Reed Elsevier records hike in profits and revenues

Publishing and events group Reed Elsevier reported a rise in revenues for 2012, driven by volume growth, new products and expansion in lucrative markets.

Revenue came to £6.1bn for the year to December 31st, up 2.0% from £6.0bn in 2011. Adjusted pre-tax profit grew 8.0% to £1.4bn for the period while adjusted operating profit jumped 5.0% to £1.7bn.

Reed also reduced its net debt by £0.3bn to £3.1bn.

During the year the group acquired small content and data assets including EDIWatch, Atira and Alcantara Machado, the leading exhibitions organiser in Brazil.

The company recommended an ordinary dividend of 23.0p per share, a 7.0% increase from 21.5p the previous year.

"In 2012 we made good progress on our strategy to systematically transform our business into a professional information solutions provider that combines content and data with analytics and technology in global platforms," said Chief Executive Officer Erik Engstrom.

"We continued to do this primarily through organic development, with acquisitions limited to small content and data assets across markets and assets in high growth geographies.

"We also accelerated the evolution of our portfolio by disposing of businesses that no longer fit our strategy, using the proceeds to buy back shares. As a result of these actions we are continuing to improve the quality of our earnings, to deliver more predictable revenues, a higher growth profile, and improving returns."

He also said while the outlook for the the macro environment and its impact on customer markets is mixed, the company has entered 2013 with positive momentum and expects another year of underlying revenue, profits and earnings growth.

Shares rose 1.57% to 710.00p at 08:09.

RD