Interim Results - part 2
Unaudited condensed Group half-yearly financial statements
Group income statement
for the six months ended 30 September 2008
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Six months ended 30 September |
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Year ended 31 March |
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2008 |
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2007 |
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2008 |
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(Restated) |
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(Restated) |
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(Note 3) |
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(Note 3) |
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Notes |
US$m |
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US$m |
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US$m |
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Revenue |
7 |
2,017 |
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1,789 |
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3,789 |
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Cost of sales |
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(947) |
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(856) |
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(1,776) |
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Gross profit |
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1,070 |
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933 |
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2,013 |
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Distribution costs |
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(199) |
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(168) |
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(380) |
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Administrative expenses |
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(540) |
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(430) |
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(1,008) |
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Operating expenses |
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(739) |
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(598) |
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(1,388) |
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Operating profit |
7 |
331 |
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335 |
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625 |
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Finance income |
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99 |
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77 |
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206 |
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Finance expense |
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(132) |
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(169) |
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(360) |
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Net financing costs |
11 |
(33) |
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(92) |
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(154) |
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Share of post-tax profits of associates |
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20 |
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27 |
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50 |
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Profit before tax |
7 |
318 |
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270 |
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521 |
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Group tax expense |
12 |
(42) |
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(51) |
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(91) |
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Profit after tax for the financial period from continuing operations |
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276 |
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219 |
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430 |
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(Loss)/profit for the financial period from discontinued operations |
13 |
(4) |
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10 |
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22 |
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Profit for the financial period |
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272 |
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229 |
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452 |
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Attributable to: |
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Equity shareholders in the parent company |
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258 |
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224 |
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437 |
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Minority interests |
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14 |
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5 |
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15 |
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Profit for the financial period |
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272 |
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229 |
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452 |
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Earnings per share |
14 |
US cents |
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US cents |
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US cents |
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- Basic |
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25.5 |
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22.2 |
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43.3 |
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- Diluted |
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25.2 |
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21.9 |
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42.7 |
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Earnings per share from continuing operations |
14 |
US cents |
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US cents |
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US cents |
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- Basic |
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25.9 |
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21.2 |
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41.1 |
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- Diluted |
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25.6 |
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21.0 |
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40.6 |
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Non-GAAP measures |
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Six months ended 30 September |
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Year ended 31 March |
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Reconciliation of profit before tax to Benchmark PBT |
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2008 |
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2007 |
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2008 |
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(Restated) |
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(Restated) |
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(Note 3) |
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(Note 3) |
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Notes |
US$m |
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US$m |
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US$m |
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Profit before tax |
7 |
318 |
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270 |
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521 |
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exclude: exceptional items |
10 |
33 |
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2 |
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55 |
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exclude: amortisation of acquisition intangibles |
10 |
70 |
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50 |
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121 |
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exclude: goodwill adjustment |
10 |
- |
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- |
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2 |
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exclude: charge in respect of the demerger-related equity incentive plans |
10 |
21 |
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24 |
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49 |
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exclude: financing fair value remeasurements |
10 |
(27) |
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34 |
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29 |
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exclude: tax expense on share of profits of associates |
7 |
1 |
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1 |
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6 |
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Benchmark PBT - continuing operations |
7 |
416 |
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381 |
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783 |
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Benchmark earnings per share from continuing operations |
14 |
US cents |
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US cents |
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US cents |
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- Basic |
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30.7 |
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28.5 |
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57.5 |
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- Diluted |
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30.4 |
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28.1 |
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56.8 |
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US cents |
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US cents |
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US cents |
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Dividend per share (including announced first interim dividend) |
15 |
6.75 |
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6.5 |
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18.5 |
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The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.
Unaudited condensed Group half-yearly financial statements
Group balance sheet
at 30 September 2008
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30 September |
31 March |
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2008 US$m |
2007 (Restated) (Note 3) US$m |
2008 US$m |
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Non-current assets |
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Goodwill |
3,379 |
3,549 |
3,605 |
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Other intangible assets |
1,311 |
1,462 |
1,473 |
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Property, plant and equipment |
538 |
602 |
604 |
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Investments in associates |
324 |
291 |
295 |
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Deferred tax assets |
29 |
118 |
26 |
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Retirement benefit assets (note 17) |
109 |
210 |
182 |
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Trade and other receivables |
5 |
36 |
9 |
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Available for sale financial assets |
35 |
36 |
42 |
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Other financial assets |
- |
5 |
24 |
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5,730 |
6,309 |
6,260 |
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Current assets |
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Inventories |
4 |
5 |
4 |
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Trade and other receivables |
758 |
928 |
1,031 |
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Current tax assets |
25 |
22 |
16 |
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Other financial assets |
10 |
6 |
6 |
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Cash and cash equivalents |
174 |
192 |
151 |
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971 |
1,153 |
1,208 |
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Assets of discontinued operations classified as held for sale (note 13) |
267 |
- |
- |
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1,238 |
1,153 |
1,208 |
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Current liabilities |
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Trade and other payables |
(912) |
(1,030) |
(1,279) |
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Loans and borrowings |
(562) |
(72) |
(39) |
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Current tax liabilities |
(112) |
(217) |
(110) |
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Provisions |
(67) |
(46) |
(84) |
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Other financial liabilities |
(31) |
(25) |
(50) |
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(1,684) |
(1,390) |
(1,562) |
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Liabilities of discontinued operations classified as held for sale (note 13) |
(108) |
- |
- |
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(1,792) |
(1,390) |
(1,562) |
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Net current liabilities |
(554) |
(237) |
(354) |
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Total assets less current liabilities |
5,176 |
6,072 |
5,906 |
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Non-current liabilities |
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Trade and other payables |
(46) |
(37) |
(57) |
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Loans and borrowings |
(2,221) |
(3,142) |
(2,811) |
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Deferred tax liabilities |
(161) |
(175) |
(170) |
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Provisions |
(24) |
(39) |
(27) |
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Retirement benefit obligations (note 17) |
(47) |
(59) |
(50) |
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Other financial liabilities |
(574) |
(671) |
(674) |
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(3,073) |
(4,123) |
(3,789) |
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Net assets |
2,103 |
1,949 |
2,117 |
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Equity |
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Share capital (note 21) |
102 |
102 |
102 |
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Share premium (note 21) |
1,449 |
1,441 |
1,442 |
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Retained earnings |
16,172 |
15,914 |
16,065 |
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Other reserves |
(15,768) |
(15,666) |
(15,653) |
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Total shareholders' equity |
1,955 |
1,791 |
1,956 |
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Minority interests in equity |
148 |
158 |
161 |
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Total equity (note 22) |
2,103 |
1,949 |
2,117 |
The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.
Unaudited condensed Group half-yearly financial statements
Group statement of recognised income and expense
for the six months ended 30 September 2008
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Six months ended 30 September |
Year ended 31 March |
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2008 US$m |
2007
(Note 3) US$m |
2008 US$m |
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Net (expense)/income recognised directly in equity |
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Reversal of net investment hedge |
- |
(7) |
(7) |
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Fair value losses on available for sale financial assets |
(5) |
(2) |
(1) |
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Actuarial (losses)/gains in respect of defined benefit pension schemes (note 17) |
(72) |
51 |
15 |
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Currency translation differences |
(147) |
81 |
96 |
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Tax credit/(charge) in respect of items taken directly to equity |
21 |
(15) |
(16) |
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Net (expense)/income recognised directly in equity |
(203) |
108 |
87 |
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Profit for the financial period |
272 |
229 |
452 |
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Total income recognised in the period |
69 |
337 |
539 |
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Total income recognised in the period attributable to: |
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Equity shareholders in the parent company |
71 |
326 |
524 |
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Minority interests |
(2) |
11 |
15 |
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Total income recognised in the period |
69 |
337 |
539 |
The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.
