15th Nov 2007 07:00
Reed Elsevier PLC15 November 2007 News Release Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV 0700 (GMT) 15 November 2007 REED ELSEVIER PROVIDES UPDATE ON TRADING Reed Elsevier today reaffirmed that it is on track to deliver in 2007 on itsgoal of a minimum 10% growth in adjusted earnings per share at constantcurrencies. The Elsevier, LexisNexis and Reed Business divisions are performing well withgood underlying revenue growth as they execute against their online and workflowsolution strategies. Revenue growth and firm cost management are improvingoperating margins across the business. A wide ranging programme to drive furthercost efficiency is well in hand and will contribute to continued underlyingmargin improvement in future years. The disposals of the Harcourt Assessment and Harcourt US Schools Educationbusinesses are on track and are expected to be completed in late 2007/early 2008following US regulatory approvals. The aggregate net proceeds for the sale ofthe Harcourt Education division of approximately $4.0bn will be returned toshareholders by way of special dividend following completion. Sir Crispin Davis, Chief Executive Officer, said: "The business is performingwell with strong demand for our online information and workflow solutions. Thesale of the Harcourt Education division is on track and moves us closer to ourgoal of Reed Elsevier becoming a more cohesive and synergistic business drivingcontinued market success, earnings growth and growing return on capital." The performance trends in Reed Elsevier's businesses are as follows: Elsevier: Subscription renewals are very strong and there is good demand for ourexpanding online services. The second half medical publishing programme isgoing well with good growth in particular in the nursing and health professionalsectors. Pharma advertising markets remain weak, but represent a relativelysmall part of the business. LexisNexis: Strong demand continues for online information subscriptions and newsolutions sales in US and international legal markets. US corporate and publicmarkets continue to see higher volumes of patent applications and good growth inrisk information and analytics. Reed Business: The exhibitions business has continued to perform strongly infavourable markets. The magazine and information business is delivering overallsolid growth with rapid growth in online sales more than compensating for thedecline in print. Harcourt Education (presented as discontinued businesses for 2007): The basalbusiness has performed well in US state textbook adoptions, particularly insecondary school markets. The Assessment business has made significant progressin performance and profitability through improved operational efficiency. This announcement contains forward looking statements within the meaning ofSection 27A of the US Securities Act 1933, as amended, and Section 21E of the USSecurities Exchange Act 1934, as amended. These statements are subject to anumber of risks and uncertainties and actual results, and events could differmaterially from those currently being anticipated as reflected in such forwardlooking statements. The terms "expect", "should be", "will be" and similarexpressions identify forward looking statements. Factors which may cause futureoutcomes to differ from those foreseen in forward looking statements include,but are not limited to: general economic conditions in Reed Elsevier's markets;exchange rate fluctuations; customers' acceptance of our products and services;the actions of competitors; legislative, fiscal and regulatory developments;changes in law and legal interpretations affecting Reed Elsevier's intellectualproperty rights and internet communications; and the impact of technologicalchange. - ends - Enquiries Sybella Stanley Tel: +44 (0) 20 7166 5630(Investors) Patrick Kerr Tel: +44 (0) 20 7166 5646(Media) Notes to editors Reed Elsevier Group plc Reed Elsevier Group plc is a world leading publisher and information provider.It is owned equally by its two parent companies, Reed Elsevier PLC and ReedElsevier NV. The parent companies are listed on the London, Amsterdam and NewYork Stock Exchanges, under the following ticker symbols: London: REL;Amsterdam: REN; New York: RUK and ENL. In 2006, Reed Elsevier made adjustedprofit before taxation of £1,052 million on turnover of £5,398 million. Thegroup employs 36,000 people, including approximately 20,000 in North America.Operating in the scientific, legal, educational and business-to-businesssectors, Reed Elsevier provides high value and flexible information solutions toprofessional end users, with increasing emphasis on internet delivery. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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