Reed sees 'modest' growth in 2011

17th Feb 2011 07:04

Things improved at business and academic publisher Reed Elsevier during 2010 and a "gradual" recovery this year should deliver "modest" growth in 2011.The Anglo-Dutch firm revealed adjusted profit before tax for the 12 months was flat at £1.28bn, as were sales, unchanged at £6.06bn. But the company achieved organic revenue growth of 2%, much better than last year's 6% decline, pointed out chief executive Erik Engstrom.Reported pre-tax profit was up 77% to £768m, mainly due to there being no intangible asset and goodwill impairment this time and lower exceptional restructuring charges."As we go into 2011, most of our markets are stable or improving and we are building on the actions taken in 2010 to strengthen the business further," Engstrom said. "Overall, we expect a gradual recovery and a continued improvement in performance." Revenue at Elsevier was up 2% and adjusted operating profit grew 4% at constant currency. Growth in 2011 is expected to be "modest". Sales increased by 1% at LexisNexis, though profit fell 12%.The exhibitions business grew 9% and 4% respectively, and the outlook is "encouraging", although a 20% slump in sales at the business information division prevented any increase in profit. Portfolio changes and improving markets should bring benefits in 2011, the group said.The final dividend is unchanged at 15p a share.