Reed Profits Lessened By Collapse Of Merger

Publishing group Reed Elsevier today announced adjusted profit before tax of £823 million, up from £805 million in 1996. However, after exceptional items are deducted from the company’s pre-tax profit, it stands at just £346 million, down from £806 million in the previous year.

The costs in advisors for the planned merger with Wolters Kluwer, which collapsed this week (subscribers see Reed And Wolters Call Off Merger), and the non cash write down of intangible assets, cut pre-tax profits back significantly.

Operating profit before exceptional items was reported to be up 3% to £819 million and earnings per share were up by only 1% to 28.3p. The group’s statement says that it believes to have made “good progress” during 1997.

Reed Elsevier: 0171 227 5670