Reed Elsevier has announced that it is on track to deliver on its target of 5% organic revenue growth for the year, although its eduction division has suffered from underperformance and a weak textbook market.
In an update on trading, Reed Elsevier said that it is performing well in the Science and Health markets, with good growth in online product sales, and improving operating margins with good revenue growth and further cost efficiency.
The company’s LexisNexis division is also performing well, with underlying operating margins improving with the growth in the business and operational gearing.
In addition, Elsevier says that its magazine and information business is showing overall solid growth with strongly growing sales outpacing the decline in print.
However, the educational division, says Reed Elsevier, is expected to see overall adjusted operating margins down approximately 4 percentage points year on year.
Sir Crispin Davis, Chief Executive Officer, said: “The business is performing well despite the issues in Assessment, with good revenue growth and underlying margin improvement across the rest of the business. Of long term significance is the move to online information and solutions in our markets, which is profound and opening up real opportunities for us to add more value to our customers and reach new ones.
“Combining authoritative content with technology is driving superior outcomes for the research scientist, medical practitioner, lawyer, teacher and business professional. With the growing success of our strategy and a favourable market outlook, the prospects for Reed Elsevier look good.”
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