FINANCIAL HIGHLIGHTS
Sales up 2% at CER to £2.0bn reflecting good growth in digital, services and emerging markets, offset as expected, by the impact of school curriculum change in the US and the UK; also, this year, seasonal changes in phasing have helped first half sales in North America and hurt those in Core markets, especially the UK.
Adjusted operating profit, excluding Mergermarket, of £73m down from £124m last year, due to increased net restructuring charges (£43m in 2014; £29m in 2013), currency movements and the impact on margins of the phasing of revenues into the second half of 2014.
Adjusted EPS of 4.7p (2013: 9.9p) after restructuring charges.
Dividend raised 6% to 17p reflecting our confidence in our prospects.
2014 FULL YEAR OUTLOOK UNCHANGED
We reiterate the guidance we gave on 28 February 2014.
2014 profits to reflect portfolio changes (Penguin Random House associate accounting; Mergermarket sale; Grupo Multi acquisition) and significant strengthening of Sterling against key currencies.
Cyclical and policy-related pressures in our largest markets expected to persist, impacting revenues and margins.
Still expect approximately £50m net restructuring to continue to reshape our publishing businesses; £50m organic investment in structural growth opportunities in digital, services and emerging markets.
Based on 28 February 2014 exchange rates, we still expect to report adjusted earnings per share of between 62p and 67p in 2014.
