GUS confirms review that could spin off Experian

LONDON - John Peace, chief executive of GUS, has announced during a presentation of the retailer's preliminary results that the board has decided to undertake a two-year strategic review that could result in a demerger of Experian.

The review will consider "all strategic options", which could include keeping the group's current structure, including retail chains Homebase and Argos, or a demerger of Experian, which analysts have valued at between £3.5bn and £4.5bn as a standalone company.

In the 12 months to March 31 2004, GUS reported group sales up 6% to £7.5bn, with underlying profits up 29% to £827m. Experian's sales were up 14% to £1.29bn with profits up 20% to £282m.

In addition to providing consumer credit checks to lenders, Experian uses it consumer credit databases as sources of marketing information for larger marketers to enhance prospect lists.

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