REG - RELX PLC - RELX 2021 RESULTS

RelxAnnouncement

10/02/2022 07:00

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RNS Number : 2254B  RELX PLC  10 February 2022

 

10 February 2022

 

RESULTS FOR THE YEAR TO 31 DECEMBER 2021

 

RELX, the global provider of information-based analytics and decision tools,
reports results for 2021.

 

 2021 Highlights

 Ø Revenue £7,244m (£7,110m), underlying growth +7%

 Ø Adjusted operating profit £2,210m (£2,076m), underlying growth +13%

 Ø Adjusted profit before tax £2,077m (£1,916m), constant currency growth
 +15%

 Ø Reported operating profit £1,884m (£1,525m)

 Ø Reported profit before tax £1,797m (£1,483m)

 Ø Adjusted EPS 87.6p (80.1p), constant currency growth +17%

 Ø Reported EPS 76.3p (63.5p)

 Ø Net debt/EBITDA 2.4x; adjusted cash flow conversion 101%

 Ø Proposed full year dividend 49.8p (47.0p) +6%

 2022 Outlook

 Ø Following the improved performance in 2021 across the company, we expect
 2022 full year underlying growth rates in revenue and adjusted operating
 profit, as well as constant currency growth in adjusted earnings per share, to
 remain above historical trends.

 Ø We are announcing our intention to deploy a total of £500m on share
 buybacks in 2022.

 

Chief Executive Officer, Erik Engstrom, commented:

 

"RELX delivered strong underlying revenue and profit growth in 2021. We
believe that this improved growth trajectory is a reflection of our ongoing
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."

 

"We also continued to build on our strong corporate responsibility performance
during the year, further improving on our key internal metrics and extending
the scope of our unique contributions. This was again recognised in the high
ESG ratings ascribed to us by a number of external agencies."

 

"In recognition of the strong financial performance we are proposing a +6%
increase in the full year dividend to 49.8p (47.0p)."

 

Operating and financial review

 

Revenue £7,244m (£7,110m); underlying growth +7%: Electronic revenue,
representing 86% of the total, grew +6%, driven by further development of
analytics and decision tools.

 

Adjusted operating profit £2,210m (£2,076m); underlying growth +13%:
Continued process innovation kept cost growth below revenue growth, driving
strong underlying growth in adjusted operating profit, and resulting in an
improvement in adjusted operating margin to 30.5% (29.2%). Adjusted operating
profit includes a £35m one-off charge relating to reductions in our corporate
real estate footprint.

 

Reported operating profit £1,884m (£1,525m): Reported operating profit
includes amortisation of acquired intangible assets of £298m (£376m) and
portfolio related costs of £21m (credit of £12m).  Exceptional costs were
nil (£183m).

 

Adjusted profit before tax £2,077m (£1,916m); constant currency growth +15%:
Adjusted profit before tax benefited from lower adjusted net interest expense
of £133m (£160m), reflecting both lower average net borrowings and lower
interest rates.

 

Reported profit before tax £1,797m (£1,483m): Reported profit before tax
includes disposal net gains of £55m (£130m). Reported net interest expense
was £142m (£172m).

 

Tax: The adjusted tax charge was £384m (£373m). The adjusted effective tax
rate was 18.5% (19.5%), with both years benefitting from non-recurring tax
credits. The reported tax charge was £326m (£275m).

 

Adjusted EPS 87.6p (80.1p) +9%; constant currency growth +17%

 

Reported EPS 76.3p (63.5p) +20%

 

Dividend: We are proposing a +6% increase in the full year dividend to 49.8p
(47.0p). Dividend cover, based on adjusted earnings per share, is 1.8x (1.7x).

 

Net debt/EBITDA 2.4x (3.3x) including pensions: Net debt, including leases,
was £6.0bn (£6.9bn) at 31 December 2021. Excluding pensions, net debt/EBITDA
was 2.3x (3.0x). Adjusted cash flow conversion was 101% (97%).

 

Portfolio development: In 2021 we completed twelve small acquisitions for a
total consideration of £255m, and disposed of five small assets for a total
consideration of £22m.

 

Share buybacks: No share buybacks were made in 2021. In 2022 we intend to
deploy £500m on share buybacks reflecting our strong financial position and
cash flow profile.

 

Environmental, social and governance (ESG) recognition: In 2021 RELX achieved
a AAA MSCI ESG rating for a sixth consecutive year; moved up to first in its
industry sector in Sustainalytics ESG rankings; and maintained its number four
ranking in the Responsibility100 Index, which measures FTSE 100 companies
against the UN Sustainable Development Goals. RELX continues to be one of 38
LEAD companies of the UN Global Compact among approximately 12,000 business
signatories.

 

RELX FINANCIAL SUMMARY

 

                                Year ended 31 December
                                2021   2020   Change  Change at constant currencies  Underlying Growth

£m

                                       £m
 Revenue                        7,244  7,110  +2%     +8%                            +7%
 Adjusted operating profit      2,210  2,076  +6%     +13%                           +13%
 Adjusted operating margin      30.5%  29.2%
 Reported operating profit      1,884  1,525  +24%
 Adjusted net interest expense  (133)  (160)
 Adjusted profit before tax     2,077  1,916  +8%     +15%
 Adjusted tax                   (384)  (373)
 Adjusted net profit            1,689  1,543  +9%     +17%
 Reported net profit            1,471  1,224  +20%
 Reported net margin            20.3%  17.2%
 Adjusted earnings per share    87.6p  80.1p  +9%     +17%
 Reported earnings per share    76.3p  63.5p  +20%
 Net debt                       6,017  6,898
 Ordinary dividend per share    49.8p  47.0p  +6%

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. In 2020, we also excluded exceptional costs in the Exhibitions
business.  Reconciliations between the reported and adjusted figures are set
out on page 31. Underlying growth rates are calculated at constant currencies,
excluding the results of acquisitions until twelve months after purchase, and
excluding the results of disposals and assets held for sale. Underlying
revenue growth rates also exclude exhibition cycling. Constant currency growth
rates are based on 2020 full-year average and hedge exchange rates.

 

 ENQUIRIES:  Colin Tennant (Investors)  Paul Abrahams (Media)

             +44 (0)20 7166 5751        +44 (0)20 7166 5724

 

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", "could", "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 interpretations affecting RELX intellectual property rights and internet
communications; regulatory and other changes regarding the collection,
transfer or use of third‐party content and data; changes in the payment
model for RELX products; demand for RELX products and services; competitive
factors in the industries in which RELX operates; inability to realise the
future anticipated benefits of acquisitions; significant failure or
interruption of RELX systems; exhibitors' and attendees' ability and desire to
attend face‐to‐face events and availability of event venues; changes in
economic cycles, severe weather events, natural disasters and terrorism;
compromises of RELX cyber security systems or other unauthorised access to our
databases; failure of third parties to whom RELX has outsourced business
activities; inability to retain high-quality employees and management;
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 more
than 180 countries and has offices in about 40 countries. It employs more than
33,000 people over 40% of whom 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 £45bn/€53bn/$61bn.

 

The Annual Report and Financial Statements 2021 are expected to be available on the RELX website at www.relx.com from 17
February 2022. Copies of the Annual Report and Financial Statements 2021 are expected to be posted to shareholders of RELX
PLC on 4 March 2022. Copies of the 2021 Results Announcement are available to the public on the RELX website and from:

 

RELX PLC

1-3 Strand

London WC2N 5JR

United Kingdom

 

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