Unaudited condensed Group half-yearly financial statements
Group cash flow statement
for the six months ended 30 September 2008
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Six months ended 30 September |
Year ended 31 March |
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2008 US$m |
2007 (Restated) (Note 3) US$m |
2008 (Restated) (Note 3) US$m |
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Cash flows from operating activities |
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Cash generated from operations (note 18(a)) |
476 |
409 |
1,134 |
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Interest paid |
(86) |
(85) |
(168) |
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Interest received |
10 |
32 |
37 |
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Dividends received from associates |
20 |
23 |
36 |
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Tax paid |
(40) |
(32) |
(79) |
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Net cash inflow from operating activities |
380 |
347 |
960 |
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Cash flows from investing activities |
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Purchase of property, plant and equipment |
(34) |
(43) |
(99) |
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Purchase of other intangible assets |
(112) |
(86) |
(222) |
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Purchase of investments in associates and available for sale financial assets |
(28) |
(1) |
(9) |
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Acquisition of subsidiaries, net of cash acquired |
(52) |
(1,704) |
(1,720) |
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Disposal of subsidiaries |
- |
- |
6 |
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Net cash flows used in investing activities |
(226) |
(1,834) |
(2,044) |
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Cash flows from financing activities |
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|
|
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Purchase of own shares by employee trusts |
- |
(6) |
(6) |
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Issue of ordinary shares |
7 |
6 |
7 |
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Receipt of share option proceeds and sale of own shares |
5 |
24 |
34 |
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New borrowings |
167 |
1,761 |
1,438 |
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Repayment of borrowings |
(84) |
(746) |
(746) |
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Capital element of finance lease rental payments |
(2) |
(2) |
(5) |
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Net (payments)/receipts from derivative financial instruments held to manage currency profile |
(50) |
83 |
54 |
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Dividends paid |
(131) |
(115) |
(193) |
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Net cash flows (used in)/generated from financing activities |
(88) |
1,005 |
583 |
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|
|
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Exchange and other movements |
(22) |
12 |
17 |
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Net increase/(decrease) in cash and cash equivalents - continuing operations |
44 |
(470) |
(484) |
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|
|
|
|
Net decrease in cash and cash equivalents - discontinued operations (note 13) |
(23) |
(8) |
(3) |
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|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
21 |
(478) |
(487) |
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|
|
|
|
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Movement in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 April |
147 |
634 |
634 |
|
Net increase/(decrease) in cash and cash equivalents |
21 |
(478) |
(487) |
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Cash and cash equivalents at the end of the financial period |
168 |
156 |
147 |
|
|
|
|
|
|
Non-GAAP measures |
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Analysis of movement in net debt |
Six months ended 30 September |
Year ended 31 March |
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|
2008 US$m |
2007 US$m |
2008 US$m |
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Net debt at 1 April |
(2,699) |
(1,408) |
(1,408) |
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Net increase/(decrease) in cash and cash equivalents |
21 |
(478) |
(487) |
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Increase in debt |
(81) |
(1,030) |
(707) |
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Exchange and other movements (including movements in respect of debt) |
143 |
(111) |
(97) |
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Net debt at the end of the financial period (note 20) |
(2,616) |
(3,027) |
(2,699) |
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|
|
|
|
The notes on pages 27 to 48 form an integral part of these unaudited condensed Group half-yearly financial statements.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
1. General information
Experian plc (the 'Company') is incorporated and registered in Jersey under Jersey Companies Law as a public company limited by shares. The Company's shares are listed on the London Stock Exchange. The Company changed its name from Experian Group Limited on 21 July 2008.
These unaudited condensed Group half-yearly financial statements were approved for issue on 18 November 2008. No significant events impacting the Group, other than those disclosed in this document, have occurred between 30 September 2008 and that date.
These unaudited condensed Group half-yearly financial statements do not constitute the Group's statutory financial statements. The Group's most recent statutory financial statements, which comprise the annual report and audited financial statements for the year ended 31 March 2008, were approved by the directors on 20 May 2008 and have been delivered to the Jersey Registrar of Companies. The auditors have reported on those financial statements and have given an unqualified report which does not contain a statement under Article 111(2) or Article 111(5) of the Companies (Jersey) Law 1991.
2. Basis of preparation
These unaudited condensed Group half-yearly financial statements for the six months ended 30 September 2008 have been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The unaudited condensed Group half-yearly financial statements should be read in conjunction with the Group's statutory financial statements for the year ended 31 March 2008, copies of which can be found on the Company's website at www.experianplc.com/corporate/financial/reports, and are available upon request from the Company Secretary at Newenham House, Northern Cross, Malahide Road, Dublin 17, Ireland. The Group's statutory financial statements were prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted for use in the European Union and as issued by the International Accounting Standards Board. These are those standards, subsequent amendments and related interpretations issued and adopted by the International Accounting Standards Board that have been endorsed by the European Union.
The unaudited condensed Group half-yearly financial statements of Experian plc and its subsidiary undertakings ('Experian' or the 'Group') comprise the consolidated results of the Group for the six months ended 30 September 2008 and 30 September 2007 and for the year ended 31 March 2008. The financial information for the year ended 31 March 2008 has been extracted from the Group's statutory financial statements for that year. The Group's condensed half-yearly financial statements are unaudited but have been reviewed by the auditors and their report is set out on page 50.
These unaudited condensed Group half-yearly financial statements are presented in US Dollars, rounded to the nearest million, as the US Dollar is the most representative currency of the Group's operations. The unaudited condensed Group half-yearly financial statements are prepared on the historical cost basis modified for the revaluation of certain financial instruments. The principal exchange rates used in preparing the unaudited condensed Group half-yearly financial statements are set out in note 9. Except as indicated in note 3, the financial information has been prepared on a basis consistent with that reported for the six months ended 30 September 2007 and the year ended 31 March 2008.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
3. Comparative information
There have been a number of developments which change the presentation of the comparative financial information and these are summarised as follows:
-
An announcement was made on 15 October 2008 of an agreement to dispose of the Group's transaction processing activities in France and the transaction was completed on 31 October 2008. As a consequence of this agreement, in accordance with the requirements of IFRS 5 'Non-current assets held for sale and discontinued operations', the results and cash flows of that business for the six months ended 30 September 2007 and the year ended 31 March 2008 have been reclassified as discontinued. The results of the EMEA/Asia Pacific geographical segment (shown within note 7) and the Credit Services business segment (shown within note 8(a)) have been restated accordingly. In accordance with the requirements of IFRS 5, the assets and liabilities of this business at 30 September 2008 are separately reported as held for sale in the Group balance sheet.
-
Following a review of the Group's assessment of risks and rewards, there have been a number of changes in the reporting of revenues and profits across the Group's four business segments so that these more appropriately reflect the nature of the underlying businesses and align the risks and rewards of certain smaller businesses with those of the business segments in which they are now reported. The nature and effect of these changes is detailed in note 8(b). The Group does not intend to adopt IFRS 8 'Operating segments' during the current financial year but continues to consider its requirements and will review its segmental reporting as appropriate on the adoption of IFRS 8 in the year ending 31 March 2010. The first reported results under IFRS 8 will be those for the six months ending 30 September 2009 with comparative figures restated as appropriate.
-
Following the acquisition of the initial 65% stake in Serasa in June 2007, provisional fair values for the net assets acquired and goodwill were included in the balance sheet at 30 September 2007. These fair values were finalised by 31 March 2008 and there have been no further revisions in the six months ended 30 September 2008. In accordance with the requirements of IFRS 3 'Business Combinations', the balance sheet at 30 September 2007 has been restated to reflect such items of significance and details of the effect on the balance sheet at that date are set out in note 23(b). There have been no material adjustments in respect of the Group's other acquisitions made prior to 30 September 2007 and accordingly the fair values and goodwill recognised at 30 September 2007 in respect of those acquisitions remain as previously reported. In addition, as indicated in the annual report and audited financial statements for the year ended 31 March 2008, the method of valuation of the put option associated with the minority interest in Serasa was updated after the initial recognition of the liability and this amended basis was used at 31 March 2008. The balance sheet at 30 September 2007 has been restated and this change in method resulted in an increase of US$125m to the initial liability recognised at the date of the written put on the acquisition of Serasa with a corresponding charge to equity. There was no change in the underlying liability between that date and 30 September 2007 but, as a consequence of currency translation movements, the increase in the liability recognised at 30 September 2007 was US$130m with the associated currency translation difference of US$5m charged in the Group statement of recognised income and expense.
-
In the Group's financial statements for the year ended 31 March 2008, in accordance with IFRS 7 'Financial Instruments: Disclosures', gains and losses on fair value hedges were reported on a gross basis in the Group income statement. Comparative figures for the six months ended 30 September 2007 have now been restated and the effect is to increase financing income and financing expense for that period by US$11m.
-
At 31 March 2008, pension assets and liabilities were reported separately in the Group balance sheet where there is no right of offset. Comparative figures have been restated and the effect of this restatement is to increase non-current assets and non-current liabilities at 30 September 2007 by US$59m.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
4. Accounting policies and estimates
These unaudited condensed Group half-yearly financial statements have been prepared applying the same accounting policies, significant judgements made by management in applying them, and key sources of estimation uncertainty applied by the Group that were used in the Group's statutory financial statements for the year ended 31 March 2008. These accounting policies were published within that document and are also available on the Company's website at www.experianplc.com/corporate/financial/reports.
The preparation of half-yearly financial statements requires management to make estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. If in the future such estimates and assumptions, which are based on management's best judgement at the date of the half-yearly financial statements, deviate from actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. There have been no significant changes in the bases upon which estimates have been determined, compared to those applied at 31 March 2008 and no change in estimate has had a material effect on the current period.
The Group has reviewed the valuation of its defined benefit pension scheme and in the light of changes in the key actuarial assumptions an adjustment, as required at 30 September 2008, is incorporated in these unaudited condensed Group half-yearly financial statements. The actuarial assumption with the most significant impact at 30 September 2008 is the discount rate and a rate of 7.3% (2007: 5.9%) has been used at that date. The discount rate used in the year ended 31 March 2008 was 6.9%. An analysis of amounts reported within retirement benefit assets and obligations, together with an analysis of movements in the period, is given in note 17 together with the key actuarial assumptions.
Goodwill held in the Group's balance sheet is tested annually for impairment at the year end. No circumstances have arisen in the six months ended 30 September 2008 to require additional impairment testing.
