Anglo-Dutch publisher Reed Elsevier (REL) unveiled a simplified operating structure and a new name, RELX, alongside this decent set of full-year results. Change isn't unusual at the group, which owns the world's largest scientific journal publishing and events businesses, Elsevier and Reed Exhibitions: it has already transformed itself from a print publisher into a technology, analytics and specialist content powerhouse.
Ignore event cycles and revenues rose 3 per cent, lifting adjusted operating profit by 5 per cent to £1.74bn. That reflected innovation, international expansion and Reed's unwavering focus on improving its content platforms. It also pruned its portfolio, making 17 disposals, and shelled out £385m for 27 assets - spanning automotive telematics, healthcare data and anti-money-laundering software.
Strip out currency impacts and operating profits rose across the board. That included a 12 per cent increase in exhibitions, as the division launched 36 new events and expanded into fast-growing countries and industries. Moreover, the insurance side of its risk division benefited from buoyant demand for US auto underwriting and mounting interest in its security and fraud-detection services. Depressed US and European markets weighed on the legal division, but operating profit still climbed a tenth thanks to a streamlined portfolio and greater efficiency.
Broker Numis expects pre-tax profits of £1.72bn this year, giving EPS of 61.8p, up from £1.58bn and 56.1p in 2014.
| REED ELSEVIER (REL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,142p | MARKET VALUE: | £20.8bn | |
| TOUCH: | 1,142-1,143p | 12-MONTH HIGH: | 1,199p | LOW: 852p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 116p* | NET DEBT: | 166% | |
| Year to 31 Dec | Turnover (£bn)† | Pre-tax profit (£bn)† | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 6.06 | 0.8 | 27.3 | 20.4 |
| 2011 | 6.00 | 0.9 | 32.4 | 21.6 |
| 2012 | 6.12 | 1.2 | 44.8 | 23.0 |
| 2013 | 6.04 | 1.2 | 48.8 | 24.6 |
| 2014 | 5.77 | 1.2 | 43.0 | 26.0 |
| % change | -4 | +3 | -12 | +6 |
Ex-div: 30 Apr Payment: 22 May *Includes intangible assets of £8.15bn, or 448p a share †Turnover and pre-tax profit are for the combined Anglo-Dutch entity, while earnings and dividend per share are for Reed Elsevier plc | ||||
