REG - RELX PLC - RELX 2022 Interim Results

RelxAnnouncement

28/07/2022 07:17

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RNS Number : 9975T  RELX PLC  28 July 2022

 

28 July 2022

 

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2022

 

RELX, the global provider of information-based analytics and decision tools,
reports results for the first half of 2022 and reaffirms the full year
outlook.

 

 First half highlights

 Ø Revenue £3,969m (£3,394m), constant currency growth +13%

 Ø Adjusted operating profit £1,239m (£1,023m), constant currency growth
 +16%

 Ø Adjusted profit before tax £1,163m (£953m), constant currency growth +17%

 Ø Adjusted EPS 47.2p (40.0p), constant currency growth +14%

 Ø Reported operating profit £1,081m (£860m)

 Ø Reported profit before tax £998m (£825m)

 Ø Reported EPS 39.5p (34.5p)

 Ø Interim dividend 15.7p (14.3p) +10%

 Ø Net debt/EBITDA 2.3x; adjusted cash flow conversion 103%

 Ø Completed six acquisitions for a total consideration of £342m

 Ø Completed £300m of the previously announced £500m share buyback

 Full year outlook

 Ø As we enter the second half, momentum remains strong across the group, and
 we continue to expect 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.

 

Chief Executive Officer, Erik Engstrom, commented:

 

"RELX continued to deliver strong revenue and profit growth throughout the
first half of 2022. We believe that this 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, continue to perform well."

 

"In recognition of the strong financial performance we have announced a +10%
increase in the interim dividend to 15.7p."

 

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

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

 

 

Operating and financial review

 

Revenue £3,969m (£3,394m); constant currency growth +13%: The strong growth
rate reflects good growth in electronic revenue, representing 85% of the
total, supported by further development of analytics and decision tools, and a
recovery in face-to-face revenue, representing 9% of the total, partially
offset by continued print declines.

 

Adjusted operating profit £1,239m (£1,023m); constant currency growth +16%:
Continuing process innovation is keeping cost growth below revenue growth
which, together with the recovery in face-to-face, resulted in an improvement
in the group adjusted operating margin to 31.2% (30.1%).

 

Reported operating profit £1,081m (£860m): Reported operating profit
includes amortisation of acquired intangible assets of £143m (£143m) and
acquisition related costs of £14m (£16m).

 

Adjusted profit before tax £1,163m (£953m); constant currency growth +17%:
the adjusted net interest expense increased to £76m (£70m), reflecting
currency movements and higher interest rates.

 

Reported profit before tax £998m (£825m)

 

Tax: The adjusted tax charge was £255m (£185m). The adjusted effective tax
rate was 21.9% (19.4%), with the prior period benefitting from non-recurring
tax credits. The reported tax charge was £238m (£164m).

 

Adjusted EPS 47.2p (40.0p); constant currency growth +14%

 

Reported EPS 39.5p (34.5p)

 

Dividend: We are declaring an interim dividend of 15.7p (14.3p), an increase
of +10%.

 

Net debt/EBITDA 2.3x (2.8x): Net debt at 30 June 2022 was £6.9bn (£6.3bn),
with the increase due to exchange rate movements. Adjusted cash flow
conversion was 103% (112%).

 

Portfolio development: In H1 2022 we completed six acquisitions of content and
data analytics assets for a total consideration of £342m.

 

Share buybacks: Of the previously announced £500m share buyback, £300m was
completed in the first half. A further £50m has been completed since 1 July,
and the remaining £150m will be deployed before the end of the year.

 

Environmental, social and governance (ESG) recognition: In 2022 RELX achieved
a AAA MSCI ESG rating for a seventh consecutive year; maintained its first
place ESG sector ranking by Sustainalytics; and remains fourth in the
Responsibility100 Index, which measures FTSE 100 companies against the UN
Sustainable Development Goals. RELX is one of 37 LEAD companies of the UN
Global Compact among approximately 14,000+ business signatories.

 

RELX FINANCIAL SUMMARY

 

                                Six months ended 30 June
                                2022     2021     Change   Change at constant currencies

£m
£m
 Revenue                        3,969    3,394    +17%     +13%
 Adjusted operating profit      1,239    1,023    +21%     +16%
 Adjusted operating margin      31.2%    30.1%
 Reported operating profit      1,081    860      +26%
 Adjusted net interest expense  (76)     (70)
 Adjusted profit before tax     1,163    953      +22%     +17%
 Adjusted tax                   (255)    (185)
 Adjusted net profit            909      771      +18%     +13%
 Reported net profit            761      664      +15%
 Reported net margin            19.2%    19.6%
 Adjusted earnings per share    47.2p    40.0p    +18%     +14%
 Reported earnings per share    39.5p    34.5p    +14%
 Net debt                       6,932    6,316
 Ordinary dividend per share    15.7p    14.3p    +10%

 

RELX uses adjusted figures as alternative 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. Reconciliations between the reported and adjusted figures are
set out on page 30. Constant currency growth rates are based on 2021 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:
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/€54bn/$55bn.

 

 RELX PLC

 1-3 Strand

 London WC2N 5JR

 United Kingdom

 

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