Shares in Relx (REL) were marked up on release of its 2018 numbers, as the provider of information-based analytics saw its investors look past a pull-back in reported earnings and a hefty net debt overhang. The latter point wouldn't have come as a surprise given the group made nine acquisitions worth almost £1bn last year, against just £123m in 2017.
Underlying revenues improved by 4 per cent, with single-digit upticks across all four businesses. Risk and business analytics enjoyed the largest underlying gain, at 8 per cent – or 2 per cent on a reported basis to £2.12bn. Reported EPS for 2018 declined after the inclusion of a non-cash credit tied to US tax reforms in 2017.
Numis forecasts adjusted pre-tax profits of £2.2bn and EPS of 89p for 2019 (2018: £2.1bn and 84.1p).
| RELX (REL) | ||||
| ORD PRICE: | 1,752p | MARKET VALUE: | £ 34.4bn | |
| TOUCH: | 1,751.5-1,752.5p | 12-MONTH HIGH: | 1,757p | LOW: 1,424p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 119p* | NET DEBT: | £6.2bn | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
| 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 | 36.0 |
| 2017 (restated)** | 7.34 | 1.72 | 81.6 | 39.4 |
| 2018 | 7.49 | 1.72 | 71.9 | 42.1 |
| % change | +2 | - | -12 | +7 |
| Ex-div: | 02 May | |||
| Payment: | 04 Jun | |||
| *Includes intangible assets of £10.4bn or 531p a share. **2017 numbers have been restated to reflect adoption of new accounting rules | ||||
