Double-digit top-line growth across all four business divisions at Relx (REL) helped carry group revenue to record levels. Although a large proportion of that jump came from favourable currency movements, underlying revenue also ticked up 4 per cent. It's the first time sales have exceeded the £6bn mark since the group realigned its focus from print to digital publishing.
Now, electronic and face-to-face products make up 87 per cent of total revenue, which has helped the group sidestep a major decline in print publishing. The scientific, technical and medical division recorded a steep drop in print revenue, particularly in the second half, but this was more than offset by excellent growth in databases and electronic reference products. It's a similar story in the legal division, while 94 per cent of revenue at the risk and business analytics division is now non-print, too.
The group continues to invest in new technology platforms, which sent underlying operating costs up 4 per cent. But tighter control over other expenses helped boost adjusted underlying operating profit by 6 per cent to £2.1bn - 95 per cent of which was converted to cash.
Adjusted earnings per share beat expectations from Numis. The broker now intends to raise forecasts for the year to December 2017 to 79.5p, due to the favourable currency movements (from 72.2p in FY2016).
RELX (REL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,476p | MARKET VALUE: | £30.2bn | |
| TOUCH: | 1,476-1,477p | 12-MONTH HIGH: | 1,514p | LOW: 1,185p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 110p* | NET DEBT | 199% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 6.12 | 1.15 | 44.8 | 23.0 |
| 2013 | 6.04 | 1.20 | 48.8 | 24.6 |
| 2014 | 5.77 | 1.23 | 43.0 | 26.0 |
| 2015 | 5.97 | 1.31 | 46.4 | 29.7 |
| 2016 | 6.90 | 1.47 | 56.3 | 35.95 |
| % change | +15 | +12 | +21 | +21 |
Ex-div: 27 Apr Payment: 22 May *Includes intangible assets of £9.9bn, or 476p a share †Turnover and pre-tax profit are for the combined Anglo-Dutch entity, while earnings and dividend per share are for Relx plc | ||||
