Financial highlights
Robust financial performance in unprecedented
global recession
- Core professional information businesses held up relatively well
- Advertising and promotion markets significantly impacted
- Costs reduced substantially
- Excellent first year profit growth from ChoicePoint acquisition
- Strong cash generation and improved financial position
Business trends continue in 2010; longer term prospects encouraging
Reed Elsevier combined businesses
| For the year ended 31 December | 2009 £m |
2008 £m |
% change |
% change at constant currencies |
|---|---|---|---|---|
| Reported figures | ||||
| Revenue | 6,071 | 5,334 | +14% | 0% |
| Operating profit | 787 | 901 | -13% | -22% |
| Profit before tax | 435 | 617 | -29% | -36% |
| Net borrowings | 3,931 | 5,726 |
| For the year ended 31 December | 2009 £m |
2008 £m |
% change |
% change at constant currencies |
|---|---|---|---|---|
| Adjusted figures | ||||
| Operating profit | 1,570 | 1,379 | +14% | 1% |
| Profit before tax | 1,279 | 1,205 | +6% | -6% |
| Operating cash flow | 1,558 | 1,407 | +11% | -2% |
| Operating margin | 25.9% | 25.9% | ||
| Operating cash flow conversion | 99% | 102% |
Parent companies
| Reed Elsevier PLC | 2009 | 2008 | % change |
% change at constant currencies |
|---|---|---|---|---|
| Reported earnings per share | 17.2p | 22.1p | -22% | |
| Adjusted earnings per share | 45.9p | 44.6p | +3% | -9% |
| Ordinary dividend per share | 20.4p | 20.3p | 0% |
| Reed Elsevier NV | 2009 | 2008 | % change |
% change at constant currencies |
|---|---|---|---|---|
| Reported earnings per share | €0.32 | €0.44 | -27% | |
| Adjusted earnings per share | €0.79 | €0.87 | -8% | -9% |
| Ordinary dividend per share | €0.400 | €0.404 | -1% |
The Reed Elsevier combined businesses encompass the businesses of Reed Elsevier Group plc and Elsevier Reed Finance BV, together with their two parent companies, Reed Elsevier PLC and Reed Elsevier NV (the “Reed Elsevier combined businesses”). The results of Reed Elsevier PLC reflect its shareholders’ 52.9% economic interest in the Reed Elsevier combined businesses. The results of Reed Elsevier NV reflect its shareholders’ 50% economic interest in the Reed Elsevier combined businesses. The respective economic interests of the Reed Elsevier PLC and Reed Elsevier NV shareholders take account of Reed Elsevier PLC’s 5.8% interest in Reed Elsevier NV.
Adjusted figures are additional performance measures used by management and are reconciled to the reported figures in note 11 to the combined financial statements and note 9 to the respective parent company financial statements.
The percentage change at constant currencies refers to the movements at constant exchange rates, using 2008 full year average and hedge rates.