The Group had no material or unusual related party or share-based payment transactions during the six months ended 30 September 2008. Disclosures in respect of the Group's related party transactions for the period are given in note 26 to these unaudited condensed Group half-yearly financial statements, and full details of share-based payment arrangements were provided in the Group's statutory financial statements for the year ended 31 March 2008.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
The following accounting standards, amendments and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee are effective for the Group’s accounting periods beginning on or after 1 April 2008 but have had no material effect on the results or financial position of the Group:
* These standards are still subject to adoption by the EU.
IFRS 3 (Revised) 'Business Combinations' proposes amendments to accounting for business combinations and the treatment of associated transaction costs and accordingly will impact the accounting treatment of future acquisitions in the financial statements. With that exception, these accounting standards, amendments and interpretations are not expected to have a material effect on the results and net assets of the Group. A number of the developments will lead to additional disclosures.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
6. Use of non-GAAP measures
The Group has identified certain measures that it believes will assist understanding of the performance of the business. The measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted measures. The non-GAAP measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but management has included them as they consider them to be important comparables and key measures used within the business for assessing performance.
The following are the key non-GAAP measures identified by the Group:
Benchmark profit before tax ('Benchmark PBT')
Benchmark PBT is defined as profit before amortisation of acquisition intangibles, goodwill impairments, charges in respect of the demerger-related equity incentive plans, exceptional items, financing fair value remeasurements and taxation. It includes the Group's share of associates' pre-tax profit.
Earnings before interest and tax ('EBIT')
EBIT is defined as profit before amortisation of acquisition intangibles, goodwill impairments, charges in respect of the demerger-related equity incentive plans, exceptional items, net financing costs and taxation. It includes the Group's share of associates' pre-tax profit.
Benchmark earnings per share ('Benchmark EPS')
Benchmark EPS represents Benchmark PBT less attributable taxation and minority interests divided by the weighted average number of shares in issue, and is disclosed to indicate the underlying profitability of the Group.
Exceptional items
The separate reporting of non-recurring exceptional items gives an indication of the Group's underlying performance. Exceptional items are those arising from the profit or loss on disposal of businesses, closure costs of major business units or costs of significant restructuring programmes. All other restructuring costs are charged against EBIT in the segments in which they are incurred.
Operating cash flow
Operating cash flow is calculated as cash generated from operations adjusted for outflows in respect of the purchase of property, plant and equipment and other intangible assets and adding dividends from associates but excluding any cash inflows and outflows in respect of exceptional items. It is defined as EBIT less changes in working capital, add depreciation/amortisation, less capital expenditure, less profit retained in associates.
Net debt
Net debt is calculated as total debt less cash and cash equivalents. Total debt includes loans and borrowings (and the fair value of derivatives hedging loans and borrowings), overdrafts and obligations under finance leases. Interest payable on borrowings is excluded from net debt.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
7. Segmental information - geographical segments
|
Six months ended 30 September 2008 |
|
|
|
|
|
|
|
|||||
|
|
Continuing operations |
|
|
|||||||||
|
|
North America US$m |
Latin America US$m |
UK and Ireland US$m |
EMEA/ Asia Pacific US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations1 US$m |
Total Group US$m |
||||
|
Revenue from external customers |
1,037 |
263 |
505 |
212 |
- |
2,017 |
174 |
2,191 |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Profit |
|
|
|
|
|
|
|
|
||||
|
Operating profit/(loss) |
229 |
46 |
85 |
8 |
(37) |
331 |
(4) |
327 |
||||
|
Net financing costs |
- |
- |
- |
- |
(33) |
(33) |
- |
(33) |
||||
|
Share of post-tax profits/(losses) of associates |
22 |
- |
- |
(2) |
- |
20 |
- |
20 |
||||
|
Profit/(loss) before tax |
251 |
46 |
85 |
6 |
(70) |
318 |
(4) |
314 |
||||
|
Group tax expense |
|
|
|
|
|
(42) |
- |
(42) |
||||
|
Profit/(loss) for the financial period |
|
|
|
|
|
276 |
(4) |
272 |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
||||
|
EBIT |
295 |
68 |
123 |
17 |
(27) |
476 |
|
|
||||
|
Net interest |
- |
- |
- |
- |
(60) |
(60) |
|
|
||||
|
Benchmark PBT |
295 |
68 |
123 |
17 |
(87) |
416 |
|
|
||||
|
Exceptional items (note 10) |
(11) |
- |
(15) |
(3) |
(4) |
(33) |
|
|
||||
|
Amortisation of acquisition intangibles |
(24) |
(22) |
(18) |
(6) |
- |
(70) |
|
|
||||
|
Charges in respect of the demerger-related equity incentive plans |
(8) |
- |
(5) |
(2) |
(6) |
(21) |
|
|
||||
|
Financing fair value remeasurements |
- |
- |
- |
- |
27 |
27 |
|
|
||||
|
Tax expense on share of profit of associates |
(1) |
- |
- |
- |
- |
(1) |
|
|
||||
|
Profit/(loss) before tax |
251 |
46 |
85 |
6 |
(70) |
318 |
|
|
||||
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, discontinued operations comprise the Group's transaction processing activities in France. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13. |
||||||||||||
|
Six months ended 30 September 2007 |
|
|
|
|
|
|
|
||||||
|
|
Continuing operations |
|
|
||||||||||
|
|
North America US$m |
Latin America US$m |
UK and Ireland US$m |
EMEA/ Asia Pacific US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations1 US$m |
Total Group US$m |
|||||
|
Revenue from external customers |
1,020 |
102 |
499 |
168 |
- |
1,789 |
158 |
1,947 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Profit |
|
|
|
|
|
|
|
|
|||||
|
Operating profit/(loss) |
230 |
15 |
108 |
16 |
(34) |
335 |
15 |
350 |
|||||
|
Net financing costs |
- |
- |
- |
- |
(92) |
(92) |
- |
(92) |
|||||
|
Share of post-tax profits of associates |
27 |
- |
- |
- |
- |
27 |
- |
27 |
|||||
|
Profit/(loss) before tax |
257 |
15 |
108 |
16 |
(126) |
270 |
15 |
285 |
|||||
|
Group tax expense |
|
|
|
|
|
(51) |
(5) |
(56) |
|||||
|
Profit for the financial period |
|
|
|
|
|
219 |
10 |
229 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
|||||
|
EBIT |
290 |
24 |
132 |
20 |
(27) |
439 |
|
|
|||||
|
Net interest |
- |
- |
- |
- |
(58) |
(58) |
|
|
|||||
|
Benchmark PBT |
290 |
24 |
132 |
20 |
(85) |
381 |
|
|
|||||
|
Exceptional items (note 10) |
- |
- |
- |
- |
(2) |
(2) |
|
|
|||||
|
Amortisation of acquisition intangibles |
(23) |
(9) |
(16) |
(2) |
- |
(50) |
|
|
|||||
|
Charges in respect of the demerger-related equity incentive plans |
(9) |
- |
(8) |
(2) |
(5) |
(24) |
|
|
|||||
|
Financing fair value remeasurements |
- |
- |
- |
- |
(34) |
(34) |
|
|
|||||
|
Tax expense on share of profit of associates |
(1) |
- |
- |
- |
- |
(1) |
|
|
|||||
|
Profit/(loss) before tax |
257 |
15 |
108 |
16 |
(126) |
270 |
|
|
|||||
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the six months ended 30 September 2007 has been restated to reflect the reclassification of the Group's transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13. |
|||||||||||||
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
7. Segmental information - geographical segments (continued)
|
Year ended 31 March 2008 |
|
|
|
|
|
|
|
|
|||
|
|
Continuing operations |
|
|
||||||||
|
|
North America US$m |
Latin America US$m |
UK and Ireland US$m |
EMEA/ Asia Pacific US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations1 US$m |
Total Group US$m |
|||
|
Revenue from external customers |
2,061 |
324 |
1,024 |
380 |
- |
3,789 |
341 |
4,130 |
|||
|
|
|
|
|
|
|
|
|
|
|||
|
Profit |
|
|
|
|
|
|
|
|
|||
|
Operating profit/(loss) |
473 |
44 |
155 |
29 |
(76) |
625 |
29 |
654 |
|||
|
Net financing costs |
- |
- |
- |
- |
(154) |
(154) |
(1) |
(155) |
|||
|
Share of post-tax profits of associates |
49 |
- |
- |
1 |
- |
50 |
- |
50 |
|||
|
Profit/(loss) before tax |
522 |
44 |
155 |
30 |
(230) |
521 |
28 |
549 |
|||
|
Group tax expense |
|
|
|
|
|
(91) |
(6) |
(97) |
|||
|
Profit for the financial year |
|
|
|
|
|
430 |
22 |
452 |
|||
|
|
|
|
|
|
|
|
|
|
|||
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
|||
|
EBIT |
608 |
75 |
232 |
50 |
(57) |
908 |
|
|
|||
|
Net interest |
- |
- |
- |
- |
(125) |
(125) |
|
|
|||
|
Benchmark PBT |
608 |
75 |
232 |
50 |
(182) |
783 |
|
|
|||
|
Exceptional items (note 10) |
(12) |
- |
(28) |
(9) |
(6) |
(55) |
|
|
|||
|
Amortisation of acquisition intangibles |
(48) |
(31) |
(35) |
(7) |
- |
(121) |
|
|
|||
|
Goodwill adjustment |
(2) |
- |
- |
- |
- |
(2) |
|
|
|||
|
Charges in respect of the demerger-related equity incentive plans |
(18) |
- |
(14) |
(4) |
(13) |
(49) |
|
|
|||
|
Financing fair value remeasurements |
- |
- |
- |
- |
(29) |
(29) |
|
|
|||
|
Tax expense on share of profit of associates |
(6) |
- |
- |
- |
- |
(6) |
|
|
|||
|
Profit/(loss) before tax |
522 |
44 |
155 |
30 |
(230) |
521 |
|
|
|||
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the year ended 31 March 2008 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the EMEA/Asia Pacific geographical segment, is shown in note 13.
