Reed Results Beat Expectations

Anglo-Dutch publishing group Reed Elsevier this morning turned in better than expected yearly revenue, a day after its proposed acquisition of US medical publishing group, Harcourt General, was referred to the Competition Commission in the UK.

Revenues for 2000 grew by 9% to £3.77 billion and pre-tax profit dropped by 3% to £690 million. Both are ahead of forecasts by ABN Amro, which had expected revenue growth of 6.8% to £3.62 billion and pre-tax profit decline of 4.4% to £679 million.

Last year was a transitional one for Reed Elsevier which saw a new management team and a business restructuring. In October the group announced plans to acquire US publisher Harcourt General in a deal which would create the world’s largest scientific, technical and medical (STM) publisher. These plans were put on hold yesterday as the deal was referred to the UK’s Competition Commission.

“We are very encouraged by the progress made over the last year in reshaping and reinvigorating the business. 2001 should see Reed Elsevier move very significantly towards our stated goal of above market revenue growth and double-digit earnings growth in 2002 and beyond,” says chief executive officer Crispin Davis.

Stock in Reed was up 24p at 659p by midday today.

Reed Elsevier: 020 7222 8420

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