20th May 2020 09:13
(Alliance News) - Experian PLC on Wednesday said annual profit dipped slightly due to a USD49 million increase in finance costs, but it maintained its final dividend despite the virus pandemic.
Shares in Experian were up 6.9% at 2,696.27 pence in London in morning trading.
The FTSE 100-listed consumer credit checker posted a USD942 million pretax profit for its financial year ended March 31, down 1.6% from USD957 million the previous year.
While revenue increased 6.6% to USD5.18 billion from USD4.86 billion, net finance costs rose 24% to USD257 million from USD208 million due to both higher interest expenses and a larger charge in respect of fair value re-measurements.
Total operating expenses were 7.8% higher at USD3.99 billion compared to USD3.70 billion the year before.
A second interim dividend of 32.5 US cents per share was declared, unchanged from financial 2019. This brings Experian's annual dividend to 47.0 cents per share, up 1.1% from 46.50 cents.
Experian has highlighted the three main factors which will influence its financial 2021 performance. These are: "the extent of the impact of stay-at-home policies on economic activity, the positive effects of government stimulus measures on consumer spending," and the company's "efforts to serve the shifting needs and demands of clients and consumers".
No guidance for financial 2021 was provided. In April, organic revenue fell 5% and if current trends persist organic revenue is set for a 5% to 10% decline in the first quarter, Experian said.
Moreover, based on recent average exchange rates, revenue and benchmark earnings before interest and tax would take around a 5% hit from currency volatility. Experian's benchmark figures exclude acquisition and disposal expenses, charges for amortisation and impairment of acquisition intangibles, and other items.
Chief Executive Brian Cassin said: "The vast majority of our employees are working from home, and our operations continue to function smoothly. Our business is strongly cash generative, and we have a robust balance sheet and funding liquidity. While we continue to assess the impact of the crisis on our markets, and we expect near-term revenue to be affected, the nature of our business means we have a degree of resilience. We are taking mitigating cost actions in the short term, but we are also positioning ourselves to emerge strongly by continuing to invest in our people and growth initiatives."
Cassin added: "The Covid-19 pandemic has highlighted the fundamental importance of data as we tackle this unprecedented challenge. We are proud of the way our people and business have stepped up to provide broader help in this time of crisis. We have a role to play in helping societies recover, and we are leading the way in providing education, advice and free tools to consumers as well as significant and valuable help to governments across the world. We are confident that, once the crisis abates, we will be well placed to continue to deliver on our growth agenda. Accordingly, we have held our second interim dividend level at 32.5 cents per share."
By Anna Farley; [email protected]
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