Reed Elsevier plc (LON:REL) today unveiled its first-quarter trading update and reiterated its outlook for the full year.
Here are the highlights from the company statement:
We continued to focus on organic growth, with limited acquisition activity (£28m year to date).
Our financial position remains strong.
We have completed £200m of the previously announced £500m share buyback.
Parent company structure simplification and name change on track to complete on 1 July 2015, subject to AGM approval.
The full year outlook is unchanged. We remain confident that, by continuing to execute on our strategy, we will deliver another year of underlying revenue, profit, and earnings growth in 2015.
Scientific, Technical & Medical
Our customer environment remains largely unchanged. Key business trends remained positive in the first quarter. In primary research, growth in article submissions and usage remained strong across the scientific, technical and medical segments.
Full year outlook: Overall we expect another year of modest underlying revenue growth.
Risk & Business Information
The fundamental growth drivers of Risk & Business Information remain strong, with strong revenue growth across all key segments in the first quarter. The Insurance segment saw continued growth in the US auto and newer adjacent markets, and positive momentum continued in Business Services, Government, Healthcare, and Data Services.
Full year outlook: We expect underlying revenue growth trends to continue.
Trends in our major customer markets are unchanged. The roll-out of new platform releases and usage have continued to progress well.
Full year outlook: Market conditions continue to limit the scope for underlying revenue growth. We will maintain our focus on process innovation, and expect further improvement in profitability over the medium term.
Underlying revenue growth in the first quarter remained strong in the US and Japan and modest in Europe. Most other markets remain strong, albeit slightly below the high levels achieved in recent years.
Full year outlook: We expect current trends to continue, and cycling effects to reduce the overall revenue growth rate by three to four percentage points.
As of 07:13 BST, Wednesday, 22 April, Reed Elsevier plc share price is 1,138.00p.
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