Reed's investment plans send shares soaring
Friday 10 December 1999
Crispin Davies, chief executive of Reed Elsevier since September, said the investment would target new product development and marketing, particularly in Internet-based information services. One aim is to improve search-engine resources and other Web tools.
"We are looking to fund the majority of this investment through a rigorous review of our cost base, which will result in exceptional restructuring charges of not more than pounds 250m, which will be taken across the current year and next," he said.
A strategic review, to be concluded ahead of schedule in February, has reaffirmed the company's focus on its three principal publishing markets - scientific, professional and business. "I believe all have growth potential and there is a clear opportunity to add value," Mr Davis said.
Reed International shares rallied 59.75p to 443p, rebounding from near six-year lows, in heavy buying. Even so, the publisher is well below its 12-month high of 630p last winter.
Analysts supported the steps taken by Mr Davis. "He is doing exactly the right thing," said Paul Richards of WestLB Panmure. "He is addressing the cost base and ploughing all the savings into new product development, marketing, stronger management and, above all, the Internet."
In the trading statement, Reed Elsevier said 1999 earnings "continue to be affected by less favourable market and competitive conditions and investment". Lexis-Nexis, the online information distributor, is showing only "small" increases in revenues, while revenues at Cahners Business Information "remain flat". Second-half earnings are expected to fall below the pounds 360m recorded in the second half last year.
Top Gear presenter is no stranger to foot-in-mouth controversy
Review: Mike Leigh's biopic is a rambling, rich character study
Want to ward off (or welcome) trick-or-treaters? Here's how
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...