Credit checking group suffer heavy share losses

Credit checking group Experian suffered heavy share losses today after warning of a further slowdown in revenue growth as embattled banks and credit card firms clamp down on lending.

The credit information giant said it was facing “exceptionally difficult” trading conditions in the US and UK, where lenders have been hit by the credit squeeze and soaring default rares on American sub-prime mortgages.

The firm saw shares plummet more than 16% at one stage, later recovering to settle 12% lower.

Experian reported interim benchmark earnings of $447m (€305m), in line with analyst expectations, and stressed full year figures were still set to match its forecasts.

But investors focused on the group’s outlook for second half sales amid heightened nervousness over the fall-out of the credit crisis.

Experian said: “Organic sales growth slowed in the second quarter and we expect further slowdown in the second half due to the market environment.”