Strong performance by Experian despite difficult conditions

As global business services company, Experian, updates the market on its performance for the first half of the year, Graham Spooner, investment research adviser at The Share Centre, explains what this means for investors.

"Experian reported strong performance for the first half of the year with headline pre-tax profits rising by 20%, ahead of some broker forecasts. Earnings before tax and profit increased by 16% and revenues were up by 15%. These figures show the company is on track to meet its full year expectations of modest margin improvements and good cash flow conversion.

"Experian's growth was again driven by the performance in Latin America and a rise in earnings growth in North America, the UK and Ireland. Investors will be pleased to hear the company expects organic revenue growth for the second half of the year to be as strong as the first half.

"The share price has been holding up well in these difficult conditions and has bounced back strongly since the market crash in August. Long term investors looking for a steady, medium-risk blue chip investment geared for growth may wish to consider Experian. The company's growing exposure to emerging markets and the continued demand for its products in these challenging times is attractive for investors."