Reed On Target As Profits Rise In H1
Reed Elsevier today reported a 3% increase in pre-tax profits for the first half of 2003 and expressed confidence that full year revenue growth targets will be reached.
The business division fared less well with revenues down 6% in markets made more challenging by the war in Iraq, the Sars outbreak and weak economic conditions. Harcourt Education saw earnings fall by a similar amount but most of this business is weighted towards the second half when only a small decline is forecast.
Reed said that adjusted profit before taxation in the six months to June came in at £408 million, up from £398 million in 2002. Total revenues fell slightly from £2.47 billion to £2.35 billion but at constant exchange rates, turnover was flat.
The company remains committed to above market revenue growth and double digit adjusted earnings per share growth at constant currencies and these goals seem achievable in 2003.
Crispin Davis, chief executive of Reed Elsevier, commented: “We are encouraged by the first half performance. Our businesses are performing well in their respective markets with the focus on investing in further revenue growth, driving new sales and tightly managing costs. Although each of our markets is affected in varying degrees by the challenging economic environment, our business remains strong and is showing good growth momentum.”
The market reacted well to the results and shares in Reed Elsevier were up 15p at 484p by noon today.
