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July 28, 2011 4:00 am ET
Mark Armour - Chief Financial Officer, Member of Executive Council, Member of Executive Board and Executive Director
Anthony Habgood - Chairman, Member of Remuneration Committee and Chairman of Reed Elsevier NV
Unknown Executive -
Erik Engstrom - Chief Executive Officer, Member of Executive Board and Executive Director
Claudio Aspesi - Sanford C. Bernstein & Co., Inc.
Patrick Wellington - Morgan Stanley
Polo Tang - UBS Investment Bank
Vighnesh Padiachy - Goldman Sachs Group Inc.
Paul Gooden - RBS Research
Colin Tennant - Nomura Securities Co. Ltd.
William Packer - Exane BNP Paribas
Richard Menzies-Gow - BofA Merrill Lynch
Thomas Singlehurst - Citigroup Inc
Mark Braley - Deutsche Bank AG
Paul Sullivan - Barclays Capital
Giasone Salati - Execution Noble LLC
Well, good morning, ladies and gentlemen, and welcome to Reed Elsevier's Interim Results Presentation. For all of you who've come, thank you so much for coming, and for those of you who are joining on our webcast, thank you for listening in.
I'm pleased to be able to report that in the first half of 2011, we had underlying revenue growth in each of our businesses if, of course, we exclude the net cycling out effect of the biennial exhibitions. Combined with good growth in operating margin, reflecting both a change in business mix and margin improvement in 3 of our businesses, this has resulted in a return to growth in adjusted earnings per share of 5% for both PLC and NV.
Reported earnings per share are again strongly ahead, being up 20% in both PLC and NV. And it's also interesting to note that we are now in a position where no restructuring costs were taken as exceptional during the period. Given the resumption of growth in EPS, the board is pleased to be able to recommend an increase in dividends, 5% for PLC and 1% for NV. But that difference, as you know, reflects only movements in the sterling euro exchange rates between the dividend announcement dates.