Experian 2008 Annual Report Download - page 10

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8Experian Annual Report 2008
Optimise capital efficiency
We remain committed to
maintaining an efficient balance
sheet, consistent with a strong
investment grade credit rating.
We will be flexible where warranted,
for example, following the debt-
financed acquisition of Serasa
in June 2007 our credit ratios
rose above our target levels. We
considered this acceptable as a
temporary position following a
strategically important acquisition.
Since then, net debt has reduced
from US$3.0bn to US$2.7bn as a
result of strong cash conversion.
We will continue to reinvest to
retain competitive advantage and to
make targeted acquisitions that fit
our strategy and meet our financial
hurdles. We will review additional
opportunities for returning surplus
cash to shareholders, as credit ratios
return to levels consistent with a
strong investment grade credit rating.
Dividend
For the year ended 31 March 2008,
we have announced a second
dividend of 12.0 US cents per share
to give a full year dividend of 18.5
US cents per share, in line with our
objective to have cover (based on
Benchmark EPS) of at least three
times on an annual basis. The second
interim dividend will be paid on
25 July 2008 to shareholders on the
register at the close of business on
27 June 2008.
Strengthening our
management team
Our achievements are directly
related to the quality and
commitment of our people, and the
strength of our senior leadership
team. We have created two new
senior leadership roles to ensure
that we operate our business more
globally, in every respect, to meet
the growing needs of our clients.
Revenue Profit
2008 2007 2008 2007
12 months to 31 March US$m US$m US$m US$m
North America1 2,061 1,985 608 573
Latin America1,2 324 5 75 (4)
UK and Ireland 965 843 226 212
EMEA/Asia Pacific 710 574 87 73
Sub total 4,059 3,407 995 855
Central activities – – (57) (47)
Continuing activities 4,059 3,407 938 808
Discontinuing activities3 71 85 7 18
Total 4,130 3,492 945 825
Net interest (126) (111)
Benchmark PBT 819 714
Exceptional items (63) (162)
Amortisation of acquisition intangibles (121) (76)
Goodwill expense (2) (14)
Charges for demerger-related equity incentive plans (49) (24)
Financing fair value remeasurements (29) (35)
Tax expense of associate (6) (9)
Profit before taxation 549 394
Taxation (97) (68)
Profit after taxation for continuing operations 452 326
Benchmark EPS (US cents) 60.3 59.7
Basic EPS for continuing operations (US cents) 43.3 35.1
Weighted average number of ordinary shares (million) 1,009 927
1 The segmental information presented in respect of the Americas for the year ended 31 March 2007 is now further
analysed to show North and Latin America as separate segments
2 Profit includes US$11m Serasa integration charge for the year ended 31 March 2008
3 Discontinuing activities include MetaReward, UK account processing and Loyalty Solutions
Experian is a strong
business performing well
in difficult markets
Chief Executive’s review continued