Why Experian Is Up 21% This Year

LONDON -- Experian (ISE: EXPN.L) has advanced more than 21% to 1,068 pence so far during 2012, making the share one of this year's best performers in the FTSE 100 (UKX).

The company, which helps organizations manage credit risk and prevent fraud, and also provides credit check data to individuals, seems to have impressed investors with a series of positive statements.

During January, Experian issued an interim management, which showed a strong performance in the third quarter. Total revenue increased by 12%, and organic revenue rose by 7%. Its Credit Services operation contributed an impressive 15% growth in organic revenue.

During June, the annual report for the year to March 31, 2012, was published. Group revenue rose 15%, with Latin America's rise of 23% offsetting single-digit growth in other regions. Overall, the group's financial objectives for growth, margins, and cash flow conversion were all either met or exceeded.

Then in July, an interim management statement for the three months to June 30, 2012, revealed 14% growth in total revenue, and a 9% increase in organic revenue. Latin America was again the standout region, recording a 33% rise in total revenue.

Don Robert, chief executive officer, commented:

We continue to execute against our growth strategy, though looking ahead we are mindful of tougher conditions in some markets, notably in the eurozone. For the first half, we expect high single-digit organic revenue growth and for EBIT to progress in line with revenues, on a constant currency basis. For the full year, we continue to expect performance to be consistent with our core financial objectives of mid to high single-digit organic revenue growth, to maintain or improve margin and achieve cash flow conversion of over 90%.

Experian's next trading update -- its half-year report -- will be published on Nov. 8, which may reveal further good news that can impress investors.

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