Credit checking firm Experian said yesterday it was not banking on any "short-term recovery" in the UK financial services sector.

MATT DICKINSON

Credit checking firm Experian said yesterday it was not banking on any "short-term recovery" in the UK financial services sector.

The Nottingham-based group unveiled dips in both its UK and US credit services arms of 2% and 5% respectively during the last quarter, thanks to weaker demand for information from banks and other lenders.

However, the downturn was mitigated by demand from businesses for more accurate customer and risk management data amid the tougher environment.

Experian's overall organic revenue growth for the three months to June 30 was 1% - better than the flat-to-1%-decline expected by the City. Shares in Experian, which has information on 300 million customers worldwide including around 40 million in the UK, rose nearly 7.9% after the update.

Chief executive Don Robert said: "We are very pleased with the resilience of the business. Experian has continued to grow which is a considerable achievement given that the market conditions in parts of the US and UK continue to be challenging."

He added: "Looking ahead, while we do not plan on the basis of any short-term recovery in the US and UK financial services markets, we expect strength in new geographies and across many business lines to support group revenue growth."

The group has made between 800 and 900 job cuts as part of an $80m (£40m) efficiency programme.