|
|||||||||||
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
8. Segmental information - business segments
a) Results by business segment
|
Six months ended 30 September 2008 |
||||||||
|
|
Continuing operations1 |
|
|
|||||
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$m |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations2 US$m |
Total Group US$m |
|
Revenue from external customers |
889 |
261 |
400 |
467 |
- |
2,017 |
174 |
2,191 |
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
226 |
72 |
4 |
81 |
(52) |
331 |
(4) |
327 |
|
Net financing costs |
- |
- |
- |
- |
(33) |
(33) |
- |
(33) |
|
Share of post-tax profit of associates |
20 |
- |
- |
- |
- |
20 |
- |
20 |
|
Profit/(loss) before tax |
246 |
72 |
4 |
81 |
(85) |
318 |
(4) |
314 |
|
Group tax expense |
|
|
|
|
|
(42) |
- |
(42) |
|
Profit/(loss) for the financial period |
|
|
|
|
|
276 |
(4) |
272 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
|
EBIT |
286 |
82 |
35 |
100 |
(27) |
476 |
|
|
|
Net interest |
- |
- |
- |
- |
(60) |
(60) |
|
|
|
Benchmark PBT |
286 |
82 |
35 |
100 |
(87) |
416 |
|
|
|
Exceptional items (note 10) |
(9) |
(7) |
(10) |
(3) |
(4) |
(33) |
|
|
|
Amortisation of acquisition intangibles |
(30) |
(3) |
(21) |
(16) |
- |
(70) |
|
|
|
Charges in respect of the demerger-related equity incentive plans3 |
- |
- |
- |
- |
(21) |
(21) |
|
|
|
Financing fair value remeasurements |
- |
- |
- |
- |
27 |
27 |
|
|
|
Tax expense on share of profit of associates |
(1) |
- |
- |
- |
- |
(1) |
|
|
|
Profit/(loss) before tax |
246 |
72 |
4 |
81 |
(85) |
318 |
|
|
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. The effect on the results for the six months ended 30 September 2008 and the nature of these changes are detailed below.
2 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, discontinued operations comprise the Group’s transaction processing activities in France. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13.
3 No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by geographical segment.
|
||||||||
Effect of reclassifications of reported results within the Group's continuing operations:
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$m |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
|
Revenue from external customers |
|
|
|
|
|
|
|
On basis previously used |
895 |
242 |
420 |
460 |
- |
2,017 |
|
Reclassifications within continuing operations |
(6) |
19 |
(20) |
7 |
- |
- |
|
As now reported |
889 |
261 |
400 |
467 |
- |
2,017 |
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
|
|
|
|
|
|
|
On basis previously used |
226 |
69 |
7 |
81 |
(52) |
331 |
|
Reclassifications within continuing operations |
- |
3 |
(3) |
- |
- |
- |
|
As now reported |
226 |
72 |
4 |
81 |
(52) |
331 |
The above reclassifications comprise:
- the Vente business, previously reported within Marketing Services, is now reported within Interactive;
- the Baker Hill business, previously reported within Credit Services, is now reported within Decision Analytics; and
- the Experian Payments business, previously reported within Marketing Services, is now reported within Credit Services.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
8. Segmental information - business segments (continued)
a) Results by business segment (continued)
|
Six months ended 30 September 2007 |
||||||||
|
|
Continuing operations1 |
|
|
|||||
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$m |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations2 US$m |
Total Group US$m |
|
Revenue from external customers |
748 |
237 |
376 |
428 |
- |
1,789 |
158 |
1,947 |
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
223 |
79 |
17 |
69 |
(53) |
335 |
15 |
350 |
|
Net financing costs |
- |
- |
- |
- |
(92) |
(92) |
- |
(92) |
|
Share of post-tax profit of associates |
27 |
- |
- |
- |
- |
27 |
- |
27 |
|
Profit/(loss) before tax |
250 |
79 |
17 |
69 |
(145) |
270 |
15 |
285 |
|
Group tax expense |
|
|
|
|
|
(51) |
(5) |
(56) |
|
Profit for the financial period |
|
|
|
|
|
219 |
10 |
229 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
|
EBIT |
267 |
80 |
33 |
86 |
(27) |
439 |
|
|
|
Net interest |
- |
- |
- |
- |
(58) |
(58) |
|
|
|
Benchmark PBT |
267 |
80 |
33 |
86 |
(85) |
381 |
|
|
|
Exceptional items (note 10) |
- |
- |
- |
- |
(2) |
(2) |
|
|
|
Amortisation of acquisition intangibles |
(16) |
(1) |
(16) |
(17) |
- |
(50) |
|
|
|
Charges in respect of the demerger-related equity incentive plans3 |
- |
- |
- |
- |
(24) |
(24) |
|
|
|
Financing fair value remeasurements |
- |
- |
- |
- |
(34) |
(34) |
|
|
|
Tax expense on share of profit of associates |
(1) |
- |
- |
- |
- |
(1) |
|
|
|
Profit/(loss) before tax |
250 |
79 |
17 |
69 |
(145) |
270 |
|
|
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. These are detailed in note 8(b) below.
2 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the six months ended 30 September 2007 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13.
3 No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by geographical segment.
|
||||||||
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
8. Segmental information - business segments (continued)
a) Results by business segment
|
Year ended 31 March 2008 |
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Continuing operations1 |
|
|
||||||||||||
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$ |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations2 US$m |
Total Group US$m |
|||||||
|
Revenue from external customers |
1,619 |
505 |
785 |
880 |
- |
3,789 |
341 |
4,130 |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Profit |
|
|
|
|
|
|
|
|
|||||||
|
Operating profit/(loss) |
430 |
143 |
8 |
156 |
(112) |
625 |
29 |
654 |
|||||||
|
Net financing costs |
- |
- |
- |
- |
(154) |
(154) |
(1) |
(155) |
|||||||
|
Share of post-tax profit of associates |
50 |
- |
- |
- |
- |
50 |
- |
50 |
|||||||
|
Profit/(loss) before tax |
480 |
143 |
8 |
156 |
(266) |
521 |
28 |
549 |
|||||||
|
Group tax expense |
|
|
|
|
|
(91) |
(6) |
(97) |
|||||||
|
Profit for the financial period |
|
|
|
|
|
430 |
22 |
452 |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Reconciliation from EBIT to profit/(loss) before tax - continuing operations |
|
|
|
|
|
|
|
|
|||||||
|
EBIT |
544 |
160 |
69 |
192 |
(57) |
908 |
|
|
|||||||
|
Net interest |
- |
- |
- |
- |
(125) |
(125) |
|
|
|||||||
|
Benchmark PBT |
544 |
160 |
69 |
192 |
(182) |
783 |
|
|
|||||||
|
Exceptional items (note 10) |
(13) |
(10) |
(22) |
(4) |
(6) |
(55) |
|
|
|||||||
|
Amortisation of acquisition intangibles |
(45) |
(7) |
(37) |
(32) |
- |
(121) |
|
|
|||||||
|
Goodwill adjustment |
- |
- |
(2) |
- |
- |
(2) |
|
|
|||||||
|
Charges in respect of the demerger-related equity incentive plans3 |
- |
- |
- |
- |
(49) |
(49) |
|
|
|||||||
|
Financing fair value remeasurements |
- |
- |
- |
- |
(29) |
(29) |
|
|
|||||||
|
Tax expense on share of profit of associates |
(6) |
- |
- |
- |
- |
(6) |
|
|
|||||||
|
Profit/(loss) before tax |
480 |
143 |
8 |
156 |
(266) |
521 |
|
|
|||||||
|
1 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, there have been some reclassifications within the reporting of results for continuing operations. These are detailed in note 8(b) below.
2 As indicated in note 3 to these unaudited condensed Group half-yearly financial statements, the segmental information for the year ended 31 March 2008 has been restated to reflect the reclassification of the Group’s transaction processing activities in France as a discontinued operation. Additional information on discontinued operations, the results of which were formerly reported within the Credit Services business segment, is shown in note 13.
3 No allocation by business segment is made for charges in respect of the demerger-related equity incentive plans as the underlying data is maintained only to provide an allocation by geographical segment.
|
|||||||||||||||
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
8. Segmental information - business segments (continued)
b) Restatement of comparative information
As indicated in note 3, there have been a number of changes in the reporting of revenues and profits across the Group's four business segments. These changes comprise the reclassification of the Group's transaction processing activities in France as a discontinued operation and three reclassifications of reported results within the Group's continuing operations, details of which are given on page 34. Additional information on discontinued operations is shown in note 13.
