Markets
Reed publishes solid 2011 results
Matthew Jeynes, 16 February 2012
Reed Elsevier was one of the few risers this morning on the FTSE 100 after reporting a solid 2011 performance.
The Anglo-Dutch publisher saw revenues fall 1 per cent to £6 billion but its pre-tax profits rose 23 per cent to £948 million due to improved operating margins.
Reed, which produces a wide range of legal, business and scientific publications, including the journal New Scientist, has raised its full-year dividend 6 per cent to 21.55p.
Anthony Habgood, chairman of Reed Elsevier, commented, ‘All five business areas contributed to underlying revenue growth excluding biennial cycling.
‘Underlying operating profits grew well, and we delivered a good increase in earnings per share. Our cash flow generation has allowed us to invest in our businesses, while maintaining a strong balance sheet.’
The positive results and outlook has pushed Reed’s share price up 1.03 per cent to 539.5p at 9.45am, despite the blue-chip index falling 0.67 per cent.
Reed’s business is still dominated by its science and technology and health sciences division, accounting for 47 per cent of its adjusted operating profit, but it was the profit growth of 12 per cent and 15 per cent in risk solutions and business information divisions respectively that spurred its growth in 2011.
Chief executive officer Erik Engstrom commented, ‘2011 was a year of good progress both strategically and financially.
'Our large subscription and data businesses are performing well and uncertainty in the macro economic environment in the latter part of the year had only a limited impact on some of our more cyclical businesses.
‘The macro economic outlook remains uncertain, but by delivering highly valued products and services to our professional customers, and a relentless focus on process efficiency, we expect to deliver another year of underlying revenue and profit growth in 2012,’ he added.
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