle last year, with revenue falling 14 per cent to $717m, dragged down by the poor performance of its legacy 'free' brand products. Management is in the process of repositioning the business as a data owner as well as adding more functionality to its Experian.com product.
There was better news on this side of the Atlantic, where adjusted operating profits for its UK and Ireland business grew 11 per cent to $314m. The group also managed to convert 104 per cent of its profits into free cash flow during the year and reduced its debt pile by $592m to $3.2bn.
Broker Nomura has set a target price of 1,230p.
EXPERIAN (EXPN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,222p | MARKET VALUE: | £12.1bn | |
| TOUCH: | 1,221-1,222p | 12-MONTH HIGH: | 1,223p | LOW: 910p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 282¢* | NET DEBT: | 115% | |
| Year to 31 March | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 3.90 | 0.70 | 49.4 | 28.00 |
| 2012 | 4.50 | 0.70 | 66.8 | 32.00 |
| 2013 | 4.70 | 0.40 | 36.6 | 34.80 |
| 2014 | 4.84 | 1.05 | 76.8 | 37.50 |
| 2015 | 4.81 | 1.01 | 79.0 | 39.25 |
| % change | -1 | -4 | +3 | +5 |
Ex-div: 25 Jun Payment: 24 Jul *Includes intangible assets of $6bn, or 609¢ £1=$1.56 | ||||
