Credit checker Experian was the top riser on the FTSE 100 yesterday despite warning turnover could be about to dip.
It was barely affected by the coronavirus crisis in the most recent financial year, which ended on March 31.
Revenues jumped 7 per cent to £4.3billion, while profits fell 2 per cent to £770million.
Credit checker Experian was barely affected by the coronavirus crisis in the most recent financial year, which ended on March 31
But Dublin-based Experian warned that organic revenues, which strip out any boost in sales from acquisitions, had decreased by 5 per cent in April and could drop by as much as 10 per cent during the first quarter.
Investors shrugged this off, though, taking a longer view.
The type of credit data check Experian offers may be needed now more than ever by struggling businesses and individuals who could become ‘susceptible to fraudsters and criminal organisations’, the company said.
At a time when many people’s jobs are at risk, more people will want to know where they stand when it comes to their mortgages and loans.
Stock Watch – Echo Energy
Echo Energy bounced after it told investors its work in Argentina has continued during the pandemic.
The gas-focused group has secured extensions to contracts with two key customers.
And it is working out what impact support from the Argentinian government for domestic energy companies could have on its operations.
This could include restarting production at wells it had stopped using.
Shares in the AIM-listed group jumped 34.8 per cent, or 0.2p, to 0.78p.
Chief executive Brian Cassin said that the coronavirus pandemic had ‘highlighted the fundamental importance of data’, adding that in his view the company ‘has a role to play in helping societies recover’.
Those lofty goals sent Experian’s shares rocketing – it was up 7.4 per cent, or 186p, to 2708p.
Experian’s jump helped to nudge the FTSE 100 1.1 per cent higher, or 64.93 points, to 6067.16, after making early losses.
London’s premier index was also boosted by blue-chip engineering giant Rolls-Royce, which climbed 2.3 per cent, or 6.1p, to 273.7p after it announced thousands of job cuts following the crisis in the travel industry.
The plane engine-maker will slash 8,000 roles in its civil aerospace division in addition to 1,000 it was lining up as part of a restructuring plan launched in 2018.
And water company Severn Trent (up 1.8 per cent, or 42p, to 2446p) also made gains after it pledged to pay a final dividend of 60p per share, up from 56p last year.
The utility giant reckons the coronavirus pandemic is likely to lead to a rise in unpaid bills and a fall in sales to businesses over the next year, with so many people now working from home.
On the mid-cap index, investors cheered as bookie William Hill rose 3.3 per cent, or 4p, to 126p, saying it expected to reclaim up to £150million from the taxman after gambling groups won a £1billion legal battle over the tax paid on controversial fixed-odds betting terminals.
Ladbrokes Coral-owner GVC did not make a statement yesterday but its shares climbed by 3.1 per cent, or 24.2p, to 811.2p, and it has said that it could make up to £200million from the ruling.
And gambling software maker Playtech rose 6 per cent, or 13.9p, to 244.9p after reporting its financial trading division had benefited from the see-sawing stock markets and higher trading volumes triggered by the pandemic.
The mid-cap FTSE 250 index as a whole advanced 0.3 per cent, or 47.4 points, to 16,367.48.
Elsewhere, oil services firm Lamprell was one of the day’s big winners after it signed a new contract with the Sharjah National Oil Corporation, valued at anything between £5million and £41million. Its shares rocketed 76.7 per cent, or 8.9p, to 20.5p.
On AIM, e-sports firm Gfinity rose 10 per cent, or 0.15p, to 1.65p after it extended its partnership with motor racing company Formula One.
The group, which runs video game tournaments, will deliver the main elements of the F1 Esports Series this year and in 2021 – as well as the 2022 qualifying events.
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