Reed Elsevier revenue increases by 3%

Reed Elsevier revenue increases by 3%

Revenue at the RELX Group, formerly known as Reed Elsevier, increased 3% to almost £6bn last year, with net profit rising 6% to just over £1bn.

The group’s scientific arm increased its underlying revenue by 2%, and the legal and exhibition arms increased revenues by 1% and 5% respectively.

Chief executive Erik Engstrom said that trading in recent months was consistent with 2015 and added that he was confident that “we will deliver another year of underlying revenue, profit, and earnings growth in 2016”.

The information and analytics company reported “record” revenues due to strong demand for its tools that detect risks such as financial fraud.

Its risk and business analytics division, whose decision-making tools help banks spot money launderers and insurance companies filter out fraudulent claims, reported underlying revenue growth of 7% to £1.6bn.

Engstrom said the group aimed to transform all of its divisions to offer the kind of “sophisticated information-based analytics and decision tools” that are core to its risk division.

RELX is dual-listed in London and Amsterdam with a combined market value of £26bn. It recommended a 14% increase in the dividend to 29.7p for the London-listed shares and said it would purchase an additional £700m in 2016, having bought back £500m of its shares last year. The company RELX’s share price, which has more than doubled in the past four years, was up 2.9% to £12.53 in London on Thursday.