Callcredit still on buying trail as it increases share

The private equity-backed firm recently made three significant acquisitions, as it increased its profits and market share.

Over the past decade, the Leeds-based group, which was founded by Skipton Building Society, has expanded rapidly to compete with rivals Experian and Equifax.

Callcredit has money to invest after London-based private equity firm Vitruvian Partners bought Skipton Building Society’s majority stake, with the support of the management team, in December 2009.

During 2011, profits from operations rose by 11.2 per cent to £12.4m, and revenues grew by 50 per cent to £91.6m. Staff numbers increased from 800 to 900.

Callcredit launched Noddle, a service that offers people free access to their personal credit reports for life. It recently bought The Trading Floor, which has a large consumer database, and digital marketing agency Latitude Digital Marketing. It also acquired TenantID, which has a database of private tenants in the UK and Ireland.

John McAndrew, the chief executive of Callcredit Information Group, said: “These results show that even in tough times and in a competitive market, where margins are continually being squeezed, we are still delivering innovation and service to our customers.

“In 2011, we were able to demonstrate continued growth and investment in our business and our people, enabling us to outperform the market.

“However, as we grow as a business it is important not to lose sight of what our customers want so that we can listen and react accordingly. Remaining nimble and flexible in a changing world is essential in order to respond to the many challenges. We continue to retain the enviable position of being able to grow our business and have the financial resources to do so, helped by the continued support of our private equity partners Vitruvian.”

Mr McAndrew said that the group hoped to hire another 100 staff this year and was also hunting further acquisitions.

He said Callcredit loved businesses with smart management teams and strong intellectual property, which could be bolted on to the group’s existing services. He also stressed that around half of the group’s growth had been organic in a competitive market.