Experian
CREDIT services have been under pressure in the recession as people have cut back on spending, but Experian is clearly now on the up again.
Its first quarter results – showing total revenue growth of seven per cent – are its strongest for three years.
It has delivered improved performances worldwide with organic growth in North America up five per cent, Latin America up 22 per cent and EMEA/Asia Pacific up two per cent. UK and Ireland, which saw revenues fall one per cent, are the only blip.
The improvement in the US, which accounts for 53 per cent of group revenue and 63 per cent of EBIT, is a good indication of the turnaround in its fortunes.
And credit card services should start to grow in the UK with the expansion of fraud prevention measures in the public sector set to boost revenues. Strong cash flow, its $300m share buyback and hiked dividend are all in its favour. The shares deserve a re-rating.