REG - RELX PLC - RELX 2022 RESULTS

RelxAnnouncement

16/02/2023 07:00

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RNS Number : 0792Q  RELX PLC  16 February 2023

16 February 2023

 

RESULTS FOR THE YEAR TO 31 DECEMBER 2022

 

RELX, the global provider of information-based analytics and decision tools,
reports results for 2022.

 

 2022 highlights

 Ø Revenue £8,553m (£7,244m), underlying growth +9%

 Ø Adjusted operating profit £2,683m (£2,210m), underlying growth +15%

 Ø Adjusted profit before tax £2,489m (£2,077m), constant currency growth
 +13%

 Ø Reported operating profit £2,323m (£1,884m)

 Ø Reported profit before tax £2,113m (£1,797m)

 Ø Adjusted EPS 102.2p (87.6p), constant currency growth +10%

 Ø Reported EPS 85.2p (76.3p)

 Ø Proposed full year dividend 54.6p (49.8p) +10%

 Ø Net debt/EBITDA 2.1x; adjusted cash flow conversion 101%

 Ø Completed nine acquisitions for a total consideration of £443m

 Ø Completed £500m share buyback

 2023 outlook

 Ø Momentum remains strong across the group, and we expect underlying growth
 rates in revenue and adjusted operating profit to remain above historical
 trends, driving another year of 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 2022. The improving
long-term growth trajectory is being driven by the ongoing shift in our
business mix towards higher growth analytics and decision tools that deliver
enhanced value to our customers across market segments."

 

"We also performed well on our corporate responsibility priorities during the
year, making good progress with our unique contributions to society, further
improving our key performance metrics, and again being recognised by a number
of external agencies through high ESG ratings."

 

"In recognition of our strong cash flow and financial position we are
proposing a 10% increase in the full year dividend to 54.6p (49.8p), and we
intend to deploy a total of £800m on share buybacks in 2023."

 

Operating and financial review

 

Revenue £8,553m (£7,244m); underlying growth +9%: Electronic revenue,
representing 83% of the total, grew +6%, with a further recovery in
face-to-face activity and a reducing print drag bringing the overall group
underlying revenue growth rate to +9%.

 

Adjusted operating profit £2,683m (£2,210m); underlying growth +15%: Our
strategy of driving continuous process innovation to manage cost growth below
revenue growth, together with the recovery in face-to-face activity, resulted
in an improvement in the group adjusted operating margin to 31.4% (30.5%).

 

Reported operating profit £2,323m (£1,884m): Improvement driven by higher
adjusted operating profit.

 

Adjusted profit before tax £2,489m (£2,077m); constant currency growth +13%:
the adjusted net interest expense increased to £194m (£133m). The average
interest rate on gross debt was 2.9% (2.0%).

 

Reported profit before tax £2,113m (£1,797m): Improvement driven by higher
adjusted profit before tax.

 

Tax: The adjusted tax charge was £530m (£384m). The adjusted effective tax
rate was 21.3% (18.5%), with the prior year benefitting from non-recurring tax
credits. The reported tax charge was £481m (£326m).

 

Adjusted EPS 102.2p (87.6p) +17%; constant currency growth +10%.

 

Reported EPS 85.2p (76.3p) +12%.

 

Dividend: We are proposing a full year dividend of 54.6p (49.8p), an increase
of +10%. Dividend cover, based on adjusted earnings per share, is 1.9x (1.8x).

 

Net debt/EBITDA 2.1x (2.4x): Net debt at 31 December 2022 was £6.6bn
(£6.0bn), with the increase due to currency movements.  Adjusted cash flow
conversion was 101% (101%).

 

Portfolio development: In 2022 we completed nine small acquisitions for a
total consideration of £443m.

 

Share buybacks: We deployed £500m on share buybacks in 2022. In 2023 we
intend to deploy a total of £800m, of which £150m has already been
completed.

 

Environmental, social and governance (ESG) recognition: In 2022, RELX achieved
a AAA MSCI ESG rating for a seventh consecutive year; maintained its first
place sector ranking on ESG by Sustainalytics; remained fourth in the
Responsibility100 Index, which measures FTSE 100 companies against the UN
Sustainable Development Goals; and was a constituent of the Bloomberg Gender
Equality Index for a fourth consecutive year.

 

RELX FINANCIAL SUMMARY

 

                                          Year ended 31 December
 Adjusted figures                         2021                         2022    Change  Change at constant currencies  Change underlying

£m

                                                                       £m
 Revenue                                  7,244                        8,553   +18%    +11%                           +9%
 Operating profit                         2,210                        2,683   +21%    +14%                           +15%
 Operating margin                         30.5%                        31.4%
 Net interest expense                     (133)                        (194)
 Profit before tax                        2,077                        2,489   +20%    +13%
 Tax charge                               (384)                        (530)
 Net profit attributable to shareholders  1,689                        1,961   +16%    +10%
 Cash flow                                2,230                        2,709   +21%    +13%
 Cash flow conversion                     101%                         101%
 Return on invested capital               11.9%                        12.5%
 Earnings per share                       87.6p                        102.2p  +17%    +10%
 Dividend
 Ordinary dividend per share              49.8p                        54.6p   +10%

 Reported figures                                               2021   2022    Change

£m

                                                                       £m
 Revenue                                                        7,244  8,553   +18%
 Operating profit                                               1,884  2,323   +23%
 Profit before tax                                              1,797  2,113   +18%
 Net profit attributable to shareholders                        1,471  1,634   +11%
 Net margin                                                     20.3%  19.1%
 Net debt                                                       6,017  6,604
 Earnings per share                                             76.3p  85.2p   +12%

 

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 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 2021 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:
compromises of RELX cyber security systems or other unauthorised access to our
databases; regulatory and other changes regarding the collection, transfer or
use of third‐party content and data; changes in law and legal
interpretations affecting RELX intellectual property rights and internet
communications; current and future geopolitical, economic and market
conditions; changes in economic cycles, communicable disease epidemics or
pandemics, severe weather events, natural disasters and terrorism; changes in
tax laws and uncertainty in their application; changes in the payment model
for RELX products; competitive factors in the industries in which RELX
operates and demand for RELX products and services; failure of third parties
to whom RELX has outsourced business activities; breaches of generally
accepted ethical business standards or applicable laws; significant failure or
interruption of RELX systems; inability to realise the future anticipated
benefits of acquisitions; inability to retain high-quality employees and
management; 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. RELX 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 £47bn/€53bn/$56bn.

 

The Annual Report 2022 is expected to be available on the RELX website at
www.relx.com from 23 February 2023. Copies of the Annual Report 2022 are
expected to be posted to shareholders of RELX PLC on 10 March 2023. Copies of
the 2022 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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