Experian enjoys returns to organic growth on US consumer bounce

Experian finished its self-imposed "year of transition" on a high as it returned to organic revenue growth in the fourth quarter, celebrating by paying a second interim dividend.

In the third quarter, organic revenue had been flat, though total revenue had growth at a faster rate of 2%.

For the full year, total revenue from continuing activities grew 1% to $4.81bn, with profit before tax slightly above flat at $751m.

Benchmark earnings per share rose 4% to 95.2 cents and EPS from continuing operations were 1% higher at 76.9 cents - a little light against consensus estimates.

With strong operating cash flow resulting in 104% conversion of earnings before interest and tax into operating cash flow, net debt reduced by $592m and a second interim dividend of 27 cents was paid, giving a full year payment of 39.25 cents per share, up 5% but slightly short of City forecasts due to currency headwinds.

Chief executive Brian Cassin said the company had completed an "important" year: "We delivered strong growth across many parts of the business, have made further progress with earnings and are increasing returns to shareholders."

Regionally, Experian enjoyed stronger performances from North American credit services, in all areas of the UK business, and in Asia Pacific and Brazil.

The strong performance in North America was thanks to a better environment for lending as well as particularly good results from business information, automotive and health.

Cassin's guidance for the new year was to reiterate his medium-term plans for mid single-digit organic revenue growth and strong growth in earnings per share.

"In the coming year, we expect organic revenue growth to progress as we focus on our growth initiatives and as we continue to transform North America consumer services. While foreign exchange is a headwind, at constant currency we expect margins for the year to be stable and to deliver further progress in benchmark earnings per share."