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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|05Dec16 06:03||RNS||Transaction in Own Shares|
|02Dec16 05:27||RNS||Transaction in Own Shares|
|01Dec16 06:19||RNS||Total Voting Rights|
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|30Nov16 05:27||RNS||Transaction in Own Shares|
|29Nov16 05:37||RNS||Transaction in Own Shares|
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).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Response to Government consultation
02 Dec 16
In the 2015 Autumn Statement, the Government stated the intention to remove the right to general damages for minor soft tissue injury claims with compensation for injuries such as whiplash now being made in medical care rather than cash. In addition, the Government proposed to raise the small claims limit for personal injury cases from £1,000 to £5,000.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.
The return of the goodwill IPO: How to value a brand?
21 Jun 16
I wake up in my DFS (DFS) bed with a Gin and Fevertree (FEVR) hangover, place a trade on my phone through CMC Markets (CMCX), have a quick go on my Hornby (HRN) train set, eat half a box of Hotel Chocolat (HOTC), all before heading out in my brand spanking new Joules (JOUL) wellies to my local Metro Bank (MTRO) branch. All of these well-known consumer brands share a common theme in that they are all listed or quoted on the London Stock Exchange. It’s been a year so far reminiscent of 2014 when we saw a flurry of large brands rush for the IPO door such as Pets at Home (PETS), Saga (SAGA), AA (AA) and Poundland (PLND). Most looking for a private equity exit. The IPO adventure of these companies tends to be fairly boiler plate: the valuation is a battleground between the exiting private equity house and incoming institutional investors, the book is many times covered and the scale backs are eye watering. But what makes these companies more alluring to investors than a company nobody has ever heard of which in fact may be profitable, dividend paying and ultimately, on a lower valuation?