The effect of these changes on the comparative information reported by business segment is as follows:
|
Six months ended 30 September 2007 |
||||||||
|
|
Continuing operations |
|
|
|||||
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$m |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations US$m |
Total Group US$m |
|
Revenue from external customers |
|
|
|
|
|
|
|
|
|
As previously reported |
913 |
219 |
397 |
418 |
- |
1,947 |
- |
1,947 |
|
Reclassified as discontinued |
(158) |
- |
- |
- |
- |
(158) |
158 |
- |
|
Reclassifications within continuing operations |
(7) |
18 |
(21) |
10 |
- |
- |
- |
- |
|
As restated |
748 |
237 |
376 |
428 |
- |
1,789 |
158 |
1,947 |
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
|
|
|
|
|
|
|
|
|
As previously reported |
237 |
77 |
22 |
67 |
(53) |
350 |
- |
350 |
|
Reclassified as discontinued |
(15) |
- |
- |
- |
- |
(15) |
15 |
- |
|
Reclassifications within continuing operations |
1 |
2 |
(5) |
2 |
- |
- |
- |
- |
|
As restated |
223 |
79 |
17 |
69 |
(53) |
335 |
15 |
350 |
|
Year ended 31 March 2008 |
||||||||
|
|
Continuing operations |
|
|
|||||
|
|
Credit Services US$m |
Decision Analytics US$m |
Marketing Services US$m |
Interactive US$m |
Central Activities US$m |
Total continuing US$m |
Discontinued operations US$m |
Total Group US$m |
|
Revenue from external customers |
|
|
|
|
|
|
|
|
|
As previously reported |
1,972 |
469 |
830 |
859 |
- |
4,130 |
- |
4,130 |
|
Reclassified as discontinued |
(341) |
- |
- |
- |
- |
(341) |
341 |
- |
|
Reclassifications within continuing operations |
(12) |
36 |
(45) |
21 |
- |
- |
- |
- |
|
As restated |
1,619 |
505 |
785 |
880 |
- |
3,789 |
341 |
4,130 |
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) |
|
|
|
|
|
|
|
|
|
As previously reported |
459 |
137 |
17 |
153 |
(112) |
654 |
- |
654 |
|
Reclassified as discontinued |
(29) |
- |
- |
- |
- |
(29) |
29 |
- |
|
Reclassifications within continuing operations |
- |
6 |
(9) |
3 |
- |
- |
- |
- |
|
As restated |
430 |
143 |
8 |
156 |
(112) |
625 |
29 |
654 |
9. Foreign currency
The principal exchange rates used were as follows:
|
|
Average |
|
Closing |
||||
|
|
Six months ended 30 September |
Year ended 31 March |
|
30 September |
31 March |
||
|
|
2008 |
2007 |
2008 |
|
2008 |
2007 |
2008 |
|
|
|
|
|
|
|
|
|
|
Sterling : US Dollar |
1.93 |
1.99 |
2.01 |
|
1.79 |
2.04 |
1.99 |
|
US Dollar : Brazilian Real |
1.68 |
1.98 |
1.86 |
|
1.92 |
1.84 |
1.75 |
|
Euro : US Dollar |
1.53 |
1.35 |
1.42 |
|
1.41 |
1.42 |
1.58 |
Assets and liabilities of undertakings whose functional currency is not the US Dollar are translated into US Dollars at the rates of exchange ruling at the balance sheet date and the income statement is translated into US Dollars at average rates of exchange (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates on the dates of the transactions).
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
10. Exceptional items and other non-GAAP measures
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 (Restated) (Note 3) US$m |
|
Exceptional items |
|
|
|
|
Restructuring costs |
30 |
- |
52 |
|
Costs incurred relating to the demerger of Experian and Home Retail Group |
- |
2 |
6 |
|
Closure of UK Account Processing |
- |
- |
(2) |
|
Losses on disposal of businesses |
3 |
- |
2 |
|
Gain arising in associate on the partial disposal of its subsidiary |
- |
- |
(3) |
|
Total exceptional items |
33 |
2 |
55 |
|
|
|
|
|
|
Other non-GAAP measures |
|
|
|
|
Amortisation of acquisition intangibles |
70 |
50 |
121 |
|
Goodwill adjustment |
- |
- |
2 |
|
Charges in respect of the demerger-related equity incentive plans |
21 |
24 |
49 |
|
Financing fair value remeasurements |
(27) |
34 |
29 |
|
Total other non-GAAP measures |
64 |
108 |
201 |
Exceptional items and other non-GAAP measures are in respect of continuing operations.
Exceptional items
Expenditure of US$30m arose in the period in connection with the Group's programme of cost efficiency measures. Of this US$13m related to redundancy, US$5m related to offshoring activities and US$12m related to other restructuring and infrastructure consolidation costs. The prior year comparative for the year ended 31 March 2008 has been reduced by US$8m, reflecting the costs arising in the discontinued transaction processing business in France.
Costs relating to the demerger of Experian and Home Retail Group comprise legal and professional fees in respect of the transaction, together with costs in connection with the cessation of the corporate functions of GUS plc.
In April 2006, Experian announced the phased withdrawal from large scale credit card and loan account processing in the UK. The anticipated cost of withdrawal was charged in the year ended 31 March 2007 and during the year ended 31 March 2008 an exceptional credit arose following the successful transfer of certain employees and obligations of this business to a third party.
In the year ended 31 March 2008, First American Real Estate Solutions LLC ('FARES') recognised gains in respect of a number of disposals and the Group recognised US$3m, its 20% share of such gains.
Cash outflows in respect of exceptional items are analysed in note 18(d).
Other non-GAAP measures
IFRS requires that, on acquisition, specific intangible assets are identified and recognised separately from goodwill and then amortised over their useful economic lives. These include items such as brand names and customer lists, to which value is first attributed at the time of acquisition. The Group has excluded amortisation of these acquisition intangibles from its definition of Benchmark PBT because such a charge is based on judgements about their value and economic life.
In the year ended 31 March 2008, a goodwill adjustment of US$2m arose under IFRS 3 'Business Combinations' on the recognition of previously unrecognised tax losses on prior years' acquisitions. The corresponding tax benefit reduced the tax charge for that year by US$2m.
Charges in respect of demerger-related equity incentive plans relate to one-off grants made to senior management and at all staff levels at the time of the demerger, under a number of equity incentive plans. The cost of these one-off grants is being charged to the Group income statement over the five years from flotation in October 2006, but excluded from the definition of Benchmark PBT. The cost of all other grants is being charged to the Group income statement and included in the definition of Benchmark PBT.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
10. Exceptional items and other non-GAAP measures (continued)
Other non-GAAP measures (continued)
An element of the Group's derivatives is ineligible for hedge accounting under IFRS. Gains or losses on these derivatives arising from market movements, together with gains and losses on put options in respect of acquisitions, are credited or charged to financing fair value remeasurements within finance income and finance expense in the Group income statement.
11. Net financing costs
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 (Restated) (Note 3) US$m |
2008 (Restated) (Note 3) US$m |
|
Interest income: |
|
|
|
|
Expected return on pension scheme assets |
40 |
37 |
76 |
|
Other interest income |
14 |
21 |
20 |
|
Interest income |
54 |
58 |
96 |
|
Financing fair value gains: |
|
|
|
|
Movement in fair value of Serasa put option |
7 |
- |
69 |
|
Other financing fair value gains |
38 |
19 |
41 |
|
Financing fair value gains |
45 |
19 |
110 |
|
Finance income |
99 |
77 |
206 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
Interest expense on pension scheme liabilities |
30 |
27 |
53 |
|
Other interest expense |
84 |
89 |
168 |
|
Interest expense |
114 |
116 |
221 |
|
Financing fair value losses |
18 |
53 |
139 |
|
Finance expense |
132 |
169 |
360 |
|
|
|
|
|
|
Net financing costs |
33 |
92 |
154 |
12. Group tax expense
The effective rate of tax is 13.2% (2007: 19.0% as restated (see note 3)) based on the profit before tax for the six months ended 30 September 2008 of US$318m (2007: US$270m).
The effective rate of tax based on Benchmark PBT of US$416m (2007: US$381m) and the associated tax charge of US$87m (2007: US$86m), excluding the effect of a one-off corporation tax credit of US$20m (2007: US$nil) in respect of prior periods, is 20.9% (2007: 22.7% as restated (see note 3)). The one-off corporation tax credit has been excluded from the calculation of the effective rate of tax based on Benchmark PBT as it relates to arrangements involving entities no longer part of the Group. It is anticipated that the equivalent rate of tax on benchmark earnings for the year ending 31 March 2009 (excluding the US$20m tax credit) will be approximately 22% (2008: 23.4% as restated (see note 3)).
The reconciliation of the tax expense reported in the Group income statement to the Benchmark tax charge is as follows:
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 US$m |
|
Group tax expense |
42 |
51 |
91 |
|
Add: one-off corporation tax credit |
20 |
- |
- |
|
Add: tax relief on exceptional items |
- |
7 |
10 |
|
Add: tax relief on other non-GAAP measures |
24 |
27 |
76 |
|
Tax expense on share of profit of associates |
1 |
1 |
6 |
|
Tax on Benchmark PBT |
87 |
86 |
183 |
The standard rate of corporation tax for the Group's United Kingdom businesses changed to 28% with effect from 1 April 2008.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
13. Discontinued operations
As indicated in note 3, an announcement was made on 15 October 2008 of an agreement to dispose of the Group's transaction processing activities in France. The transaction was completed on 31 October 2008. As a consequence of this agreement, the results and cash flows of that business for the six months ended 30 September 2007 and the year ended 31 March 2008 have been reclassified as discontinued, and the assets and liabilities at 30 September 2008 are separately reported as held for sale in the Group balance sheet.
