Experian plc (LON:EXPN) has once again demonstrated its strength in the data analytics and credit reporting sector with a robust H1 performance. Following the latest research update by Shore Capital, the company has delivered organic revenue growth of 7%, coupled with a 60bps increase in margins, solidifying its position as a leader in the industry.
Robin Speakman, Research Analyst at Shore Capital, commended Experian’s performance, noting that the financial results were “close to our modelled expectations and supporting our stance for the full year.” He further highlighted that the company’s full-year guidance remains intact, with margins anticipated to reach the top end of the prior range.
Highlights from Experian’s H1 Results
Experian reported revenues of $3.6 billion, reflecting a 7% year-on-year growth on an underlying basis, with adjusted EBIT reaching $1.0 billion—a notable 8% increase. The interim dividend also saw a 7% rise to 19.25 cents, underscoring the company’s commitment to shareholder returns.
The research report underscores the resilience of Experian’s regional and sectoral performance, particularly in consumer services across the UK, Ireland, and Latin America. Speakman observed that “discrepancies were a slightly stronger Consumer performance across all territories…and a weaker B2B performance in the UK & Ireland.”
With the acquisition of Ilion and strengthened operations in Australia and New Zealand, Experian is now better positioned to enhance margins and revenue consistency in its emerging EMEA and APAC markets.
A Positive Outlook for the Future
Shore Capital’s updated model reflects increasing confidence in Experian’s ability to deliver sustainable growth. Margins are projected to expand, with adjusted EPS forecast for FY25 rising to 157 cents. Speakman shared that “our confidence is increasing over delivery and the extent of the opportunity for Experian,” further adding that future years show strong potential for continued growth, supported by asset allocation flexibility and reduced capex levels.
The report also highlights Experian’s strategic positioning as a business that remains indispensable to the global economy. With an increasing reliance on data and AI-driven analytics, Experian is well-placed to capitalise on emerging opportunities while maintaining its role as a critical player in its sector.
Valuation and Investment Case
Experian Plc’s valuation reflects its enduring growth trajectory. The stock’s forward price-to-earnings ratio of 31.8x for FY25 is set to decline to 27.1x for FY26, offering compelling investment potential. Speakman confidently reaffirmed Shore Capital’s “BUY” recommendation, emphasising that the company’s “margin guidance is being delivered” and highlighting its strong cash generation and strategic asset allocation.
Final Thoughts
Experian continues to impress with its consistent delivery of growth and profitability. With a clear focus on innovation, regional expansion, and strong financial management, the company is poised for sustained success. As Robin Speakman aptly summarises, Experian’s “economic returns well above cost of capital” and its ability to deliver on margin guidance make it a standout investment opportunity.
