Experian, the credit-checking agency once owned by the GUS conglomerate, alarmed investors today after it gave a cautious outlook on the UK market for the second six months of its financial year.

Shares in the company, which was spun out of GUS in 2006, fell by 2.08 per cent, or 12.5p, to 589.5p after it described the UK market as "again challenging" in an update on trading over the second half.

Despite increased competition in the UK, Experian reported a 12 per cent increase in sales and said full-year profits would be "strong" but investors remained worried.

The tough market in the UK and Ireland since October had restricted second-half organic sales growth in the region to 6 per cent, Experian said. It added that both its credit checking and marketing businesses were affected.

While the credit-checking unit posted sales growth in the "low single digit" area, trading at the marketing solutions arm was only "in line with last year".

Experian said last month that its UK marketing operations for data, processing and database management were being merged into one, with 100 jobs set to go as a result. Today, it said restructuring costs would come in at about $12 million (£5.98 million).

Analysts are currently predicting full-year pre-tax profits just above £380 million.

Don Robert, chief executive at Experian, said: "While we continue to face challenges in some of the markets in which we operate, we look forward to the future with confidence."

Organic sales growth in the UK was slower than in the Americas, where organic sales grew 9 per cent, and the rest of Europe and Asia-Pacific, where sales rose by 8 per cent.

Total organic sales growth over the period for Experian was 8 per cent, up on the 7 per cent posted over the first half.

Overall sales, aided by Experian's acquisitions spree, were stronger, growing 14 per cent in the UK and Ireland, 12 per cent in the Americas and 9 per cent in Europe, the Middle East, Africa and Asia-Pacific. Experian has made five acquisitions since gaining its own listing.

Meanwhile, Burberry, the upmarket clothing retailer that was also spun out of GUS last year, unnerved investors when it revealed that the strength of sterling against the yen would knock £7 million off its profits in the coming financial year.

Shares fell to 702p from 709p despite Burberry posting a 15 per cent sales increase to £850 million for the full year to March 31, 2007. Revenue from Burberry's stores leapt by 24 per cent to £410 million, outstripping growth from its wholesale and licensing operations.

Full-year turnover from Burberry's wholesale division rose by 8 per cent while sales generated by its licensing agreements increased by 10 per cent to £86 million.

Burberry's second largest market is Asia Pacific, after the UK, which generated sales of £115 million, up from £107 million, in the six months to March 31, 2007.

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