Results for discontinued operations
|
|
Six months ended 30 September |
|
Year ended 31 March |
||
|
|
2008 US$m |
|
2007 US$m |
|
2008 US$m |
|
Revenue |
174 |
|
158 |
|
341 |
|
Cost of sales |
(127) |
|
(110) |
|
(240) |
|
Gross profit |
47 |
|
48 |
|
101 |
|
|
|
|
|
|
|
|
Distribution costs |
(5) |
|
(7) |
|
(14) |
|
Administrative expenses |
(42) |
|
(26) |
|
(58) |
|
Operating expenses |
(47) |
|
(33) |
|
(72) |
|
|
|
|
|
|
|
|
Operating profit |
- |
|
15 |
|
29 |
|
Net financing expense |
- |
|
- |
|
(1) |
|
Profit before tax of discontinued operations |
- |
|
15 |
|
28 |
|
Tax charge in respect of pre-tax profit |
- |
|
(5) |
|
(6) |
|
Profit after tax of discontinued operations |
- |
|
10 |
|
22 |
|
|
|
|
|
|
|
|
Loss on disposal of discontinued operations: |
|
|
|
|
|
|
Costs in respect of disposal |
(4) |
|
- |
|
- |
|
Loss on disposal |
(4) |
|
- |
|
- |
|
(Loss)/profit for the financial period from discontinued operations |
(4) |
|
10 |
|
22 |
Cash flows attributable to discontinued operations
|
|
Six months ended 30 September |
|
Year ended 31 March |
||
|
|
2008 US$m |
|
2007 US$m |
|
2008 US$m |
|
From operating activities |
(15) |
|
2 |
|
18 |
|
From investing activities |
(9) |
|
(11) |
|
(23) |
|
Exchange and other movements |
1 |
|
1 |
|
2 |
|
Net decrease in cash and cash equivalents in discontinued operations |
(23) |
|
(8) |
|
(3) |
Assets and liabilities classified as held for sale
|
|
30 September 2008 US$m |
|
Assets classified as held for sale: |
|
|
Goodwill |
57 |
|
Other intangible assets |
31 |
|
Property, plant and equipment |
17 |
|
Tax assets |
6 |
|
Trade and other receivables |
156 |
|
Assets classified as held for sale |
267 |
|
|
|
|
Liabilities classified as held for sale: |
|
|
Trade and other payables |
102 |
|
Loans and borrowings |
6 |
|
Liabilities classified as held for sale |
108 |
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
14. Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders of the Company by a weighted average number of the ordinary shares in issue (excluding own shares held in employee trusts, which are treated as cancelled).
The calculation of diluted earnings per share reflects the potential dilutive effect of employee share incentive schemes. The earnings figures used in the calculations are unchanged for diluted earnings per share.
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 |
2007 |
2008 |
|
|
|
(Restated) |
(Restated) |
|
|
|
(Note 3) |
(Note 3) |
|
Basic earnings per share: |
US cents |
US cents |
US cents |
|
Continuing and discontinued operations |
25.5 |
22.2 |
43.3 |
|
Include/(exclude): discontinued operations |
0.4 |
(1.0) |
(2.2) |
|
Continuing operations |
25.9 |
21.2 |
41.1 |
|
Add back of exceptional and other non-GAAP measures, net of tax |
4.8 |
7.3 |
16.4 |
|
Benchmark earnings per share from continuing operations (non-GAAP measure) |
30.7 |
28.5 |
57.5 |
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
Continuing and discontinued operations |
25.2 |
21.9 |
42.7 |
|
Include/(exclude): discontinued operations |
0.4 |
(0.9) |
(2.1) |
|
Continuing operations |
25.6 |
21.0 |
40.6 |
|
Add back of exceptional and other non-GAAP measures, net of tax |
4.8 |
7.1 |
16.2 |
|
Benchmark diluted earnings per share from continuing operations (non-GAAP measure) |
30.4 |
28.1 |
56.8 |
|
|
|
|
|
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 |
2007 |
2008 |
|
|
|
(Restated) |
(Restated) |
|
|
|
(Note 3) |
(Note 3) |
|
Earnings: |
US$m |
US$m |
US$m |
|
Continuing and discontinued operations |
258 |
224 |
437 |
|
Include/(exclude): discontinued operations |
4 |
(10) |
(22) |
|
Continuing operations |
262 |
214 |
415 |
|
Add back of exceptional and other non-GAAP measures, net of tax |
48 |
73 |
166 |
|
Benchmark earnings (non-GAAP measure) |
310 |
287 |
581 |
|
|
|
|
|
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 |
2007 |
2008 |
|
Earnings attributable to minority interests: |
US$m |
US$m |
US$m |
|
Continuing and discontinued operations |
14 |
5 |
15 |
|
Add: amortisation of acquisition intangibles attributable to the minority |
5 |
3 |
6 |
|
Benchmark earnings attributable to minority interests (non-GAAP measure) |
19 |
8 |
21 |
|
|
|
|
|
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 |
2007 |
2008 |
|
Weighted average number of ordinary shares in issue: |
m |
m |
m |
|
Weighted average number of ordinary shares in issue during the period |
1,011.4 |
1,007.7 |
1,008.9 |
|
Dilutive effect of share incentive awards |
11.0 |
13.8 |
13.4 |
|
Diluted weighted average number of shares in issue during the period |
1,022.4 |
1,021.5 |
1,022.3 |
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
15. Dividends
|
|
Six months ended 30 September |
Year ended 31 March |
||||
|
|
2008 |
2008 |
2007 |
2007 |
2008 |
2008 |
|
|
US cents per share |
US$m |
US cents per share |
US$m |
US cents per share |
US$m |
|
Amounts recognised and paid as distributions to equity shareholders: |
|
|
|
|
|
|
|
First interim |
- |
- |
- |
- |
6.5 |
66 |
|
Second interim |
12.0 |
121 |
11.5 |
115 |
11.5 |
116 |
|
Ordinary dividends paid on equity shares |
12.0 |
121 |
11.5 |
115 |
18.0 |
182 |
|
|
|
|
|
|
|
|
|
First interim dividend per ordinary share (announced) |
6.75 |
68 |
6.5 |
66 |
|
|
|
|
|
|
|
|
|
|
|
Full year dividend for the year ended 31 March 2008 |
|
|
|
|
18.5 |
187 |
A first interim dividend of 6.75 US cents per ordinary share will be paid on 30 January 2009 to shareholders on the register at the close of business on 5 January 2009 and is not included as a liability in these financial statements.
Unless shareholders elect by 5 January 2009 to receive US Dollars, their dividends will be paid in Sterling at a rate per share calculated on the basis of the exchange rate from US Dollars to Sterling on 9 January 2009.
Pursuant to the Income Access Share arrangements put in place as part of the demerger, shareholders in the Company are able to elect to receive their dividends from a UK source (the 'IAS election'). Shareholders who held 50,000 or fewer Experian shares (i) on the date of admission of the Company's shares to the London Stock Exchange and (ii) in the case of shareholders who did not own shares at that time, on the first dividend record date after they become shareholders in the Company, unless they elect otherwise, will be deemed to have elected to receive their dividends under the IAS arrangements. Shareholders who hold more than 50,000 shares and who wish to receive their dividends from a UK source must make an IAS election. All elections remain in force indefinitely unless revoked. Unless shareholders have made an IAS election, or are deemed to have made an IAS election, dividends will be received from an Irish source and will be taxed accordingly.
16. Capital expenditure and capital commitments
During the six months ended 30 September 2008 the Group incurred capital expenditure of US$155m, including US$9m in respect of discontinued operations (2007: US$140m, including US$11m in respect of discontinued operations). In the year ended 31 March 2008, capital expenditure was US$344m, including US$23m in respect of discontinued operations.
