Experian (EXPN) saw organic revenue rise by 8 per cent at constant currencies in the year to 31 March, with double-digit increases in North and Latin America. The credit data provider's adjusted operating profit increased by 9 per cent to $1.4bn (£1.1bn), and despite erosion in the UK and Ireland, the overall margin decline was limited to 0.1 percentage points to 26.8 per cent.
The business-to-business division continued to gain momentum from new modules added to the Ascend platform, with the cumulative total contract value for Ascend reaching $313m. Over in consumer services, the adjusted operating jumped by almost a fifth to $257m, as Experian Boost helped drive the US free membership base from 19m to 29.5m.
The Covid-19 pandemic meant organic revenue growth dropped 5 per cent in April, and Experian has warned of a 5-10 per cent contraction in the first quarter to 30 June if global government lockdowns continue. This could widen to 15 per cent if exchange rate volatility persists, in particular a weaker Brazilian Real.
Higher capital expenditure and a more than doubling of money owed by customers also meant underlying free cash flow fell 15 per cent to $774m. Meanwhile, on the back of $700m of acquisitions, net debt rose by almost a fifth to $3.9bn (excluding lease liabilities). At 2.2 times adjusted cash profits, this is at the lower end of a target multiple range of between 2.2 and 2.5. In order to preserve cash, the $400m share buyback programme has been suspended, although confidence in its outlook beyond this crisis means the second half-year dividend has been held steady.
EXPERIAN (EXPN) | ||||
ORD PRICE: | 2,748p | MARKET VALUE: | £24.8bn | |
TOUCH: | 2,747-2,749p | 12-MONTH HIGH: | 2,926p | LOW: 1,824p |
DIVIDEND YIELD: | 1.4% | PE RATIO: | 45 | |
NET ASSET VALUE: | 252¢* | NET DEBT: | £4.1bn** |
Year to 31 Mar | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
2016 | 4.24 | 0.97 | 78.6 | 40.0 |
2017 | 4.33 | 1.07 | 92.1 | 41.5 |
2018 | 4.58 | 0.95 | 88.8 | 44.8 |
2019 | 4.86 | 0.96 | 76.9 | 46.5 |
2020 | 5.18 | 0.94 | 75.0 | 47.0 |
% change | +7 | -2 | -2 | +1 |
Ex-div: | 25 Jun | |||
Payment: | 24 Jul | |||
£1=$1.23, *Includes $6.1bn in intangible assets or 679¢ a share, **Includes £233m in lease liabilities |