10 February 2022
RESULTS FOR THE YEAR TO 31 DECEMBER 2021
RELX, the global provider of information-based analytics and decision tools, reports results for 2021.
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2021 Highlights Ø Revenue £7,244m (£7,110m), underlying growth +7% Ø Adjusted operating profit £2,210m (£2,076m), underlying growth +13% Ø Adjusted profit before tax £2,077m (£1,916m), constant currency growth +15% Ø Reported operating profit £1,884m (£1,525m) Ø Reported profit before tax £1,797m (£1,483m) Ø Adjusted EPS 87.6p (80.1p), constant currency growth +17% Ø Reported EPS 76.3p (63.5p) Ø Net debt/EBITDA 2.4x; adjusted cash flow conversion 101% Ø Proposed full year dividend 49.8p (47.0p) +6%
2022 Outlook Ø Following the improved performance in 2021 across the company, we expect 2022 full year underlying growth rates in revenue and adjusted operating profit, as well as constant currency growth in adjusted earnings per share, to remain above historical trends. Ø We are announcing our intention to deploy a total of £500m on share buybacks in 2022.
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Chief Executive Officer, Erik Engstrom, commented:
"RELX delivered strong underlying revenue and profit growth in 2021. We believe that this improved growth trajectory is a reflection of our ongoing strategy of focusing on the organic development of increasingly sophisticated analytics and decision tools that deliver enhanced value to our customers across market segments. Recent acquisitions, which have supplemented our organic growth strategy, have continued to perform well."
"We also continued to build on our strong corporate responsibility performance during the year, further improving on our key internal metrics and extending the scope of our unique contributions. This was again recognised in the high ESG ratings ascribed to us by a number of external agencies."
"In recognition of the strong financial performance we are proposing a +6% increase in the full year dividend to 49.8p (47.0p)."
Operating and financial review
Revenue £7,244m (£7,110m); underlying growth +7%: Electronic revenue, representing 86% of the total, grew +6%, driven by further development of analytics and decision tools.
Adjusted operating profit £2,210m (£2,076m); underlying growth +13%: Continued process innovation kept cost growth below revenue growth, driving strong underlying growth in adjusted operating profit, and resulting in an improvement in adjusted operating margin to 30.5% (29.2%). Adjusted operating profit includes a £35m one-off charge relating to reductions in our corporate real estate footprint.
Reported operating profit £1,884m (£1,525m): Reported operating profit includes amortisation of acquired intangible assets of £298m (£376m) and portfolio related costs of £21m (credit of £12m). Exceptional costs were nil (£183m).
Adjusted profit before tax £2,077m (£1,916m); constant currency growth +15%: Adjusted profit before tax benefited from lower adjusted net interest expense of £133m (£160m), reflecting both lower average net borrowings and lower interest rates.
Reported profit before tax £1,797m (£1,483m): Reported profit before tax includes disposal net gains of £55m (£130m). Reported net interest expense was £142m (£172m).
Tax: The adjusted tax charge was £384m (£373m). The adjusted effective tax rate was 18.5% (19.5%), with both years benefitting from non-recurring tax credits. The reported tax charge was £326m (£275m).
Adjusted EPS 87.6p (80.1p) +9%; constant currency growth +17%
Reported EPS 76.3p (63.5p) +20%
Dividend: We are proposing a +6% increase in the full year dividend to 49.8p (47.0p). Dividend cover, based on adjusted earnings per share, is 1.8x (1.7x).
Net debt/EBITDA 2.4x (3.3x) including pensions: Net debt, including leases, was £6.0bn (£6.9bn) at 31 December 2021. Excluding pensions, net debt/EBITDA was 2.3x (3.0x). Adjusted cash flow conversion was 101% (97%).
Portfolio development: In 2021 we completed twelve small acquisitions for a total consideration of £255m, and disposed of five small assets for a total consideration of £22m.
Share buybacks: No share buybacks were made in 2021. In 2022 we intend to deploy £500m on share buybacks reflecting our strong financial position and cash flow profile.
