Global data and information services company Experian (EXPN) jumped to the top of the FTSE 100 leader board on Wednesday, up 8.4% to £27.34 after it posted strong full year results and said it was positioning itself ‘to emerge strongly’ from the crisis by investing in people and growth initiatives.
Turnover for the year to the end of March rose 8% on a like for like basis to $5.18bn, helped by a strong fourth quarter, with limited impact from the pandemic.
Annual growth was strongest in North America, up 11% like for like, and Latin America up 13%, while the UK and Ireland registered a 2% fall in revenues. For the fourth quarter, North American growth accelerated to 13% while revenues in the UK and Ireland dropped 5%.
In addition to organic growth, the firm made further strategic progress with the acquisitions of Compuscan, one of Africa’s leading credit bureau, and a majority stake in Germany’s second largest credit bureau, AFS Risk Management, after the end of the financial year.
While the crisis has led to a ‘significant shutdown in activity’ across its main markets, the impact on turnover so far has been mild compared with other industries.
Like for like revenues were down 5% in April, and the firm is predicting a fall of between 5% and 10% for the quarter to the end of June.
Much will depend on the impact of stay-at-home policies on global economic activity, the positive effects of government stimulus measures, and the company’s ability to serve ‘the shifting needs and demands of clients and consumers.’
However, thanks to the geographic and business spread of Experian’s businesses, and a range of short-term actions to mitigate costs, the firm has been able to avoid furloughing any employees or taking other forms of government aid, which means it can continue to pay dividends from its significant free cash flow.
Among its consumer products, Boost has seen a ‘phenomenal’ response from users since it launched last March, especially in the US.
Boost allows consumers to improve their credit files using non-traditional sources like utility and mobile phone bills.
