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 highlightsØ 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 £130mØ Completed £800m share buyback2024 outlookØ 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
| Year ended 31 December | |||||||
| Adjusted figures | 2022 £m | 2023 £m | Change | Change at constant currency | Change underlying | ||
| 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 £m | 2023 £m | Change | ||||
| 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)+44 (0)20 7166 5751 | Paul Abrahams (Media)+44 (0)20 7166 5724 |