17th May 2018 14:43
LONDON (Alliance News) - Experian PLC's shares rose to the top of the FTSE 100 on Thursday after the credit checking agency delivered a strong set of annual results and said it is to launch a share repurchase programme of up to USD400 million.
Experian shares were up 4.5% at 1,786.00 pence, the best blue chip performer on Thursday.
The company - which makes a bulk of its revenue overseas - said growth was particularly strong across B2B markets and made significant progress in its Consumer Services division, which returned to growth in North America in the fourth quarter.
For the year to March end, annual revenue rose 8.0% to USD4.66 billion compared to USD4.33 billion last year.
In addition, benchmark pretax profit for 2018 - a closely watched measure of earnings which excludes charges such as amortisation - was higher at USD1.21 billion compared to USD1.12 billion last year. Experian's benchmark earnings before interest and tax was USD1.29 billion up from USD1.20 billion prior.
The group declared a full-year dividend of 44.75 US cents, up 8.0% from 41.50 cents last year - this was higher than consensus estimates of 43.9 US cents.
The company's benchmark earnings per share was up 8.0% at 97.8 US cents from 88.4 cents prior - slightly higher than the consensus 96.8 cents estimate.
"We delivered a strong performance in 2018 as we execute on our innovation agenda and our One Experian approach. Growth was particularly strong across B2B and we have made significant progress in Consumer Services, which returned to growth in North America in the fourth quarter," said Chief Executive Officer Brian Cassin.
The company said that its investment in innovation is providing it with growth opportunities and that it is increasing its product offering.
"The investments we have made will continue to power our performance. We begin the year with momentum in the business, and we expect another year of strong performance, with EBIT growth at or above revenue growth and further strong progress in Benchmark earnings per share," Cassin added.
The company said it saw total revenue growth in is key market of North America of 8% and organic revenue growth at 6%, reflecting a strong performance across its B2B unit of 9%.
Experian highlighted that the strong performance of the B2B business was driven by successful new product introductions and major One Experian client wins.
"Growth in the core business-to-business division, which supplies data to organisations to help them with their lending decisions, has been very robust with new products and innovations gaining good traction. Regulation and compliance are also driving demand for a lot of Experian's products, although take up can often be slow," said Charlie Huggins, manager of the Hargreaves Lansdown Select UK Growth Shares fund.
Experian has also committed to a further share buyback extension for the current year of USD400 million reflecting strong cash generation, which is around the 90% mark.
"Overall, Experian ticks a lot of boxes, with pretty unique products, good pricing power and margins, strong cash generation and debts that are well controlled. At a time when many businesses are seeing their competitive positions weakened by digital disruption, Experian continues to go from strength to strength and is investing heavily to sustain this momentum. The long term growth prospects for the business are excellent," Huggins added.
Related Shares:
Experian