At 30 September 2008, the Group had capital commitments in respect of property, plant and equipment and intangible assets and for which contracts had been placed of US$10m (2007: US$11m). At 31 March 2008, there were US$15m such commitments.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
17. Retirement benefit assets/obligations
a) Defined benefit schemes
|
Amounts recognised in the Group balance sheet |
|
|
|
|
|
30 September |
31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 US$m |
|
Retirement benefit assets: |
|
|
|
|
Market value of funded schemes' assets |
856 |
1,157 |
1,045 |
|
Present value of funded schemes' liabilities |
(747) |
(947) |
(863) |
|
Retirement benefit assets - surplus in the funded schemes |
109 |
210 |
182 |
|
|
|
|
|
|
Retirement benefit obligations: |
|
|
|
|
Present value of unfunded pension arrangements |
34 |
39 |
35 |
|
Liability for post-retirement healthcare |
13 |
20 |
15 |
|
Retirement benefit obligations |
47 |
59 |
50 |
|
|
|
|
|
|
Net pension asset |
62 |
151 |
132 |
|
The Group's retirement benefit assets/obligations are denominated primarily in Sterling. |
|||
|
|
|
|
|
|
Movements during the period in the net pension asset |
|||
|
|
30 September |
31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 US$m |
|
Net pension asset at 1 April |
132 |
85 |
85 |
|
Differences on exchange |
(8) |
7 |
- |
|
Amounts recognised in Group income statement |
1 |
(2) |
11 |
|
Actuarial (losses)/gains recognised in Group statement of recognised income and expense |
(72) |
51 |
15 |
|
Contributions paid by the Group |
9 |
10 |
21 |
|
Net pension asset at balance sheet date |
62 |
151 |
132 |
|
|
|
|
|
|
Amounts recognised in Group income statement |
|
|
|
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 US$m |
|
Administrative costs1 |
9 |
12 |
12 |
|
Net financing income |
(10) |
(10) |
(23) |
|
Total (credit)/charge to Group income statement |
(1) |
2 |
(11) |
1 Administrative costs for the year ended 31 March 2008 are stated after exceptional income of US$5m.
|
Actuarial assumptions |
|
|
|
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 % |
2007 % |
2008 % |
|
Rate of inflation |
3.7 |
3.3 |
3.6 |
|
Rate of increase for salaries |
5.5 |
5.1 |
5.4 |
|
Rate of increase of pensions in payment and deferred pensions |
3.7 |
3.3 |
3.6 |
|
Rate of increase in medical costs |
6.5 |
6.5 |
6.5 |
|
Discount rate |
7.3 |
5.9 |
6.9 |
The mortality assumptions used at 30 September 2008 remain unchanged from those used at 31 March 2008.
b) Defined contribution schemes
The assets of such schemes are held separately from those of the Group in independently administered funds.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
18. Notes to the Group cash flow statement
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 (Restated) (Note 3) US$m |
2008 (Restated) (Note 3) US$m |
|
a) Cash generated from operations |
|
|
|
|
Operating profit |
331 |
335 |
625 |
|
Loss on sale of property, plant and equipment |
4 |
- |
3 |
|
Depreciation and amortisation |
213 |
171 |
406 |
|
Goodwill adjustment |
- |
- |
2 |
|
Charge in respect of equity incentive plans |
36 |
38 |
66 |
|
Change in working capital (note 18(b)) |
(93) |
(119) |
23 |
|
Exceptional items included in working capital |
(15) |
(16) |
9 |
|
Cash generated from operations |
476 |
409 |
1,134 |
|
|
|
|
|
|
b) Change in working capital |
|
|
|
|
Increase in inventories |
(1) |
(1) |
- |
|
Decrease/(increase) in receivables |
49 |
(26) |
(51) |
|
(Decrease)/increase in payables |
(141) |
(91) |
79 |
|
Difference between pension contributions paid and amounts recognised in Group income statement |
- |
(1) |
(5) |
|
Change in working capital |
(93) |
(119) |
23 |
|
|
|
|
|
|
c) Purchase of other intangible assets |
|
|
|
|
Databases |
81 |
62 |
148 |
|
Internally generated software |
22 |
17 |
42 |
|
Internal use software |
9 |
7 |
32 |
|
Purchase of other intangible assets |
112 |
86 |
222 |
|
|
|
|
|
|
d) Cash outflow in respect of exceptional items |
|
|
|
|
Total exceptional items (note 10) |
33 |
2 |
55 |
|
Working capital movements |
15 |
16 |
(9) |
|
Assets write-offs |
(2) |
- |
(12) |
|
Gains in associates |
- |
- |
3 |
|
Cash outflow in respect of exceptional items |
46 |
18 |
37 |
19. Reconciliation of cash generated from operations to operating cash flow (non-GAAP measure)
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 (Restated) (Note 3) US$m |
2008 (Restated) (Note 3) US$m |
|
Cash generated from operations (note 18(a)) |
476 |
409 |
1,134 |
|
Purchase of property, plant and equipment |
(34) |
(43) |
(99) |
|
Purchase of other intangible assets (note 18(c)) |
(112) |
(86) |
(222) |
|
Dividends received from associates |
20 |
23 |
36 |
|
Net cash outflow from exceptional items (note 18(d)) |
46 |
18 |
37 |
|
Operating cash flow |
396 |
321 |
886 |
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
20. Analysis of net debt (non-GAAP measure)
|
|
30 September |
31 March |
|
|
|
2008 US$m |
2007 US$m |
2008 US$m |
|
Cash and cash equivalents (net of overdrafts) |
168 |
156 |
147 |
|
Derivatives hedging loans and borrowings |
(36) |
(45) |
(43) |
|
Debt due within one year |
(551) |
(30) |
(29) |
|
Finance leases |
(12) |
(18) |
(16) |
|
Debt due after more than one year |
(2,185) |
(3,090) |
(2,758) |
|
Net debt at the end of the financial period |
(2,616) |
(3,027) |
(2,699) |
|
|
|
|
|
|
Continuing operations |
(2,610) |
(3,039) |
(2,701) |
|
Discontinued operations |
(6) |
12 |
2 |
|
Net debt at the end of the financial period |
(2,616) |
(3,027) |
(2,699) |
|
|
|
|
|
|
Net debt by balance sheet caption: |
|
|
|
|
Cash and cash equivalents |
174 |
192 |
151 |
|
Loans and borrowings (current) |
(562) |
(72) |
(39) |
|
Loans and borrowings (non-current) |
(2,221) |
(3,142) |
(2,811) |
|
Liabilities of discontinued operations classified as held for sale (note 13) |
(6) |
- |
- |
|
Net debt by balance sheet caption |
(2,615) |
(3,022) |
(2,699) |
|
exclude: interest payable on borrowings |
35 |
40 |
43 |
|
include: derivatives hedging loans and borrowings |
(36) |
(45) |
(43) |
|
Net debt at the end of the financial period |
(2,616) |
(3,027) |
(2,699) |
At 30 September 2008, the Group had committed borrowing facilities of US$2,530m (2007: US$2,450m) which expire more than two years after the balance sheet date, of which US$934m (2007: US$719m) was undrawn. At 31 March 2008, the amount undrawn under these facilities was US$1,121m.
During the six months ended 30 September 2008, 6.375% Eurobonds 2009 with a par value of £42m were redeemed. The balance of these Eurobonds, which was £308m (US$553m) at 30 September 2008, falls due for repayment in July 2009.
During the six months ended 30 September 2007, the whole of the outstanding balance of the 4.125% Euronotes 2007 was repaid on their maturity at the par value of €548m.
21. Share capital and share premium
|
|
Number of shares m |
Share capital US$m |
Share premium
US$m |
|
At 1 April 2007 |
1,022.3 |
102 |
1,435 |
|
Employee share option schemes - proceeds from shares issued |
0.9 |
- |
6 |
|
At 30 September 2007 |
1,023.2 |
102 |
1,441 |
|
Employee share option schemes - proceeds from shares issued |
0.2 |
- |
1 |
|
At 31 March 2008 |
1,023.4 |
102 |
1,442 |
|
Employee share option schemes - proceeds from shares issued |
1.2 |
- |
7 |
|
At 30 September 2008 |
1,024.6 |
102 |
1,449 |
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
22. Group reconciliation of movements in total equity
|
|
Six months ended 30 September |
Year ended 31 March |
|
|
|
2008 US$m |
2007 (Note 3) US$m |
2008 US$m |
|
Total equity at 1 April |
2,117 |
2,107 |
2,107 |
|
Profit for the financial period |
272 |
229 |
452 |
|
Net (expense)/income recognised directly in equity for the financial period |
(203) |
108 |
87 |
|
Employee share option schemes: |
|
|
|
|
- value of employee services |
36 |
41 |
65 |
|
- proceeds from shares issued |
7 |
6 |
7 |
|
Exercise of share options |
5 |
25 |
34 |
|
Liability on put option over minority interests |
- |
(591) |
(591) |
|
Minority interest arising on business combinations |
- |
146 |
155 |
|
Decrease in minority interests arising due to corporate transactions |
- |
(1) |
- |
|
Purchase of own shares by employee trusts |
- |
(6) |
(6) |
|
Equity dividends paid during the period (note 15) |
(121) |
(115) |
(182) |
|
Dividends paid to minority shareholders |
(10) |
- |
(11) |
|
Total equity at the end of the financial period |
2,103 |
1,949 |
2,117 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity shareholders in the parent company |
1,955 |
1,791 |
1,956 |
|
Minority interests |
148 |
158 |
161 |
|
Total equity at the end of the financial period |
2,103 |
1,949 |
2,117 |
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
23. Acquisitions
a) Acquisition accounting in the period
During the six months ended 30 September 2008 the Group made one acquisition, in connection with which provisional goodwill of US$7m was recognised based on the fair value of the net assets acquired of US$3m. Had this acquisition been completed on 1 April 2008, there would have been no material impact on the results of the Group for the period. Further goodwill of US$19m was recognised in connection with adjustments to contingent consideration in respect of acquisitions made in previous years.
Deferred consideration is primarily payable in cash up to three years after the date of acquisition and in some cases is contingent on the businesses acquired achieving revenue and profit targets. The deferred consideration settled during the period on acquisitions made in previous years was US$42m.
