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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. |
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 |
2023 |
Change |
Change at constant currency |
Change underlying |
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Revenue |
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8,553 |
9,161 |
+7% |
+7% |
+8% |
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EBITDA |
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3,174 |
3,544 |
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Operating profit |
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2,683 |
3,030 |
+13% |
+12% |
+13% |
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Operating margin |
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31.4% |
33.1% |
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Net interest expense |
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(194) |
(314) |
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Profit before tax |
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2,489 |
2,716 |
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Tax charge |
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(530) |
(553) |
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Net profit attributable to shareholders |
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1,961 |
2,156 |
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Cash flow |
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2,709 |
2,962 |
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Cash flow conversion |
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101% |
98% |
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Return on invested capital |
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12.5% |
14.0% |
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Earnings per share |
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102.2p |
114.0p |
+12% |
+11% |
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Dividend |
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2022 |
2023 |
Change |
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Ordinary dividend per share |
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54.6p |
58.8p |
+8% |
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Reported figures |
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2022 |
2023 |
Change |
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Revenue |
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8,553 |
9,161 |
+7% |
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Operating profit |
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2,323 |
2,682 |
+15% |
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Profit before tax |
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2,113 |
2,295 |
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Net profit attributable to shareholders |
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1,634 |
1,781 |
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Net margin |
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19.1% |
19.4% |
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Net debt |
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6,604 |
6,446 |
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Earnings per share |
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85.2p |
94.1p |
+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 |
Paul Abrahams (Media) +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 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