Experian 2008 Annual Report Download - page 18

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16 Experian Annual Report 2008
UK and Ireland
UK and Ireland performed well despite a difficult
market environment for the financial services sector.
This reflected the balance and diversity of the
Experian portfolio. There was significant investment
in new products, both organically and via acquisition,
and a focus on enhancing operational efficiency.
Credit Services
Includes consumer credit and
business information bureaux and
automotive and insurance services
Total revenue for Credit Services
increased by 4% at constant exchange
rates, with organic revenue growth
of 1%. Acquisitions contributed 3%
to revenue growth, primarily The pH
Group. There was good progress in
business information over the year,
which offset weakness in consumer
information. This weakness was
attributable to the unprecedented
market conditions that affected the
financial services sector and which
led to lower transaction volumes
on consumer credit information
products. Elsewhere, there were
good performances in new vertical
markets; in telecommunications
Experian continues to gain share, and
there has been significant progress
in the UK public sector with four
substantial multi-year contract wins.
There was also good progress with
large financial services customers,
including a significant multi-year
renewal with HBOS at increased
contract value.
Strategically, Experian maintains its
focus on product innovation and a
strong new product pipeline has been
built which will support both business
and consumer information activities,
including new services in the trade
credit sector, as well as in account
management and collections. During
the year, there was also further focus
on enhancing operational efficiency
with new investment in low-cost
delivery centres.
Decision Analytics
Includes credit analytics, decision
support software and fraud solutions
Total revenue at Decision Analytics
increased by 8% at constant
exchange rates, flat on an organic
basis. Acquisitions contributed
the growth, namely Tallyman and
N4 Solutions. Performance was
affected by the challenging market
environment for financial services.
Lower credit origination volumes
impacted revenue from application
processing, while capital expenditure
cutbacks by lenders gave rise to
delays in pipeline conversion. These
factors were counterbalanced by
good growth in fraud prevention
software where new client wins were
secured for Experian’s Hunter and
Probe solutions.
During the year, Experian
acquired the Tallyman collections
management software business and
N4 Solutions, a mortgage sector and
financial services software provider.
Both acquisitions have performed
very well, benefiting from their
integration into Experian. Tallyman
has generated multiple new business
wins in the financial services,
telecommunications and utilities
sectors, while N4 Solutions secured
new contracts with Norwich Union
and Nationwide. There was also
significant organic investment in new
products to help lenders with default
and insolvency consultancy, public
sector scoring, plus further initiatives
in fraud solutions.
• Revenue from continuing
activities up 8% at constant
exchange rates; 3% organic
• EBIT flat year-on-year at
constant exchange rates
• Portfolio balance offset
challenging market
environment for financial
services sector activities
• Considerable progress in
new vertical markets
• Significant new product
investment, both organically
and via acquisition
• Interactive performed
strongly, nearly doubling
revenue year-on-year at
constant exchange rates