Experian hammered by foreign exchange headwinds
Information services group Experian grew total and organic revenue 5% at constant exchange rates in the year to 31 March, it reported on Wednesday, to $4.55bn, with total revenue from continuing activities sitting at $4.48bn.
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At actual exchange rates, however, revenue dipped 4%, with the company citing foreign exchange headwinds throughout much of its preliminary results.
The FTSE 100 firm posted EBIT from continuing activities of $1.2bn, up 5% at constant exchange rates but down 6% at actual exchange rates, with total EBIT of $1.21bn.
Its EBIT margin from continuing activities remained stable at constant exchange rates, though the impact of foreign exchange reduced the margin by 60 basis points to 26.7%.
Experian’s benchmark profit before tax totalled $1.14bn for the year, with benchmark earnings per share of 89.1 cents.
The company posted a cash flow conversion of 105%, with net debt decreasing by $194m and net debt-to-EBITDA ratios remaining steady at 1.9x.
"We have made significant progress against our strategic objectives over the past year,” said chief executive Brian Cassin.
“We have returned Experian to organic revenue growth within our target range and driven greater efficiencies in our business, whilst rigorously applying our robust capital framework.”
Cassin said as the company looked forward, it was investing in a range of initiatives which will help it deliver another year of growth, “within our target range of mid single-digit organic revenue growth, with stable margins and further progress in Benchmark earnings per share."
Experian’s board announced a second interim dividend of 27.5 cents per ordinary share, taking the total for the year to 40 cents, an increase of 2% which it said reflected the underlying strength notwithstanding foreign exchange headwinds.