Outlook: Reed Elsevier
Wednesday 21 July 1999
Mr Davis isn't anyone's fool, but is he the right man for Reed? No-one can quarrel with his performance at Aegis, the media buying group he has led since 1994. In that time the shares have risen six fold and he has undertaken a wide-ranging re-structuring programme that has developed the Aegis brands, expanded the group internationally and moved its operations into higher margin areas.
All this has made him popular in the City, but Reed is a tougher proposition. The company has lost its way after a period of management drift and a number of profits warnings. Crucially Mr Davis must find a solution to the internet challenge which has seen nimbler US rivals eat away at the Lexis-Nexis database publishing business.
However, he's got quite a lot going for him. Reed has strong brands with powerful market positions in sectors like legal and scientific publishing and a man with Mr Davis' marketing nous should be able to improve returns. Reed has also tidied up its management structure with a unitary board replacing the old executive committee. In itself this should ease the decision making process. Where Mr Davis is untried is in the field of internet related activities. For choice, the City would have preferred an American internet guru with marketing and plc experience. But if such a person exists at all, be was certainly not available for the money on offer from Reed.
Those searching for parallels with other top media appointments should look to Pearson, where Marjorie Scardino has delivered a significant share price rise in her two and a half years at the helm . After a year in which Reed's shares have underperformed the market by 25 per cent, Mr Davis will be a hot property if he can deliver anything remotely similar.
- 1 The Boy in the Dress, TV review: David Walliams' Boxing Day treat is a celebration of being different
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 4 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 5 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...