TIDMREL
RNS Number : 8279G
RELX PLC
29 July 2021
29 July 2021
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2021
RELX, the global provider of information-based analytics and
decision tools, reports results for the first half of 2021 and
updates the full year outlook.
Highlights
Ø Revenue GBP3,394m (GBP3,501m), constant currency growth +4%
Ø Adjusted operating profit GBP1,023m (GBP990m), constant currency
growth +11%
Ø Adjusted profit before tax GBP953m (GBP909m), constant currency
growth +13%
Ø Reported operating profit GBP860m (GBP747m)
Ø Reported profit before tax GBP825m (GBP666m)
Ø Adjusted EPS 40.0p (39.1p), constant currency growth +10%
Ø Interim dividend 14.3p (13.6p) +5%
Ø Reported EPS 34.5p (28.4p)
Ø Net debt/EBITDA 2.8x; adjusted cash flow conversion 112%
Full year 2021 outlook
Based on the improved performance in Risk, STM and Legal in the first
half, we expect full year underlying growth rates in revenue and adjusted
operating profit, as well as constant currency growth in adjusted earnings
per share, to be slightly above historical trends.
Chief Executive Officer, Erik Engstrom, commented:
"RELX delivered a strong first half with underlying growth
trends across almost all market segments returning to the improving
trajectory that we saw in the early part of 2020. We believe that
this improvement is a reflection of our continuing strategy of
focusing on the organic development of increasingly sophisticated
analytics and decision tools that deliver enhanced value to our
customers across market segments. Recent acquisitions, which have
supplemented our organic growth strategy, have continued to perform
well."
Chair, Paul Walker, commented:
"I am very pleased that RELX has continued to make good progress
both operationally and strategically in the first half of 2021. In
the few months since taking on the position of Chair I have been
impressed by the way in which RELX has prioritised supporting our
customers across all business areas, and has continued to invest
behind our strategic objectives whilst building on our strong ESG
performance. In recognition of the positive financial momentum we
have announced an increase in the interim dividend of 5% to
14.3p."
ENQUIRIES: Colin Tennant (Investors) Paul Abrahams (Media)
+44 (0)20 7166 5751 +44 (0)20 7166 5724
Operating and financial review
Revenue GBP3,394m (GBP3,501m); constant currency growth +4%: The
constant currency growth rate reflects good growth in electronic
revenues (90% of the total), driven by further development of
analytics and decision tools.
Adjusted operating profit GBP1,023m (GBP990m); constant currency
growth +11%: Growth in adjusted operating profit exceeded growth in
revenue, resulting in an improvement in adjusted operating margin
to 30.1%.
Reported operating profit GBP860 m (GBP747m): Reported operating
profit includes amortisation of acquired intangible assets of
GBP143m (GBP164m) and portfolio related costs of GBP16m
(GBP26m).
Adjusted profit before tax GBP953m (GBP909m); constant currency
growth +13%: Adjusted profit before tax benefited from lower
adjusted net interest expense of GBP70m (GBP81m) with the reduction
reflecting lower average net borrowings and lower average interest
rates.
Reported profit before tax GBP825m (GBP666m): Reported profit
before tax includes disposal net gains of GBP39m (GBP6m). Reported
net interest expense was GBP74m (GBP87m).
Tax: The adjusted tax charge was GBP185m (GBP162m), including
some non-recurring credits. The adjusted effective tax rate was
19.4% (17.8%). The reported tax charge was GBP164m (GBP124m).
Earnings per share: Adjusted EPS 40.0p (39.1p); Reported EPS
34.5p (28.4p).
Dividend: We are declaring an interim dividend of 14.3p (13.6p).
Our long-term dividend policy is unchanged.
Net debt/EBITDA 2.8x (3.2x) including leases and pensions: The
leverage ratio reduced compared to the end of 2020 as EBITDA
increased in line with higher adjusted operating profit. Net debt,
including leases, was GBP6.3bn (GBP7.5bn) at 30 June 2021.
Excluding leases and pensions, net debt/EBITDA was 2.5x ( 2.8x).
Adjusted cash flow conversion was 112% (101%).
Portfolio development: In the first half of 2021 we completed 5
small acquisitions for a total consideration of GBP46m, and
disposed of a number of small assets for a total consideration of
GBP5m.
Share buybacks : As previously announced, the share buyback was
suspended in April 2020. The Board does not intend to resume the
programme in 2021.
