Credit information firm Experian reported an 8 per cent increase in full-year operating profit at constant exchange rates today.
The Dublin-based group, which is best known for running credit checks for banks and other lenders, reported earnings before interest and tax for the year to end-March of $939 million, ahead of forecasts.
Revenue from continuing operations increased by 8 per cent to $3.8 billion, incorporating organic growth of 3 per cent.
"Experian has stood up very well to the economic challenges and delivered very solid results in extraordinary times," Chief Executive Don Robert said.
Experian said it expects little organic growth in the first half of the current year but expects to grow profits at constant currency and broadly maintain margins over the full year.
"There is more stability today in US and UK financial services than over the past 12 months, but this has yet to translate into significant change in client behaviour and the near-term outlook remains weak," said Mr Robert.
Experian said its cost efficiency programme was ahead of plan with savings of $80 million delivered in the year, compared with a target of $70 million, and raised its guidance for annualised savings by $20 million to $150 million.
The reduction in costs helped the group to improve its operating margin by 50 basis points to 23.3 per cent. Experian's credit checking services have been hit by a sharp drop in bank lending in the wake of the global financial crisis.
Aside from the cost efficiency drive, it has responded by developing new products aimed at helping lenders manage default risk.
"We adapted quickly to the economic downturn, redirecting our sales efforts to counter-cyclical products. We've launched global initiatives to satisfy clients growing needs for better risk management," Mr Robert said.
Shares in Experian were up 2 per cent to 496.5 pence at 2.05pm, having earlier been as high as 500 pence.
The group is paying an interim dividend of 13.25 cents, giving a full-year dividend of 20 cents, up 8 per cent. "The dividend increase underscores our confidence in the business and our confidence in the future," said Mr Robert.
Reuters