Full-year financial report

Preliminary results for the year ended 31 March 2018

7am, 17 May 2018 ─ Experian plc, the global information services company, today issues its financial report for the year ended 31 March 2018.

A strong finish to the year.

  • Q4 total revenue growth of 12% and Q4 organic revenue growth of 8%
  • North America Consumer Services returned to growth in Q4 and UK trends continued to improve.

FY18: good progress, with momentum in B2B* and improving trends in Consumer Services.

  • 8% total revenue growth, 8% total Benchmark EBIT growth, 11% Benchmark EPS growth.
  • 5% organic revenue growth, 8% B2B organic revenue growth.
  • Benchmark EBIT margin of 27.7%, in line with prior year at constant rates, up 10 basis points at actual rates.
  • Strong cash conversion of 93% and Return on Capital Employed of 15.7%.

Significant progress on our strategy.

  • Key investments to add new sources of data, e.g. low income lending, mobile phone, affordability.
  • Strong client reception for product introductions such as Experian Ascend, PowerCurve Collections, CrossCore, and a strong pipeline of future initiatives underway.
  • Good initial market reception for consumer identity protection offers and significant steps taken to advance position in consumer credit comparison.
  • Proposed acquisition of ClearScore will extend services to UK consumers.

Continuing commitment to shareholder returns and disciplined capital allocation:

  • $305m acquisitions and investments completed.
  • Over US$950m returned to shareholders in the year, by dividends and share repurchases.
  • Second interim dividend up 10% to 31.25 US cents per ordinary share; total dividend for FY18 up 8% to 44.75 US cents per share.
  • New net share repurchase programme of up to US$400m.

 

Statutory financial highlights

  2018 US$m 2017 US$m Total Growth %
Revenue 4,662 4,335 8
Operating profit 1,095 1,075 2
Profit before tax  994  1,071   (7)
Profit after tax from cont. operations  845  812
Basic EPS (Continuing)  US92.1c   US86.5c
Basic EPS 4  US88.9c  US92.1c  (3)

 

Benchmark financial highlights¹

  2018 US$m  2017² US$m   Actual rates growth % Constant rates growth % 
 Revenue¹   4,657   4,330  8
 Benchmark EBIT3  1,290  1,197   8
 Benchmark PBT  1,206   1,124 
 Benchmark Earnings  897  831  8
 Benchmark EPS  US97.8c   US88.4c  11  10
 Total dividend  US44.75c   US41.5c  8 n/a 

 

1 Revenue from ongoing activities. See Appendix 1 on page 15 and note 4 to the financial statements on pages 26-27 for definitions of non-GAAP measures.
2 Results for 2017 are restated for exited business activities, comprised of our Experian Public Records business, divested in March 2018.
3 See page 7 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.
4 Basic EPS has reduced to 88.9 US cents from 92.1 US cents (2017). The decrease reflects higher non-cash costs for financing fair value remeasurements (see Note 7a) and a loss from discontinued operations (see Note 10a). * B2B = business-to-business activities consists of Credit Services (7% organic revenue growth), Decision Analytics (12%) and Marketing Services (7%) business lines.

Brian Cassin, Chief Executive Officer, commented:

“We delivered a strong performance in FY18 as we execute on our innovation agenda and our One Experian approach. Growth was particularly strong across B2B and we have made significant progress in Consumer Services, which returned to growth in North America in the fourth quarter. “The investments we have made will continue to power our performance. We begin the year with momentum in the business, and we expect another year of strong performance, with EBIT growth at or above revenue growth and further strong progress in Benchmark earnings per share.”

 

View the full press release in PDF format

 

Contacts 

Experian

Nadia Ridout-Jamieson             Investor queries                                   +44 (0)20 3042 4215

Gerry Tschopp                          Media queries

Finsbury

Rollo Head                                                                                            +44 (0)20 7251 3801

Jenny Davey

There will be a presentation today at 9.30am (UK time) to analysts and investors at the Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live via the link from the Experian website at www.experianplc.com and can also be accessed live via a telephone dial-in facility: 0800 783 0906 (UK primary) or 01296 480 100 (UK direct) or +44 1296 480 100 (International direct), using access code 774 306 59. The supporting slides and an indexed replay will be available on the website later in the day.

Experian will update on first quarter trading for FY19 on 13 July 2018.

Roundings

Certain financial data has been rounded within this announcement. As a result of this rounding, the totals of data presented may vary slightly from the actual arithmetic totals of such data.

Forward looking statements

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward-looking statements. See Note 26 for further information on risks and uncertainties facing Experian.

Company website

Neither the content of the Company’s website, nor the content of any website accessible from hyperlinks on the Company’s website (or any other website), is incorporated into, or forms part of, this announcement.

About Experian

Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have 16,500 people operating across 39 countries and every day we’re investing in new technologies, talented people and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.