Graydon closed 2009 with revenues of € 73.5 million, an increase of 4%, including an adverse currency adjustment of € 1.2 million regarding the UK £ and a onetime adjustment in Belgium of € 0.9 million to bring the revenue recognition policy in Belgium in line with the Group policy. Operational profit increased by 4% to € 20.8 million. At 28.3%, the operational profit margin remained unchanged. The profit for the year came to € 15.0 million, the same as in 2008.
Cash flow from operating activities amounted to € 22.5 million. Investments in business information database updates, technological and product innovations and product development totaled € 9.6 million, 8% higher than in 2008. Investments in software and in the development of web-based products and systems were substantially higher.
Revenue from credit information services increased in 2009 by 18% in Belgium, by 8% in the Netherlands and by 6% in the United Kingdom. The economic downturn also had a positive impact on the debt collection activities as companies were more inclined to pass on debts. Revenue for the year increased by 10% in the Netherlands and by as much as 27% in Belgium.
In 2009 Graydon launched CreditPal, an online service for small businesses based on monthly company financial information. CreditPal allows businesses to upload monthly management account information, free of charge, online at www.creditpal-online.com . This data is standardized and validated by CreditPal and displayed to the user for approval. Relevant financial extracts are then sent to Graydon UK’s credit database for use in the new credit report service. Lenders and credit insurers will be able to gain access to up-to-date management accounts. Insurers are recommending that businesses that take out credit insurance should encourage their small and medium-sized enterprise (SME) clients to use the CreditPal website as it will increase the amount of cover insurers will provide for buyer risks. This may improve their access to finance and credit insurance cover. Graydon’s new credit report is driven by technology and data provided by CreditPal, a joint venture between Graydon UK and Future Route, an accounting software specialist.
Source: Graydon Annual Report 2009
BIIA Newsletter July I – 2010