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BUSINESS SUMMARY Reed Elsevier plc

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Introduction

BUSINESS SUMMARY Reed Elsevier plc (formerly Reed International) operates publishing and information business through its 50% interest in Reed Elsevier Group plc. The company's activities include science and medical, legal, education and business publishing. Its principal operations are in North America and Europe. Reed Elsevier plc holds a 39% interest in Reed Elsevier Finance BV, with Reed Elsevier NV holding a 61% interest. The company's business provides products and services that are organized to serve four business sectors: * Elsevier serves the science and medical sector * Lexis Nexis, the legal sector * Harcourt Education, the education sector * Reed Business, the business-to-business sector. On June 30, 2004, Harcourt Education acquired Saxon Publishers, a publisher of skill based instructional material for pre-kindergarten through high school students in mathematics, phonics and early childhood learning. Share Performance Price (pence): 5.50 52 Week High: 5.67 Volume (millions) 8.7 52 Week Low: 4.61 Currency: GBP FINANCIAL SUMMARY For the six months ended 30 June 2005, Reed Elsevier Plc's revenue decreased 27% to 72M. ...read more.

Middle

A ratio of 1.00 means the company's long-term debt and equity are equal. The Total Debt/Equity Ratio includes long-term debt and short term debt. Profitability Dec'02 Dec'03 Dec'04 3 Year Average Gross Margin (%) 22.33 23.65 23.84 23.27 Operating Margin (%) 9.60 13.67 14.10 12.46 Net Profit Margin (%) 3.35 6.49 5.97 5.27 23.8 23.3 22.8 22.3 21.8 Dec'02 Dec'03 Dec'04 3 year Average Gross Profit (%) These ratios summarize overall profitability, or the bottom line Gross margin (%) 23.84(%) Gross profit x 100 607.00 x 100 Revenue 2,546.00 Gross margin shows the amount of revenue left over after deducting direct cost of producing the goods or services. Operating profit and operating margin trace the progress revenue down to another important level. From gross profit we now subtract, indirect costs, often referred to as overhead e.g. facilities and salaries associated with headquarters operations. Finally profit margin revenue dollar is left over all costs, of any kind are, subtracted. These other costs include such items as interest on debt and income taxes. ...read more.

Conclusion

A low payout ratio indicates that company has chosen to reinvest most of the profit back into the business. Per share data Dec'02 Dec'03 Dec'04 3 Year Ave Earnings Per Share 0.7 0.13 0.12 0.36 Sales Per Share 2.09 2.06 2.00 0.02 Book Value 1.10 1.02 0.95 (0.08) Cash Flow 0.29 0.32 0.29 0.04 0.134 0.112 0.091 0.070 0.049 Dec'02 Dec'03 Dec'04 The most important Per-share data item is Earnings per share. That's because ultimately, the price of your stock is related in some way to the value of the stream of earnings attributable to that share. Earnings Per Share 0.12 Adjusted income available to common shareholders 152.00 Diluted Weighted Average Shares 1,273.10 This section also includes the amount of Cash Per Share the company had at the time of its most recent quarterly or annual report. Most of the time, this number will be far below the stock price. In a healthy industrial company, a Cash Per Share figure that is close the stock price might suggest that investors are underestimating the worth of the company's ongoing business, thereby creating an interesting investment opportunities for you. ?? ?? ?? ?? REL REED ELSEVIER PLC (LONDON STOCK EXCHANGE) 1 ...read more.

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