Environmental, social and governance (ESG) recognition: Since
the start of the year, RELX has achieved a AAA MSCI ESG rating for
a sixth consecutive year; moved up to first in its industry sector
in Sustainalytics ESG rankings; and improved its ranking to third
in the Responsibility100 Index, which measures the FTSE 100 against
the UN Sustainable Development Goals. RELX continues to be one of
41 LEAD companies of the UN Global Compact among approximately
10,000 business signatories.
RELX FINANCIAL SUMMARY
Six months ended 30 June
------------------------------ -----------------------------------------------
Change
2021 2020 at constant
GBPm GBPm Change currencies
------------------------------ ----------- ----- ------------- ------------
Revenue 3,394 3,501 -3% +4%
------------------------------ ----------- ----- ------------- ------------
Adjusted operating profit 1,023 990 +3% +11%
Adjusted operating margin 30.1% 28.3%
------------------------------ ----------- ----- ------------- ------------
Reported operating profit 860 747 +15%
------------------------------ ----------- ----- ------------- ------------
Adjusted net interest expense (70) (81)
------------------------------ ----------- ----- ------------- ------------
Adjusted profit before tax 953 909 +5% +13%
------------------------------ ----------- ----- ------------- ------------
Adjusted tax (185) (162)
Adjusted net profit 771 753 +2% +10%
------------------------------ ----------- ----- ------------- ------------
Reported net profit 664 548 +21%
------------------------------ ----------- ----- ------------- ------------
Reported net margin 19.6% 15.7%
------------------------------ ----------- ----- ------------- ------------
Adjusted earnings per share 40.0p 39.1p +2% +10%
------------------------------ ----------- ----- ------------- ------------
Reported earnings per share 34.5p 28.4p +21%
------------------------------ ----------- ----- ------------- ------------
Net borrowings 6,316 7,511
------------------------------ ----------- ----- ------------- ------------
Ordinary dividend per share 14.3p 13.6p +5%
------------------------------ ----------- ----- ------------- ------------
RELX uses adjusted figures as additional performance measures.
Adjusted figures primarily exclude the amortisation of acquired
intangible assets and other items related to acquisitions and
disposals, and the associated deferred tax movements. Prior year
adjusted amounts have been revised to exclude exceptional costs
incurred at Exhibitions in 2020 as set out on page 22.
Reconciliations between the reported and adjusted figures are set
out on page 30. Constant currency growth rates are based on 2020
full-year average and hedge exchange rates.
Disclaimer regarding forward-looking statements
This announcement contains forward--looking statements within
the meaning of Section 27A of the US Securities Act of 1933, as
amended, and Section 21E of the US Securities Exchange Act of 1934,
as amended. These statements are subject to risks and uncertainties
that could cause actual results or outcomes of RELX PLC (together
with its subsidiaries, "RELX", "we" or "our") to differ materially
from those expressed in any forward--looking statement. We consider
any statements that are not historical facts to be
"forward--looking statements". The terms "outlook", "estimate",
"forecast", "project", "plan", "intend", "expect", "should",
"will", "believe", "trends" and similar expressions may indicate a
forward--looking statement. Important factors that could cause
actual results or outcomes to differ materially from estimates or
forecasts contained in the forward--looking statements include,
among others: the impact of the Covid--19 pandemic as well as other
pandemics or epidemics; current and future economic, political and
market forces; changes in law and legal interpretation affecting
RELX intellectual property rights and internet communications;
regulatory and other changes regarding the collection or use of
third--party content and data; changes in the payment model for our
products; competitive factors in the industries in which we operate
and demand for our products and services; ability to realise the
future anticipated benefits of acquisitions; significant failure or
interruption of our systems; compromises of our cyber security
systems or other unauthorised access to our databases; legislative,
fiscal, tax and regulatory developments; exchange rate
fluctuations; and other risks referenced from time to time in the
filings of RELX PLC with the US Securities and Exchange Commission.
You should not place undue reliance on these forward--looking
statements, which speak only as of the date of this announcement.
Except as may be required by law, we undertake no obligation to
publicly
update or release any revisions to these forward--looking
statements to reflect events or circumstances after the date of
this announcement or to reflect the occurrence of unanticipated
events.
Notes for Editors
About RELX
RELX is a global provider of information-based analytics and
decision tools for professional and business customers. The Group
serves customers in 180 countries in more than 40 offices. It
employs more than 33,000 people of whom almost half are in North
America. The shares of RELX PLC, the parent company, are traded on
the London, Amsterdam and New York stock exchanges using the
following ticker symbols: London: REL; Amsterdam: REN; New York:
RELX. The market capitalisation is approximately
GBP39bn/EUR46bn/$55bn.
RELX PLC
1-3 Strand
London WC2N 5JR
United Kingdom
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