Shares in credit-checking specialist Experian (EXPN) have had a lacklustre run of late as organic growth has tracked at the lower end of management's targeted range. These results did little to allay investors' concerns, with chief executive Don Robert admitting that the group faced a "fair number of challenges".
At the half-year point, the company said organic growth was 6 per cent, which was viewed as a little disappointing in light of the company's guidance for mid-to-high single-digit growth. These full-year results showed organic growth slowing to 5 per cent, and forward guidance was also cautious. Experian said subdued trading in Brazil due to the imminent World Cup, together with a shift in marketing strategy in North American consumer services, would weigh on the organic growth performance during the first half of the current financial year.
Reported numbers last year were distorted by the presence of $561m (£331m) of exceptional finance costs in the prior period. On Experian's 'benchmark' basis, pre-tax profit was up 4 per cent to $1.2bn, with earnings per share up 8 per cent to 91.7¢. JPMorgan has cut its benchmark EPS forecast for the current year by 6 per cent to 97.8¢.
| EXPERIAN (EXPN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,071p | MARKET VALUE: | £10.6bn | |
| TOUCH: | 1,070-1,072p | 12-MONTH HIGH: | 1,290p | LOW: 1,020p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 310¢* | NET DEBT: | 123% | |
| Year to 31 Mar | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 3.9 | 0.6 | 59.0 | 23 |
| 2011 | 3.9 | 0.7 | 49.4 | 28 |
| 2012 | 4.5 | 0.7 | 66.8 | 32 |
| 2013 | 4.7 | 0.4 | 36.6 | 34.8 |
| 2014 | 4.8 | 1.0 | 76.8 | 37.5 |
| % change | +2 | +142 | +110 | +8 |
Ex-div: 25 Jun Payment: 25 Jul *Includes intangible assets of $6.7bn, or a 672¢ share £1=$1.70 | ||||
