16 February 2023
RESULTS FOR THE YEAR TO 31 DECEMBER 2022
RELX, the global provider of information-based analytics and decision tools, reports results for 2022.
| 2022 highlightsØ Revenue £8,553m (£7,244m), underlying growth +9%Ø Adjusted operating profit £2,683m (£2,210m), underlying growth +15%Ø Adjusted profit before tax £2,489m (£2,077m), constant currency growth +13%Ø Reported operating profit £2,323m (£1,884m)Ø Reported profit before tax £2,113m (£1,797m)Ø Adjusted EPS 102.2p (87.6p), constant currency growth +10%Ø Reported EPS 85.2p (76.3p)Ø Proposed full year dividend 54.6p (49.8p) +10%Ø Net debt/EBITDA 2.1x; adjusted cash flow conversion 101%Ø Completed nine acquisitions for a total consideration of £443mØ Completed £500m share buyback2023 outlookØ Momentum remains strong across the group, and we expect underlying growth rates in revenue and adjusted operating profit to remain above historical trends, driving another year of 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 2022. The improving long-term growth trajectory is being driven by the ongoing shift in our business mix towards higher growth analytics and decision tools that deliver enhanced value to our customers across market segments.”
“We also performed well on our corporate responsibility priorities during the year, making good progress with our unique contributions to society, further improving our key performance metrics, and again being recognised by a number of external agencies through high ESG ratings.”
“In recognition of our strong cash flow and financial position we are proposing a 10% increase in the full year dividend to 54.6p (49.8p), and we intend to deploy a total of £800m on share buybacks in 2023.”
Operating and financial review
Revenue £8,553m (£7,244m); underlying growth +9%: Electronic revenue, representing 83% of the total, grew +6%, with a further recovery in face-to-face activity and a reducing print drag bringing the overall group underlying revenue growth rate to +9%.
Adjusted operating profit £2,683m (£2,210m); underlying growth +15%: 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 31.4% (30.5%).
Reported operating profit £2,323m (£1,884m): Improvement driven by higher adjusted operating profit.
Adjusted profit before tax £2,489m (£2,077m); constant currency growth +13%: the adjusted net interest expense increased to £194m (£133m). The average interest rate on gross debt was 2.9% (2.0%).
Reported profit before tax £2,113m (£1,797m): Improvement driven by higher adjusted profit before tax.
Tax: The adjusted tax charge was £530m (£384m). The adjusted effective tax rate was 21.3% (18.5%), with the prior year benefitting from non-recurring tax credits. The reported tax charge was £481m (£326m).
Adjusted EPS 102.2p (87.6p) +17%; constant currency growth +10% .
Reported EPS 85.2p (76.3p) +12% .
Dividend: We are proposing a full year dividend of 54.6p (49.8p), an increase of +10%. Dividend cover, based on adjusted earnings per share, is 1.9x (1.8x).
Net debt/EBITDA 2.1x (2.4x): Net debt at 31 December 2022 was £6.6bn (£6.0bn), with the increase due to currency movements. Adjusted cash flow conversion was 101% (101%).
Portfolio development: In 2022 we completed nine small acquisitions for a total consideration of £443m.
Share buybacks : We deployed £500m on share buybacks in 2022. In 2023 we intend to deploy a total of £800m, of which £150m has already been completed.
Environmental, social and governance (ESG) recognition : In 2022, RELX achieved a AAA MSCI ESG rating for a seventh consecutive year; maintained its first place sector ranking on ESG by Sustainalytics; remained fourth in the Responsibility100 Index, which measures FTSE 100 companies against the UN Sustainable Development Goals; and was a constituent of the Bloomberg Gender Equality Index for a fourth consecutive year.
RELX FINANCIAL SUMMARY
| Year ended 31 December | ||||||
| Adjusted figures | 2021 £m | 2022£m | Change | Change at constant currencies | Change underlying | |
| Revenue | 7,244 | 8,553 | +18% | +11% | +9% | |
| Operating profit | 2,210 | 2,683 | +21 % | +14% | +15% | |
| Operating margin | 30.5% | 31.4% | ||||
| Net interest expense | (133) | (194) | ||||
| Profit before tax | 2,077 | 2,489 | +20 % | +13 % | ||
| Tax charge | (384) | (530) | ||||
| Net profit attributable to shareholders | 1,689 | 1,961 | +16 % | +10% | ||
| Cash flow | 2,230 | 2,709 | +21% | +13% | ||
| Cash flow conversion | 101% | 101% | ||||
| Return on invested capital | 11.9% | 12.5% | ||||
| Earnings per share | 87.6p | 102.2p | +17% | +10% | ||
| Dividend | ||||||
| Ordinary dividend per share | 49.8p | 54.6p | +10% | |||
| Reported figures | 2021 £m | 2022£m | Change | |||
| Revenue | 7,244 | 8,553 | +18% | |||
| Operating profit | 1,884 | 2,323 | +23% | |||
| Profit before tax | 1,797 | 2,113 | +18% | |||
| Net profit attributable to shareholders | 1,471 | 1,634 | +11% | |||
| Net margin | 20.3% | 19.1% | ||||
| Net debt | 6,017 | 6,604 | ||||
| Earnings per share | 76.3p | 85.2p | +12% | |||
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 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 2021 full-year average and hedge exchange rates.
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