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.
- 1 King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Presidential optical illusion offers clues to how brain processes faces
- 5 Grumpy Roald Dahl letter warning student to 'eschew beastly adjectives' rediscovered after 35 years
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ukip Jelly Babies cause uproar on Amazon
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...