There have been no material gains, losses, error corrections or other adjustments recognised in the six months ended 30 September 2008 that relate to acquisitions that were effected in the current or previous years.
b) Restatement of comparative information
As indicated in note 3, following the acquisition of the initial 65% stake in Serasa in June 2007, provisional fair values for the net assets acquired and goodwill were included in the balance sheet at 30 September 2007. These fair values were finalised by 31 March 2008 and, in accordance with the requirements of IFRS 3 'Business Combinations', the balance sheet at 30 September 2007 has been restated to reflect such items of significance. The reconciliation of the amounts now included within the Group balance sheet at 30 September 2007 is as follows:
|
|
Fair value as reported US$m |
Additional fair value adjustments US$m |
Fair value as restated US$m |
|
Intangible assets - finalisation of valuation of acquisition intangibles |
508 |
23 |
531 |
|
Property, plant and equipment - finalisation of property valuation |
61 |
3 |
64 |
|
Deferred tax assets |
14 |
11 |
25 |
|
Provisions - recognition of additional contingent liabilities |
(23) |
(31) |
(54) |
|
Deferred tax liabilities |
(171) |
92 |
(79) |
|
|
389 |
98 |
487 |
|
|
|
|
|
|
The additional fair value adjustments have given rise to further restatements as follows: |
|||
|
Reduction in goodwill recognised |
(88) |
|
|
|
Increase in debtors in connection with deferred consideration receivable |
19 |
|
|
|
Recognition of additional minority interest |
(29) |
|
|
|
|
(98) |
|
|
24. Contingencies
As was indicated in the annual report and financial statements for the year ended 31 March 2008, there are a number of pending and threatened litigation claims involving the Group in North America and Latin America which are being vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a material adverse effect on the Group's financial position. However, as is inherent in legal proceedings, there is a risk of outcomes unfavourable to the Group. In the case of unfavourable outcomes the Group would benefit from applicable insurance recoveries.
Notes to the unaudited condensed Group half-yearly financial statements
for the six months ended 30 September 2008
25. Seasonality
The Group's revenue is subject to certain seasonal fluctuations, as described in the commentary on page 18.
26. Related parties
The Group's related parties are its associates and key management personnel.
The Group made net sales and recharges, under normal commercial terms and conditions that would be available to third parties, to FARES and its associate First Advantage Corporation, of US$11m in the six months ended 30 September 2008 (2007: US$14m) and US$28m in the year ended 31 March 2008. There were no other significant related party transactions.
Home Retail Group is no longer a related party of the Group and there has been no charge in the period in respect of services provided under the terms of the demerger agreement. At 30 September 2007 and 31 March 2008, there was an amount owed by the Group to Home Retail Group of US$20m in respect of their corporation taxation liabilities at demerger and this balance has now been settled. Other transactions with Home Retail Group are made on normal commercial terms and conditions available to third parties.
27. Corporate website
The Company has a website which contains up to date information on Group activities and published financial results. The directors are responsible for the maintenance and integrity of statutory and audited information on this website. The work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the half-yearly financial report since it was initially presented on the website. Jersey legislation and the United Kingdom regulation governing the preparation and dissemination of financial information may differ from requirements in other jurisdictions.
Statement of directors' responsibilities
The directors are responsible for preparing the half-yearly financial report for the six months ended 30 September 2008 in accordance with applicable law, regulations and accounting standards. In preparing the unaudited condensed Group half-yearly financial statements the directors are responsible for ensuring that they give a true and fair view of the state of affairs of the Group at the end of the period and the profit or loss of the Group for that period.
The directors confirm that these unaudited condensed Group half-yearly financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
The directors of Experian plc are listed in the Group's statutory financial statements for the year ended 31 March 2008. There have been no subsequent changes of directors and a list of current directors is maintained on the Company's website at www.experianplc.com.
By order of the board
Sean FitzPatrick
Director
18 November 2008
Independent review report to Experian plc
Introduction
We have been engaged by Experian plc (the 'Company') to review the condensed Group half-yearly financial statements in the half-yearly financial report for the six months ended 30 September 2008, which comprise the Group income statement, the Group balance sheet, the Group statement of recognised income and expense, the Group cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed Group half-yearly financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed Group half-yearly financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed Group half-yearly financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed Group half-yearly financial statements in the half-yearly financial report for the six months ended 30 September 2008 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
London, United Kingdom
18 November 2008
Notes:
-
The maintenance and integrity of the Experian plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the half-yearly financial report since it was initially presented on the website.
-
Legislation in Jersey and the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.
Shareholder information
Experian website
A full range of investor information is available at www.experianplc.com.
Electronic shareholder communication
Shareholders may register for Shareview, an electronic communication service provided by Equiniti Limited on behalf of the Company's Registrar, Equiniti (Jersey) Limited. Registration is via the Company's website, www.experianplc.com, or direct via www.experianshareview.com.
The service enables shareholders to access a comprehensive range of shareholder services online, including dividend payment information, the ability to check shareholdings, amend address or bank details and submit AGM proxy voting instructions.
When registering for Shareview, shareholders can select their preferred communication method - post or email. All shareholders will receive a written notification of the availability on the Company's website of shareholder documents, such as the annual report, unless they have elected to either (i) receive such notification via email or (ii) receive paper copies of shareholder documents where such documents are available in that format.
Dividend Reinvestment Plan ('DRIP')
The DRIP enables shareholders to use their cash dividends to purchase Experian shares. Shareholders who wish to participate in the DRIP for the first time, in respect of the first interim dividend for the year ending 31 March 2009 to be paid on 30 January 2009, should return a completed and signed DRIP mandate form to be received by the Registrars, by no later than 5 January 2009. For further details, please contact the Registrars.
Capital Gains Tax ('CGT') base cost for UK shareholders
On 10 October 2006, GUS plc separated its Experian business from its Home Retail Group business by way of demerger. Following the demerger, GUS shareholders at 4.30pm on Friday 6 October 2006 were entitled to receive one share in Experian and one share in Home Retail Group plc for every share they held in GUS plc at that time.
The previous base cost of any GUS plc shares held at 4.30pm on 6 October 2006 is apportioned for UK CGT purposes in the following ratio: 58.235% to Experian plc shares and 41.765% to Home Retail Group plc shares (based on the closing prices of the respective shares on their first day of trading after their admission to the Official List of the London Stock Exchange on 11 October 2006).
For GUS plc shares acquired prior to the demerger of Burberry on 13 December 2005 which are affected by both the Burberry demerger and the subsequent separation of Experian and Home Retail Group, the original CGT base cost is apportioned 50.604% to Experian plc shares, 36.293% to Home Retail Group plc shares and 13.103% to Burberry Group plc shares.
Shareholder security
Shareholders are advised to be wary of any unsolicited advice, offers to buy shares at a discount, or offers of free reports about the Company. More detailed information can be found by visiting www.moneymadeclear.fsa.gov.uk. Details of any share dealing facilities that the Company endorses will be included in Company mailings or on the Corporate website.
The Unclaimed Assets Register
Experian owns and participates in The Unclaimed Assets Register, which provides a search facility for shareholdings and other financial assets that may have been forgotten. For further information, please contact The Unclaimed Assets Register, PO Box 9501, Nottingham NG80 2WD, United Kingdom (T: +44 (0) 870 241 1713), or visit www.uar.co.uk.
Shareholder information
American Depository Receipts ('ADR')
Experian has a sponsored Level 1 ADR programme, for which The Bank of New York Mellon acts as Depository. The Level 1 ADR programme is not listed on a stock exchange in the USA and trades in the over-the-counter market under the symbol EXPGY. Each ADR represents one Experian plc ordinary share.
For further information, please contact:
Shareholder Relations
The Bank of New York Mellon
PO Box 11248
Church Street Station
New York
NY 10286 - 1258
United States
T: +1 610 382 7836 (from the USA: 1-888-BNY-ADRS)
|
Financial calendar
|
|
|
First interim dividend record date
|
5 January 2009
|
|
Interim management statement, third quarter
|
15 January 2009
|
|
First interim dividend to be paid
|
30 January 2009
|
|
Trading update, second half
|
16 April 2009
|
|
Preliminary announcement of results
|
20 May 2009
|
|
Interim management statement, first quarter
|
13 July 2009
|
|
Annual General Meeting
|
15 July 2009
|
|
Contacts
|
|
|
Corporate headquarters:
|
Registered office:
|
|
Newenham House
|
22 Grenville Street
|
|
Northern Cross
|
St Helier
|
|
Malahide Road
|
Jersey JE4 8PX
|
|
Dublin 17
|
Registered no. 93905
|
|
Ireland
|
|
|
|
|
|
T: + 353 (0) 1 846 9100
|
|
|
F: + 353 (0) 1 846 9150
|
|
Registrars:
Experian Shareholder Services
Equiniti (Jersey) Limited
11-12 Esplanade
St Helier
Jersey
JE4 8PH
T: +44 (0) 121 415 7586
(or 0845 601 0810 from the UK)
Text phone facility: +44 (0) 121 415 7028
(or 0871 384 2255 from the UK)
This information is provided by RNS
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