Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RELX PLC. We currently have 9 research reports from 2 professional analysts.
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Frequency of research reports
Research reports on
Legal solid, valuation wobbling
11 Nov 16
A presentation yesterday on Relx’s legal division was reassuring, underpinning expectations of several years of tick-up in revenue growth and margins to come from this business – albeit in line with existing forecasts. Even more interesting to us was a 5% fall in the stock price yesterday – unrelated to the presentation but driven by market rotation out of ‘bond proxy’ stocks. The shares are down 14% from the high reached in the last month. At 17x EPS (FY17E) they do not yet look cheap: but we highlight closer to £12 as an attractive entry point for what remains a fundamentally very attractive situation.
Continued exemplary execution
27 Oct 16
Another strong update from the now-metronomic Relx, maintaining its increased top line pace at the 9 month stage (+4% organic) helped by a particularly strong Q3 for transactional revenues in the Risk division. All underlying FY guidance remains intact, and we expect estimates to rise c5% catching up with current FX rates. Valuation remains the biggest risk, but does not look too stretched at c17x 17E EPS (FCF yield 5.3%, dividend 2.4%). Having moved back from Buy to Hold at around the £12 level, we are loath to upgrade again at current levels: but Relx remains a core holding in the sector.
Continuing to deliver...
18 Aug 16
RELX produced solid H1 16 results, with organic revenue growth positively accelerating to +4% (FY15 at +3%). Consolidated revenues reached £3,257m (+10% or +£293m) after a total forex impact of +5%, reflecting the sterling weakness versus both the US dollar and euro (only 7.6% of sales in the UK). Adjusted operating profit amounted to £1,003m, up 6% organically (+10% reported) and reflecting an improving 30.8% from 30.7% margin (cost control and continued process innovation impact). About £500m share buy-backs were completed over the period and a further £200m will be deployed by the end of the year. Adjusted EPS increased by 8% at CER. The interim dividend is raised 39% to 10.25p, nearly 26% above our forecasts, as the group announced a larger than usual interim dividend for RELX Plc primarily due to end-period forex. Note that the full-year dividend policy is unchanged, i.e. in line with adjusted EPS growth with a cover level at least 2x over the long term. Regarding the FY16e guidance, the statement is as vague as usual, i.e. “delivering another year of underlying revenues, profit and earnings growth”. CFO Nicolas Luff specified that, at current rates (i.e. with the dollar and the euro averaging between 10% and 11% stronger against sterling for the year as a whole), he would expect an 8% to 9% benefit to sterling-reported growth rates for the full year.
Perfectly well executed indeed
09 Mar 16
RELX produced solid FY15 results, globally in line with our forecasts, with revenues at £5,971m (+3%) after a total forex impact of only +1%, despite generating only 8% of its sales in the UK, as the strengthening US dollar versus sterling was offset by the weakening euro. The underlying revenues trend was similar to the 9-month period at +3%, once again supported by growth across the four businesses. Adjusted operating profit reached £1,822m, up 5% organically, and reflecting a solid 30.5% margin, in line with our expectations, up from 30.1% in FY14 and 90bp higher on an underlying basis. EPS rose by 7.9% and by 8% at CER to 60.5p, when we had forecast a slightly higher 63.5p. The full-year dividend per share is to be raised by 14.2% to 29.7p, while a further £700m share buy-back was announced for 2016 (coming after a £500m plan in 2015). Regarding the FY16 guidance, the statement is as vague as usual, i.e. “delivering another year of underlying revenues, profit and earnings growth”, with early FY16 trends being in line with those of FY15.
All businesses continuing to show underlying growth…
28 Oct 15
RELX produced solid first nine months trading results, similar to H1 15 trends. Underlying revenues improved by 3%, once again supported by growth across the four businesses. The group, which pursued its portfolio management over the period (14 content, data and exhibition assets acquired year to date for £91m and 11 assets disposed of for £72m) reaffirmed its FY guidance, although remaining as vague as usual, i.e. "delivering another year of underlying revenues, profit and earnings growth". Out of the £500m share buy-back plan announced for 2015, £425m has been completed so far with the remaining £75m to be deployed by year-end. It was specified that the Board will not make any decision on a 2016 share buy-back until February.
Panmure Research - Media Flash 06-10-15
06 Oct 15
US dollar strength has contributed to yet another strong week for UK media: year to date, the sector is now 14% ahead of the market. The key USD earners to miss out on this trend last week were Entertainment One (acquisition of Astley Baker Davies and rights issue) and Euromoney (emerging market and investment banking concerns). Rightmove had a weaker week, but remains the top performer in the sector on a year to date basis. In contrast Entertainment One is now down over 20% year to date, with valuation now down to 8.8x EPS and 7.5x EBITDA for Mar17E (based on consensus forecasts).
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
Actual Experience (ACT LN) 2017 – a milestone year for revenue | Bagir Group (BAGR LN) Independent NED appointment to strengthen Board composition | Bioquell (BQE LN) Reassuring pre-close statement | Carador Income Fund (CIFU LN) Q4 dividend increased to 2.75c, 0.5c higher than forecast | FreeAgent (FREE LN) Contract with Royal Bank of Scotland | Halfords Group (HFD LN) Excellent Q3 update, special divi and confidence in FX mitigations | N Brown Group (BWNG LN) Robust peak trading with reversal of drag from older titles | NCC Group (NCC LN) Interims confirm underlying business sound | St Ives (SIV LN) Downgrade | Summit Therapeutics (SUMM LN) Dr David Roblin appointed Chief Operating Officer and R&D President | Wilmington Group (WIL LN) Acquisition – Further scaling of Healthcare
18 Jan 17
Pearson has produced a surprisingly weak update, capitulating on long-standing market concerns regarding North American higher education courseware, accelerating its restructuring programme and rebasing profit and dividend guidance from FY17E onwards. We move from Buy to Hold, with an initial view is that the shares could fall towards the 600-700p level. Call 0830.
Staying on the front foot
19 Jan 17
The mission’s year-end trading update indicates that the group continued its good performance in its traditionally stronger second half, albeit at a lower premium than first half progress. FY16 revenue and headline profit were up 8.0%, higher than GroupM’s estimate of UK ad spend growth at 7.2% and the 6.3% average top-line growth of the quoted smaller agency sector. Collaboration between the mission’s networked agencies continues to extend, with the strong (and loyal) client roster giving a deep pool in which to win a greater share of spend. The valuation discount to the sector has reduced, but remains unjustifiably large.
What a year it was!
16 Jan 17
2016 got off to a rocky start. Not long into January, after just a few trading days, global equity markets lost more than US$4tn of value due to investor sentiment towards China’s economic slowdown and depreciating currency. This was immediately followed by a slump in the oil price. By the third week of January, Brent Crude hit its year low at $27.10 a barrel causing an immediate sell off in the energy sector. Once the Q1 dust had settled, attention turned to the UK’s vote on whether to remain a member of the EU. The Brexit vote result proved to be a genuine shock for markets, with many investors having believed that the UK would stay within the European Union. Attention soon turned to the equally ill-tempered US Presidential elections and all the political and economic unknowns that Trump’s victory has spawned. As a result, AIM, has seen a roller-coaster of a year in 2016.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January