RELX plc 2021 Results

10 February 2022

RESULTS FOR THE YEAR TO 31 DECEMBER 2021

RELX, the global provider of information-based analytics and decision tools, reports results for 2021.

Chief Executive Officer, Erik Engstrom, commented:

 “RELX delivered strong underlying revenue and profit growth in 2021. We believe that this improved growth trajectory is a reflection of our ongoing strategy of focusing on the organic development of increasingly sophisticated analytics and decision tools that deliver enhanced value to our customers across market segments. Recent acquisitions, which have supplemented our organic growth strategy, have continued to perform well.

“We also continued to build on our strong corporate responsibility performance during the year, further improving on our key internal metrics and extending the scope of our unique contributions. This was again recognised in the high ESG ratings ascribed to us by a number of external agencies.”

“In recognition of the strong financial performance we are proposing a +6% increase in the full year dividend to 49.8p (47.0p).”

Operating and financial review

Revenue £7,244m (£7,110m); underlying growth +7%: Electronic revenue, representing 86% of the total, grew +6%, driven by further development of analytics and decision tools.

Adjusted operating profit £2,210m (£2,076m); underlying growth +13%: Continued process innovation kept cost growth below revenue growth, driving strong underlying growth in adjusted operating profit, and resulting in an improvement in adjusted operating margin to 30.5% (29.2%). Adjusted operating profit includes a £35m one-off charge relating to reductions in our corporate real estate footprint.

Reported operating profit £1,884 m (£1,525m): Reported operating profit includes amortisation of acquired intangible assets of £298m (£376m) and portfolio related costs of £21m (credit of £12m).  Exceptional costs were nil (£183m).

Adjusted profit before tax £2,077m (£1,916m); constant currency growth +15%: Adjusted profit before tax benefited from lower adjusted net interest expense of £133m (£160m), reflecting both lower average net borrowings and lower interest rates.

Reported profit before tax £1,797m (£1,483m): Reported profit before tax includes disposal net gains of £55m (£130m). Reported net interest expense was £142m (£172m).

Tax: The adjusted tax charge was £384m (£373m). The adjusted effective tax rate was 18.5% (19.5%), with both years benefitting from non-recurring tax credits. The reported tax charge was £326m (£275m).

Adjusted EPS 87.6p (80.1p) +9%; constant currency growth +17%

Reported EPS 76.3p (63.5p) +20%

Dividend: We are proposing a +6% increase in the full year dividend to 49.8p (47.0p). Dividend cover, based on adjusted earnings per share, is 1.8x (1.7x).

Net debt/EBITDA 2.4x (3.3x) including pensions: Net debt, including leases, was £6.0bn (£6.9bn) at 31 December 2021. Excluding pensions, net debt/EBITDA was 2.3x ( 3.0x). Adjusted cash flow conversion was 101% (97%).

Portfolio development: In 2021 we completed twelve small acquisitions for a total consideration of £255m, and disposed of five small assets for a total consideration of £22m.

Share buybacks : No share buybacks were made in 2021. In 2022 we intend to deploy £500m on share buybacks reflecting our strong financial position and cash flow profile.

Environmental, social and governance (ESG) recognition: In 2021 RELX achieved a AAA MSCI ESG rating for a sixth consecutive year; moved up to first in its industry sector in Sustainalytics ESG rankings; and maintained its number four ranking in the Responsibility100 Index, which measures FTSE 100 companies against the UN Sustainable Development Goals. RELX continues to be one of 38 LEAD companies of the UN Global Compact among approximately 12,000 business signatories.

RELX FINANCIAL SUMMARY

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. In 2020, we also excluded exceptional costs in the Exhibitions business.  Reconciliations between the reported and adjusted figures are set out on page 31 . 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 2020 full-year average and hedge exchange rates.