REG - RELX PLC - RELX 2023 RESULTS

RelxAnnouncement

15/02/2024 07:00

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RNS Number : 1979D  RELX PLC  15 February 2024

15 February 2024

RESULTS FOR THE YEAR TO 31 DECEMBER 2023

RELX, the global provider of information-based analytics and decision tools,
reports results for 2023.

 2023 highlights

 Ø Revenue £9,161m (£8,553m), underlying growth +8%

 Ø Adjusted operating profit £3,030m (£2,683m), underlying growth +13%

 Ø Adjusted EPS 114.0p (102.2p), constant currency growth +11%

 Ø Reported operating profit £2,682m (£2,323m)

 Ø Reported EPS 94.1p (85.2p)

 Ø Proposed full year dividend 58.8p (54.6p) +8%

 Ø Net debt/EBITDA 2.0x; adjusted cash flow conversion 98%

 Ø Completed six acquisitions for a total consideration of £130m

 Ø Completed £800m share buyback

 2024 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 2023, driven by the
ongoing shift in business mix towards higher growth information based
analytics and decision tools that deliver enhanced value to our customers
across market segments."

"We have been able to develop and deploy these tools across the company for
well over a decade by leveraging deep customer understanding to combine
leading content and data sets with powerful technologies. We are confident
that our ability to leverage artificial intelligence and other technologies,
as they evolve, will continue to be an important driver of customer value and
growth in our business for many years to come."

"In recognition of our strong performance and outlook for the company we are
proposing an 8% increase in the full year dividend to 58.8p (54.6p)."

 

Operating and financial review

Revenue £9,161m (£8,553m); underlying growth +8%: Electronic revenue,
representing 83% of the total, grew +7%, with the strong growth in
face-to-face activity more than offsetting the print decline, bringing the
overall group underlying revenue growth rate to +8%.

Adjusted operating profit £3,030m (£2,683m); underlying growth +13%: 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 33.1% (31.4%).

Reported operating profit £2,682m (£2,323m): Reported operating profit
includes amortisation of acquired intangible assets of £280m (£296m).

Adjusted profit before tax £2,716m (£2,489m): The adjusted net interest
expense increased to £314m (£194m). This includes a non-recurring early bond
redemption charge of £26m, bringing the average effective net interest rate
on gross debt to 4.6%, or 4.2% excluding the early bond redemption charge.

Reported profit before tax £2,295m (£2,113m): Reported net interest was
£315m (£201m).

Tax: The adjusted tax charge was £553m (£530m). The adjusted effective tax
rate was 20.4% (21.3%), with the current period benefitting from non-recurring
tax credits. The reported tax charge was £507m (£481m).

Adjusted EPS 114.0p (102.2p) +12%; constant currency growth +11%.

Reported EPS 94.1p (85.2p).

Dividend: We are proposing a full year dividend of 58.8p (54.6p), an increase
of +8%. The final dividend proposed by the Board is 41.8p per share (subject
to shareholder approval at the 2024 AGM). If approved, the final dividend will
be paid on 13 June 2024, with an ex-dividend date of 2 May 2024 and a record
date of 3 May 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 20 May 2024. Dividend Reinvestment Plans are
available for shares trading on London Stock Exchange and Euronext Amsterdam
(further information is available at www.relx.com
(https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.relx.com%2F&data=05%7C02%7CLucy.Marks%40relx.com%7Ceab8c44383854edb66d608dc29609252%7C9274ee3f94254109a27f9fb15c10675d%7C0%7C0%7C638430741961022289%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=ldT0vA9F01PkW%2BP%2B3C6enZCZMdxYjvc31QKk6UuH0Ho%3D&reserved=0)
).

Portfolio development: In 2023 we completed six small acquisitions, for a
total consideration of £130m, and one small disposal.

Net debt/EBITDA 2.0x (2.1x): Net debt at 31 December 2023 was £6,446m
(£6,604m). EBITDA was £3,544m (£3,174m). Adjusted cash flow conversion was
98% (101%).

Share buybacks: We deployed £800m on share buybacks in 2023. In recognition
of our strong financial position and cash flow we intend to deploy a total of
£1,000m on share buybacks in 2024, of which £150m has already been
completed.

Corporate responsibility and environmental, social and governance (ESG): We
performed well on our corporate responsibility priorities in 2023, on our
unique contributions to society, and on our key metrics. Our performance was
again recognised by external agencies: RELX achieved a AAA MSCI ESG rating for
an eighth consecutive year, ranked second in our sector by Sustainalytics,
maintained fifth place in the Responsibility100 Index, and was a constituent
of the Bloomberg Gender Equality Index for a fifth consecutive year.

RELX FINANCIAL SUMMARY

                                                    Year ended 31 December
 Adjusted figures                                   2022     2023     Change  Change at constant currency  Change underlying

£m
£m
 Revenue                                             8,553    9,161   +7%     +7%                          +8%
 EBITDA                                              3,174    3,544
 Operating profit                                    2,683    3,030   +13%    +12%                         +13%
 Operating margin                                   31.4%    33.1%
 Net interest expense                                (194)    (314)
 Profit before tax                                   2,489    2,716
 Tax charge                                          (530)    (553)
 Net profit attributable to shareholders             1,961    2,156
 Cash flow                                           2,709    2,962
 Cash flow conversion                               101%     98%
 Return on invested capital                         12.5%    14.0%
 Earnings per share                                 102.2p   114.0p   +12%    +11%

 Dividend                                           2022     2023     Change
 Ordinary dividend per share                        54.6p    58.8p    +8%

 Reported figures                                   2022     2023     Change

£m
£m
 Revenue                                             8,553    9,161   +7%
 Operating profit                                    2,323    2,682   +15%
 Profit before tax                                   2,113    2,295
 Net profit attributable to shareholders             1,634    1,781
 Net margin                                         19.1%    19.4%
 Net debt                                            6,604    6,446
 Earnings per share                                 85.2p    94.1p    +10%

 

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 2022 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:
regulatory and other changes regarding the collection or use of personal 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 the payment model for RELX scientific,
technical and medical research products; competitive factors in the industries
in which RELX operates and demand for RELX products and services; inability to
realise the future anticipated benefits of acquisitions; comprises of RELX
cyber security systems or other unauthorized 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 RELX has outsourced business activities; significant failure or
interruption of RELX systems; inability to retain high-quality employees and
management; changes in tax laws and uncertainty in their application; exchange
rate fluctuations; adverse markets 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 £63bn/€73bn/$79bn.

The Annual Report 2023 is expected to be available on the RELX website at
www.relx.com (http://www.relx.com) from 22 February 2024. Copies of the Annual
Report 2023 are expected to be posted to shareholders of RELX PLC on 8 March
2024. Copies of the 2023 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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