Parent companies
Reed Elsevier PLC |
2008
£m |
2007
£m |
%
change |
%
change at
constant
currencies |
| Reported profit attributable |
241 |
624 |
-61% |
|
| Adjusted profit attributable |
486 |
451 |
+8% |
-1% |
| Reported earnings per share |
22.1p |
49.7p |
-56% |
|
| Adjusted earnings per share |
44.6p |
35.9p |
+24% |
+15% |
| Ordinary dividend per share |
20.3p |
18.1p |
+12% |
|
Reed Elsevier NV |
2008
€m |
2007
€m |
%
change |
%
change at
constant
currencies |
| Reported profit attributable |
294 |
855 |
-66% |
|
| Adjusted profit attributable |
580 |
622 |
-7% |
-1% |
| Reported earnings per share |
€0.44 |
€1.10 |
-60% |
|
| Adjusted earnings per share |
€0.87 |
€0.80 |
+9% |
+15% |
| Ordinary dividend per share |
€0.404 |
€0.425 |
-5% |
|
For the parent companies, Reed Elsevier PLC and Reed Elsevier NV, adjusted earnings per share for total operations were respectively up 24% at 44.6p (2007: 35.9p) and up 9% at €0.87 (2007: €0.80). At constant rates of exchange, the adjusted earnings per share of both companies increased by 15%.
The reported earnings per share for Reed Elsevier PLC shareholders was 22.1p (2007: 49.7p) and for Reed Elsevier NV shareholders was €0.44 (2007: €1.10). The decline principally reflects that 2007 included the gain on disposal of Harcourt Education businesses and prior year tax credits.
The equalised final dividends proposed are 15.0p per share for Reed Elsevier PLC and €0.290 per share for Reed Elsevier NV, 10% higher and 7% lower respectively compared with the prior year. This gives total dividends for the year of 20.3p and €0.404, up 12% and down 5% on 2007 respectively. The difference in growth rates in the equalised dividends reflects the significant strengthening of the euro against sterling between dividend announcement dates.
Dividend cover, based on adjusted earnings per share and the total interim and proposed final dividends for the year, was 2.2 times for both Reed Elsevier PLC and Reed Elsevier NV.
On 18 January 2008, a special distribution was paid to shareholders in the equalisation ratio from the net proceeds of the sale of the Harcourt Education division. The distribution was 82.0p per share for Reed Elsevier PLC and €1.767 per share for Reed Elsevier NV and amounted to £2,013m/€2,690m in aggregate.
The special distribution was accompanied by a consolidation of the ordinary share capitals of Reed Elsevier PLC and Reed Elsevier NV on the basis of 58 new ordinary shares for every 67 existing ordinary shares. This represented a 13.4% consolidation of ordinary share capital, being the aggregate special distribution expressed as a percentage of the combined market capitalisation of Reed Elsevier PLC and Reed Elsevier NV (excluding the 5.8% indirect equity interest in Reed Elsevier NV held by Reed Elsevier PLC), as at the date of the announcement of the special distribution.
For the purposes of calculating earnings per share, the effective date of the share consolidation is deemed to be 18 January 2008, being the date on which the special distribution was paid.
Shares repurchased in the year totalled 3.2 million ordinary shares of Reed Elsevier PLC and 2.1 million ordinary shares of Reed Elsevier NV.
Mark Armour
Chief Financial Officer