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.
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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.
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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).
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
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Year ended 31 December
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Adjusted figures
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2022
£m
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2023
£m
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Change
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Change at constant
currency
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Change underlying
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Revenue
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8,553
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9,161
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+7%
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+7%
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+8%
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EBITDA
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3,174
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3,544
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Operating profit
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2,683
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3,030
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+13%
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+12%
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+13%
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Operating margin
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31.4%
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33.1%
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Net interest expense
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(194)
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(314)
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Profit before tax
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2,489
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2,716
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Tax charge
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(530)
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(553)
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Net profit attributable to
shareholders
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1,961
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2,156
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Cash flow
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2,709
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2,962
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Cash flow conversion
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101%
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98%
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Return on invested
capital
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12.5%
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14.0%
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Earnings per share
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102.2p
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114.0p
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+12%
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+11%
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Dividend
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2022
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2023
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Change
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Ordinary dividend per
share
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54.6p
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58.8p
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+8%
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Reported figures
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2022
£m
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2023
£m
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Change
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Revenue
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8,553
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9,161
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+7%
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Operating profit
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2,323
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2,682
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+15%
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Profit before tax
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2,113
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2,295
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Net profit attributable to
shareholders
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1,634
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1,781
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Net margin
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19.1%
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19.4%
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Net debt
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6,604
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6,446
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Earnings per share
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85.2p
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94.1p
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+10%
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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.
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ENQUIRIES:
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Colin Tennant (Investors)
+44 (0)20 7166 5751
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Paul Abrahams (Media)
+44 (0)20 7166 5724
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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
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
Click on, or paste the following link
into your web browser, to view the associated PDF
document.
http://www.rns-pdf.londonstockexchange.com/rns/1979D_1-2024-2-14.pdf