As foreshadowed, currency translation effects ate into Experian 's (EXPN) reported full-year revenues, but the information services group actually delivered top-line growth of 5 per cent at constant currencies. This underlying result was driven primarily by the growth of the credit services segment, which was particularly pronounced in Experian's North American markets. Adjusted margins were broadly stable on 2015, and a combination of disposal receipts and lower amortisation charges enabled the group to book improved pre-tax profits.
Overall, this was a solid set of figures, particularly given prevailing trading conditions in some of Experian's key markets. Brazil provides a case in point; Latin America's biggest economy continues to struggle along, but Experian pushed up organic revenues in the final quarter through vertical expansion and counter-cyclical effects.
Experian continued driving capital efficiencies, enabling the group to achieve a cash flow conversion rate of 105 per cent, while net debt decreased by $194m, with the total representing 1.9 times cash profits.
Goldman Sachs expects adjusted net income of $868m for the year to March 2017, leading to EPS of 92¢, against $854m and 89¢ in FY2016.
| EXPERIAN (EXPN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,277p | MARKET VALUE: | £12.26bn | |
| TOUCH: | 1,276p-1,278p | 12-MONTHHIGH: | 1,294p | LOW: 1,017p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 253p* | NET DEBT: | 124% | |
| Year to 31 Mar | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 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 | 76.9 | 39.25 |
| 2016 | 4.55 | 1.03 | 79.9 | 40.00 |
| % change | -5 | +2 | +4 | +2 |
Ex-div: 23 Jun Payment: 22 Jul £1=$1.44 *Includes intangible assets of $5.63bn, or 586¢ a share. | ||||