Environmental, social and governance (ESG) recognition: In 2021 RELX achieved a AAA MSCI ESG rating for a sixth consecutive year; moved up to first in its industry sector in Sustainalytics ESG rankings; and maintained its number four ranking in the Responsibility100 Index, which measures FTSE 100 companies against the UN Sustainable Development Goals. RELX continues to be one of 38 LEAD companies of the UN Global Compact among approximately 12,000 business signatories.
RELX FINANCIAL SUMMARY
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Year ended 31 December |
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2021 |
2020 £m |
Change |
Change at constant currencies |
Underlying Growth |
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Revenue |
7,244 |
7,110 |
+2% |
+8% |
+7% |
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Adjusted operating profit |
2,210 |
2,076 |
+6% |
+13% |
+13% |
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Adjusted operating margin |
30.5% |
29.2% |
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Reported operating profit |
1,884 |
1,525 |
+24% |
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Adjusted net interest expense |
(133) |
(160) |
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Adjusted profit before tax |
2,077 |
1,916 |
+8% |
+15% |
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Adjusted tax |
(384) |
(373) |
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Adjusted net profit |
1,689 |
1,543 |
+9% |
+17% |
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Reported net profit |
1,471 |
1,224 |
+20% |
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Reported net margin |
20.3% |
17.2% |
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Adjusted earnings per share |
87.6p |
80.1p |
+9% |
+17% |
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Reported earnings per share |
76.3p |
63.5p |
+20% |
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Net debt |
6,017 |
6,898 |
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Ordinary dividend per share |
49.8p |
47.0p |
+6% |
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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. In 2020, we also excluded exceptional costs in the Exhibitions business. Reconciliations between the reported and adjusted figures are set out on page 31. 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 2020 full-year average and hedge exchange rates.
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ENQUIRIES:
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Colin Tennant (Investors) +44 (0)20 7166 5751 |
Paul Abrahams (Media) +44 (0)20 7166 5724 |
Disclaimer regarding forward-looking statements
This announcement contains forward‐looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC (together with its subsidiaries, "RELX", "we" or "our") to differ materially from those expressed in any forward‐looking statement. We consider any statements that are not historical facts to be "forward‐looking statements". The terms "outlook", "estimate", "forecast", "project", "plan", "intend", "expect", "should", "could", "will", "believe", "trends" and similar expressions may indicate a forward‐looking statement. Important factors that could cause actual results or outcomes to differ materially from estimates or forecasts contained in the forward‐looking statements include, among others: the impact of the Covid-19 pandemic as well as other pandemics or epidemics; current and future economic, political and market forces; changes in law and legal interpretations affecting RELX intellectual property rights and internet communications; regulatory and other changes regarding the collection, transfer or use of third‐party content and data; changes in the payment model for RELX products; demand for RELX products and services; competitive factors in the industries in which RELX operates; inability to realise the future anticipated benefits of acquisitions; significant failure or interruption of RELX systems; exhibitors' and attendees' ability and desire to attend face‐to‐face events and availability of event venues; changes in economic cycles, severe weather events, natural disasters and terrorism; compromises of RELX cyber security systems or other unauthorised access to our databases; failure of third parties to whom RELX has outsourced business activities; inability to retain high-quality employees and management; legislative, fiscal, tax and regulatory developments; exchange rate fluctuations; and other risks referenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission. You should not place undue reliance on these forward‐looking statements, which speak only as of the date of this announcement. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward‐looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events.
Notes for Editors
About RELX
RELX is a global provider of information-based analytics and decision tools for professional and business customers. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs more than 33,000 people over 40% of whom are in North America. The shares of RELX PLC, the parent company, are traded on the London, Amsterdam and New York stock exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX. The market capitalisation is approximately £45bn/€53bn/$61bn.
The Annual Report and Financial Statements 2021 are expected to be available on the RELX website at www.relx.com from 17 February 2022. Copies of the Annual Report and Financial Statements 2021 are expected to be posted to shareholders of RELX PLC on 4 March 2022. Copies of the 2021 Results Announcement are available to the public on the RELX website and from:
RELX PLC
1-3 Strand
London WC2N 5JR
United Kingdom
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