27th Feb 2014 09:18
LONDON (Alliance News) - Anglo-Dutch publisher Reed Elsevier PLC Thursday raised its dividend and said it will maintain its share buyback programme after reporting higher earnings in 2013 thanks to acquisitions and disposals it made.
It said it expects further growth this year at constant currency rates.
Its net profit rose to GBP1.11 billion in 2013, from GBP1.04 billion in 2012, even though revenues declined to GBP6.04 billion, from GBP6.12 billion.
Reed said the results reflect the disposal of the sale of its pre-employment screening business in the first half of the year, and bolt-on acquisitions it made, including Mapflow and Enclarity.
"Taken together, portfolio changes had the effect of reducing reported revenues but increasing the adjusted operating profit margin, with underlying cost growth broadly matching revenue growth," it said in a statement.
Reed saw its shares rise 1.2% to 919.50 pence in early trade after it increased its full-year dividend by 7% to 24.60 pence on the back the higher earnings and said it would maintain its share buyback programme at GBP600 million this year, having raised it to that level last year.
"Early trends across our business in 2014 remain broadly consistent with 2013, and we are confident that, by continuing to execute on our strategy, we will deliver another year of underlying revenue, profit, and earnings growth," Chief Executive Erik Engstrom said in a statement.
Underlying figures exclude disposals and acquisitions and are at constant currencies. It is the company's preferred measure of performance.
By Steve McGrath; [email protected]; @stevemcgrath1
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