Experian Plc – Resilient 1Q21 Earnings

Updated on
  • Experian plc (LON:EXPN), the global information services company has released its results for the year to 31 Mar 2021.

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2021 hedge fund letters, conferences and more

  • Underlying revenues rose 7% to $5.4bn and operating profits rose by 3% to $1.4bn. The company held its dividend flat, at USc 47.0.
  • The numbers met the markets’ expectations and with a confident outlook from the company, the shares responded by rising 0.3% in early trading.

Experian's Double-Digit Revenue Growth

Commenting on the results, Steve Clayton, fund manager of the HL UK Growth Shares fund, which holds Experian said:

“Experian’s ability to continue driving organic revenues forward, even through a pandemic is impressive. Their expectation of double-digit revenue growth and rising profit margins in the current year should be well received by investors. Many companies will be forecasting the same this year of course, but most will be doing so from a much-reduced base; Experian’s record of growth through adversity, with a notable acceleration as economies emerge from the pandemic sets it apart.

As ever, the company’s strength in the Americas drove the overall growth. Revenue growth approaching 10% over there more than offset a contraction in the rest of the world and Experian’s Consumer Services division was the stand-out product group, with revenues rocketing ahead by 17%.

The world is ever more data driven as the digital transformation continues. That leaves Experian well placed. Demand for the data they collect and analyse is rising steadily with a growing product portfolio serving ever-wider markets. Today’s numbers reinforce Experian’s profile of being a company which enjoys resilient demand when times are tough and buoyant growth when conditions ease. We have held the company in our HL Select UK Growth Shares fund since the day we launched back in 2016 and unsurprisingly, it remains one of our top positions”.

About us

Over 1.6 million clients trust us with £132.9 billion (as at 30 April 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Our purpose is to empower people to save and invest with confidence and help them build their financial resilience over the long-term. We provide a lifelong, secure home for people’s savings and investments that offers great value and an incredible service making their financial life easy.

Clients rate our service highly, 90% say we are good, very good or excellent. Our expert research has been helping investors for almost 40 years through thick and thin.

In 2018, we also launched Active Savings, an online cash savings platform that lets savers move money easily between partner banks and building societies to help their money work harder without the hassle.

Find out more about HL and our history, what it’s like to work with us, and how we support our community, including our response to the COVID-19 pandemic.

Press centre: https://www.hl.co.uk/about-us/press

Investor relations: www.hl.co.uk/investor-relations