GUS PLC
27 April 2006
27 April 2006
GUS plc
Experian's phased withdrawal from large scale
UK account processing
Experian, the global leader in value-added information solutions, today
announces its phased withdrawal from large scale credit card and loan account
processing in the UK.
Experian currently provides account processing services to a number of large
credit card, store card and loan providers in the UK. It provides software and
systems to run all aspects of card and loan processing. This has been a
successful business for Experian for many years but there is now increasing
client consolidation, with major clients taking these services in house as their
scale grows. As a result of these trends, this business, which accounts for less
than 3% of Experian revenue, is now contracting.
Experian is fully committed to servicing all existing contracts and the phased
withdrawal from UK large scale account processing will enable it to continue to
meet those clients' needs until Autumn 2009 as they move their operations in
house or to third parties. Experian expects to continue to build on the
significant relationships it has with these clients, who already purchase
products and services in other areas of the company.
In the year to 31 March 2006, sales in UK account processing fell to about £44m,
generating EBIT of approximately £20m. The latter has been boosted in the last
12 months by an efficiency programme, including cost reductions in areas such as
sales and business development. With the planned contraction of the business,
the profit of this activity will decline over the next few years, with EBIT in
the year to 31 March 2007 expected to be no more than half the 2006 level. The
costs of withdrawal, all of which are cash, will be about £15m. These will be
charged against EBIT in the year to 31 March 2007.
Experian will continue to invest in account processing operations in other
markets and other countries, including France and Germany.
Enquiries
GUS
David Tyler Group Finance Director 020 7495 0070
Fay Dodds Director of Investor Relations
Finsbury
Rupert Younger 020 7251 3801
Rollo Head
This information is provided by RNS
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