RELX PLC — FY2021 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2021; filed February 17, 2022. This is an annual report, not a separate Q4 earnings report. Financial statements are prepared under IFRS as issued by the IASB. RELX provides information-based analytics and decision tools through Risk, Scientific, Technical & Medical (STM), Legal, and Exhibitions.
Financial performance
| Metric | FY2021 | FY2020 | Change |
|---|---|---|---|
| Revenue | £7,244m | £7,110m | +2% reported; +7% underlying |
| Reported operating profit | £1,884m | £1,525m | +24% |
| Adjusted operating profit | £2,210m | £2,076m | +6% reported; +13% at constant currency |
| Reported operating margin | 26.0% | 21.4% | +4.6 percentage points |
| Adjusted operating margin | 30.5% | 29.2% | +1.3 percentage points |
| Profit before tax | £1,797m | £1,483m | +21% |
| Net profit attributable to RELX PLC shareholders | £1,471m | £1,224m | +20% |
| Adjusted net profit attributable to shareholders | £1,689m | £1,543m | +9% |
| Reported / adjusted EPS | 76.3p / 87.6p | 63.5p / 80.1p | Adjusted EPS +9%; +17% at constant exchange rates |
| Cash generated from operations | £2,476m | £2,264m | +9% |
| Net debt at year-end | £6,017m | £6,898m | Down £881m |
Revenue mix was 58% subscriptions and 42% transactional; 86% electronic, 7% face-to-face, and 7% print. Currency translation reduced 2021 revenue by £414m and operating profit by £120m versus 2020. Reported operating profit benefited from lower acquired-intangible amortisation and the absence of the £183m Exhibitions exceptional charge recorded in 2020.
Segment results
| Segment | Revenue | Revenue growth | Adjusted operating profit |
|---|---|---|---|
| Risk | £2,474m | +2% reported; +9% underlying | £915m; +2% reported |
| STM | £2,649m | -2% reported; +3% underlying | £1,001m; -2% reported |
| Legal | £1,587m | -3% reported; +3% underlying | £326m; -1% reported |
| Exhibitions | £534m | +48% reported; +44% underlying | £10m profit, versus £164m loss in 2020 |
Cash, debt, liquidity, and shareholder returns
- Year-end gross debt was £6,167m, cash and cash equivalents £113m, and reported net debt £6,017m. Net debt declined £707m excluding currency effects.
- Committed bank facilities totaled $3.0bn and were undrawn at year-end. The company stated it had ample liquidity and access to debt capital markets.
- Capital expenditure on property, equipment, and internally developed intangibles was £339m, including £309m of capitalised development spend.
- Dividends paid during the year were £920m. The Board proposed a 35.5p final dividend, taking the stated full-year dividend to 49.8p. The longer-term policy is to grow dividends broadly in line with adjusted EPS while targeting at least 2x dividend cover.
Changes, outlook, risks, and contingencies
- Underlying revenue growth returned to 7% after a 9% decline in 2020. Exhibitions revenue improved as venues reopened; RELX held 269 face-to-face events in 2021, while digital event-related revenue also grew strongly.
- Management described good underlying growth in Risk, STM, and Legal, supported by electronic products, analytics, and decision tools. Print revenue continued to decline. No quantified forward-year revenue or earnings guidance is provided in the supplied filing text.
- Principal risks include Covid-19 and event restrictions; economic, political, and funding conditions; competition and technology change; data privacy, cybersecurity, and third-party data access; intellectual-property protection; regulation and FTC settlement-order compliance; acquisitions; talent retention; pensions; tax; foreign exchange; and funding or credit-market conditions.
- Uncertain tax-position provisions were £228m at year-end, down from £276m. Ernst & Young identified uncertain tax positions as a critical audit matter. The financial-statement audit and internal-control audit received unqualified opinions; management and the auditor concluded internal control over financial reporting was effective at year-end.
- US data-security and privacy proceedings were principally settled; the company said a substantial portion of agreed cash payments was reimbursed by insurance and third-party indemnities. Ongoing compliance and independent monitoring costs were not expected to materially affect results or financial position. Other ordinary-course proceedings were likewise not expected to have a material adverse effect.
- Iran-related activity generated approximately £1.5m revenue in 2021, compared with £4.5m in 2020; estimated 2021 net profit from these activities was 0.02% of reported net profit.
- After year-end, RELX announced a share repurchase programme of up to £150m through April 20, 2022, as the first part of £500m expected in buybacks during 2022.
Key facts for investors to verify
- Reconcile adjusted measures to IFRS results and account for the £183m exceptional Exhibitions charge in the 2020 comparison.
- Assess how much of 2021 growth was underlying versus currency, acquisitions, disposals, and Exhibitions reopening or event-cycle effects.
- Review net-debt composition, debt maturities, currency exposure, and continued access to the undrawn $3.0bn facilities.
- Track the £228m uncertain-tax-position provision, related tax enquiries, and any movement in the effective tax rate.
- Monitor exhibition recovery and data privacy, cybersecurity, regulatory, and FTC-related obligations, along with the execution and funding of announced buybacks and dividends.