REG - RELX PLC - RELX 2024 INTERIM RESULTS

RelxAnnouncement

25/07/2024 07:00

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RNS Number : 7387X  RELX PLC  25 July 2024

25 July 2024

RESULTS FOR THE SIX MONTHS TO 30 JUNE 2024

RELX, the global provider of information-based analytics and decision tools,
reports results for the first half of 2024 and reaffirms the full year
outlook.

First half highlights

Ø Revenue £4,641m (£4,499m), underlying growth +7%

Ø Adjusted operating profit £1,583m (£1,486m), underlying growth +10%

Ø Adjusted EPS 59.5p (56.2p), constant currency growth +10%

Ø Reported operating profit £1,431m (£1,308m)

Ø Reported EPS 52.6p (46.0p)

Ø Interim dividend 18.2p (17.0p) +7%

Ø Net debt/EBITDA 2.0x; adjusted cash flow conversion 95%

Ø Completed two acquisitions for a total consideration of £61m

Ø Completed £700m of the previously announced £1,000m share buyback

 

Full year outlook

Ø We continue to see positive momentum across the group, and we expect
another year of strong underlying growth in revenue and adjusted operating
profit, as well as strong growth in adjusted earnings per share on a constant
currency basis.

Chief Executive Officer, Erik Engstrom, commented:

"RELX delivered strong revenue and profit growth in the first half of 2024.
Our improving long-term growth trajectory continues to be driven by the
ongoing shift in business mix towards higher growth analytics and decision
tools that deliver enhanced value to our customers across market segments."

"We develop and deploy these tools across the company by leveraging deep
customer understanding to combine leading content and data sets with powerful
artificial intelligence and other technologies. This has been a key driver of
the evolution of our business for well over a decade, and will remain a key
driver of customer value and growth in our business for many years to come."

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

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

 

 

 

Operating and financial review

Revenue £4,641m (£4,499m); underlying growth +7%: Electronic revenue,
representing 84% of the total, also grew +7%, with the strong growth in
face-to-face activity offsetting the print decline.

Adjusted operating profit £1,583m (£1,486m); underlying growth +10%: Our
strategy of driving continuous process innovation to manage cost growth below
revenue growth led to an improvement in the group adjusted operating margin to
34.1% (33.0%).

Reported operating profit £1,431m (£1,308m): Reported operating profit
includes amortisation of acquired intangible assets of £131m (£143m).

Adjusted profit before tax £1,450m (£1,350m): The adjusted net interest
expense was £133m (£136m). The average interest rate on gross debt was 4.1%
(4.2%).

Reported profit before tax £1,295m (£1,137m).

Tax: The adjusted tax charge was £334m (£284m). The adjusted effective tax
rate was 23.0% (21.0%), with the prior period benefitting from non-recurring
tax credits. The reported tax charge was £309m (£264m).

Adjusted EPS 59.5p (56.2p); constant currency growth +10%.

Reported EPS 52.6p (46.0p).

Dividend: We are declaring an interim dividend of 18.2p (17.0p), an increase
of +7%. The interim dividend will be paid on 5 September 2024, with an
ex-dividend date of 1 August 2024 and a record date of 2 August 2024.
Shareholders on the Register of Members or holding shares in CREST will
automatically receive their dividends in Pounds Sterling (but may elect to
receive their dividends in Euro). Shareholders who hold shares through
Euroclear Nederland will automatically receive their dividend in Euro (but may
elect to receive their dividend in Pounds Sterling). The closing date for
currency elections is 16 August 2024 (by 5pm London time). Dividend
Reinvestment Plans are available for shares trading on the London Stock
Exchange and Euronext Amsterdam. The closing date for elections in relation to
participation in the Company's Dividend Reinvestment Plans is also 16 August
2024 (by 5pm London time).

Portfolio development: In the first half of 2024 we completed two small
acquisitions, for a total consideration of £61m, and three small disposals
for a total consideration of £52m.

Net debt/EBITDA 2.0x (2.2x): Net debt at 30 June 2024 was £6,973m (£6,883m).
Adjusted cash flow conversion was 95% (95%).

Share buybacks: Of the previously announced £1,000m share buyback, £700m was
completed in the first half. A further £50m has been completed since 1 July,
and the remaining £250m will be deployed before the end of the year.

Corporate responsibility and ESG recognition: RELX currently has an AAA MSCI
ESG rating which it has held for nine consecutive years, is ranked second in
our sector by Sustainalytics, and has been a constituent of the Bloomberg
Gender Equality Index for six consecutive years.

 

RELX FINANCIAL SUMMARY

                                                    Six months ended 30 June
 Adjusted figures                                   2023     2024     Change  Change at constant currency  Change underlying

£m
£m
 Revenue                                             4,499    4,641   +3%     +7%                          +7%
 EBITDA                                              1,736    1,841
 Operating profit                                    1,486    1,583   +7%     +10%                         +10%
 Operating margin                                   33.0%    34.1%
 Net interest expense                                (136)    (133)
 Profit before tax                                   1,350    1,450
 Tax charge                                          (284)    (334)
 Net profit attributable to shareholders             1,067    1,115
 Cash flow                                           1,408    1,498
 Cash flow conversion                               95%      95%
 Earnings per share                                 56.2p    59.5p    +6%     +10%

 Dividend                                           2023     2024     Change
 Ordinary dividend per share                        17.0p    18.2p    +7%

 Reported figures                                   2023     2024     Change

£m
£m
 Revenue                                             4,499    4,641   +3%
 Operating profit                                    1,308    1,431   +9%
 Profit before tax                                   1,137    1,295
 Net profit attributable to shareholders             874      985
 Net margin                                         19.4%    21.2%
 Net debt                                            6,883    6,973
 Earnings per share                                 46.0p    52.6p    +14%

 

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. Underlying growth rates are calculated at constant currency,
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, and timing effects.
Constant currency growth rates are based on 2023 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", "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:
regulatory and other changes regarding the collection or use of personal data;
changes in law and legal interpretation affecting our intellectual property
rights and internet communications; current and future geopolitical, economic
and market conditions; changes in the payment model for our scientific,
technical and medical research products; competitive factors in the industries
in which we operate and demand for our products and services; our inability to
realise the future anticipated benefits of acquisitions; compromises of our
cybersecurity systems or other unauthorised access to our databases; changes
in economic cycles, communicable disease epidemics or pandemics, severe
weather events, natural disasters and terrorism; failure of third parties to
whom we have outsourced business activities; significant failure or
interruption of our systems; our inability to retain high-quality employees
and management; changes in tax laws and uncertainty in their application;
exchange rate fluctuations; adverse market conditions or downgrades to the
credit ratings of our debt; changes in the market values of defined benefit
pension scheme assets and in the market related assumptions used to value
scheme liabilities; breaches of generally accepted ethical business standards
or applicable laws; 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. RELX serves customers in more than
180 countries and has offices in about 40 countries. It employs more than
36,000 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 £65bn/€77bn/$84bn.

RELX PLC

1‑3 Strand

London WC2N 5JR

United Kingdom

 

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