Experian’s full-year pre-tax profit climbs to £760 million

Experian plc (LON: EXPN) reported an increase in its pre-tax profit for fiscal 2021 on Wednesday and expressed confidence that its revenue will climb significantly this year.

Experian shares tanked close to 5% on market open on Wednesday. Including the price action, the stock is now exchanging hands at £25.36 per share. In comparison, it had started the year 2021 at a higher £29.09 per share.

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Experian performed fairly upbeat in the stock market last year with an annual gain of a little under 10%. At the time of writing, it is valued at £23.25 billion and has a price to earnings ratio of 49.96.

Experian reports £3.80 billion of revenue

Experian recorded £760 million of pre-tax profit for the year that concluded on 31^st March. The consumer credit reporting agency attributed its hawkish performance to net finance costs that it slashed by £91.88 million. In fiscal 2020, Experian’s profit was capped at a lower £665.76 million.

The Anglo-Irish firm valued its revenue at £3.80 billion in 2021 versus the year-ago figure of £3.66 billion. Revenue from consumer services jumped 17% on an annualised basis, and free consumer memberships increased to 110 million.

The FTSE 100 listed company noted a 4% growth in organic revenue and a 7% increase in total revenue. For the ongoing financial year, Experian now forecasts an up to 9% growth in organic revenue and up to 13% increase in total revenue. In the prior quarter (Q3), Experian’s organic revenue had come in 7% higher.

Experian’s total dividend remains unchanged

Experian’s board declared 33.22 pence per share of total dividend on Wednesday that remained unchanged from the previous year. Commenting on the financial update on Wednesday, CEO Brian Cassin said:

“FY21 was a year when we unlocked the power of data for consumers, clients and communities across the world, using our skills and capabilities to help governments and societies to respond to the crisis, hospitals to marshal resources, governments to support businesses, and charities to care for the most vulnerable. Data will also be a key driver of economic growth as the recovery gathers pace, and we will be a leading champion in using data to create a better tomorrow.”

In separate news from the United Kingdom, AstraZeneca said that the COVID-19 vaccine it developed in collaboration with Oxford University works well as a third booster dose.