FTSE 100 publisher Reed Elsevier yesterday announced dramatic plans to rename itself RELX and simplify its structure into one business unit, making it more transparent for investors.
Reed, Europe’s largest media group, has evolved in recent years by putting a greater focus on its fast-growing risk and events units.
Its transformation has sent its shares up more than 150 per cent since 2012.
Yesterday, Reed reported 2014 results broadly in line with forecasts, predicted further growth for 2015 and announced plans for a £500m share buyback.
Its shares slumped, however, after analysts questioned whether the solid performance would be enough to sustain the strong share price momentum and others noted that the buyback was down on last year’s £600m.
“We are now extending our efforts to modernise and simplify the company to our corporate structure, our share listings, and our corporate entity names,” said chief executive Erik Engstrom, announcing the new RELX name will become effective from 1 July. “We are announcing a set of changes that represent a significant simplification without impacting the economic interests of our shareholders.”
Shares in the group fell 4.8 per cent yesterday to close down at 1,130p in London.