Experian reports full year results

Source: Experian

Highlights

Sales from continuing activities up 14% at constant exchange rates to $3.4bn, with 8% organic growth (total sales $3.5bn)

Continuing EBIT up 16%. Total EBIT of $825m, up 11% at constant exchange rates, including $8m restructuring charge

Excellent full-year performance
  • fifth consecutive year of double-digit sales and EBIT growth
  • strong organic sales growth across all three regions
  • good EBIT margin progression
  • strong cash generation
  • delivery against key strategic and operational objectives
  • acquisitions on track


EBIT margin from continuing activities of 21.8%, up 80 basis points, excluding FARES contribution

Profit before tax from continuing operations of $394m. Basic EPS of 49.9 cents

Net debt of $1.4bn reflecting strong cash flow conversion, with 97% conversion of EBIT into operating cash flow

Second dividend of 11.5 cents per share, to give full year dividend of 17 cents per share

John Peace, Chairman of Experian, said: "Experian has made an excellent start in its life as an independent company. Over the past year, we have made progress strategically and operationally, while delivering a fifth consecutive year of double-digit sales and EBIT growth."

Commenting on the performance of Experian, Don Robert, Chief Executive Officer of Experian, said: "Looking forward, while we face some specific market challenges, the strength of our portfolio of businesses underpins our confidence for the current year and beyond. We remain focused on delivering organic sales growth, improved margins and strong cash flow. For the current year as a whole, we expect to deliver organic sales growth at a mid to high single-digit rate, with some acceleration as we move into the second half."

Overview of structure of financial information

On 10 October 2006, the separation of Experian and Home Retail Group was completed by way of demerger. As part of this transaction, Experian Group Limited became the ultimate holding company of GUS plc c and related subsidiaries. Experian Group Limited has accounted for its insertion at the top of the group in accordance with the principles of merger accounting. As a result of the demerger, there are a number of presentational changes to the financial information as previously reported in the prospectus dated 14 September 2006 and the interim results released on 21 November 2006. The principal change relates to the net interest expense.

In summary, the financial information is prepared on the following basis:

The reported interest income and expense, taxation and dividend in the year ended 31 March 2007 reflect the pre-demerger structure for the period until demerger and thereafter the post demerger structure and the impact of the IPO proceeds. They are therefore not comparable with the prior year nor are they representative of future periods.

The results (including sales, operating profit, interest, taxation and cash flow) of Home Retail Group to the date of demerger are included in discontinued operations.

The balance sheet at 31 March 2006 represents the GUS group position at that date including Home Retail Group and has been represented in US dollars. The balance sheet at 31 March 2007 is representative of Experian as a standalone business.

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