27th Apr 2006 09:30
GUS PLC27 April 2006 27 April 2006 GUS plc Experian's phased withdrawal from large scale UK account processing Experian, the global leader in value-added information solutions, todayannounces its phased withdrawal from large scale credit card and loan accountprocessing in the UK. Experian currently provides account processing services to a number of largecredit card, store card and loan providers in the UK. It provides software andsystems to run all aspects of card and loan processing. This has been asuccessful business for Experian for many years but there is now increasingclient consolidation, with major clients taking these services in house as theirscale grows. As a result of these trends, this business, which accounts for lessthan 3% of Experian revenue, is now contracting. Experian is fully committed to servicing all existing contracts and the phasedwithdrawal from UK large scale account processing will enable it to continue tomeet those clients' needs until Autumn 2009 as they move their operations inhouse or to third parties. Experian expects to continue to build on thesignificant relationships it has with these clients, who already purchaseproducts and services in other areas of the company. In the year to 31 March 2006, sales in UK account processing fell to about £44m,generating EBIT of approximately £20m. The latter has been boosted in the last12 months by an efficiency programme, including cost reductions in areas such assales and business development. With the planned contraction of the business,the profit of this activity will decline over the next few years, with EBIT inthe year to 31 March 2007 expected to be no more than half the 2006 level. Thecosts of withdrawal, all of which are cash, will be about £15m. These will becharged against EBIT in the year to 31 March 2007. Experian will continue to invest in account processing operations in othermarkets and other countries, including France and Germany. Enquiries GUS David Tyler Group Finance Director 020 7495 0070Fay Dodds Director of Investor Relations FinsburyRupert Younger 020 7251 3801Rollo Head This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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