As filed with the Securities and Exchange Commission on February 20, 2025
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended
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TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number:
(Exact name of Registrant as specified in its charter)
(Jurisdiction of incorporation or organisation)
(Address of principal executive offices)
(Name, telephone, e-mail and/or facsimile number and address of
Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of exchange on which registered |
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Listed, not for trading, but only in connection with the listing of the applicable Registrant’s American Depositary Shares issued in respect thereof. |
Securities registered or to be registered pursuant to Section 12(g) of the Act:
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of December 31, 2024:
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Number of outstanding shares |
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Ordinary shares of 14 51/116p each |
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer ☐ |
Non-accelerated filer ☐ |
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Emerging growth company
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If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. |
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† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. |
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If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. |
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Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). |
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Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing.
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US GAAP
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If “Other” has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow:
Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
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Auditor Firm Id : |
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Auditor Name : |
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Auditor Location : |
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TABLE OF CONTENTS
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ITEM 1: |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
N/A |
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ITEM 2: |
OFFER STATISTICS AND EXPECTED TIMETABLE |
N/A |
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ITEM 4A: |
UNRESOLVED STAFF COMMENTS |
N/A |
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17 |
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17 |
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25 |
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27 |
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ITEM 13: |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
N/A |
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ITEM 14: |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
N/A |
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2
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53 |
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55 |
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ITEM 16D: |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
N/A |
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PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
56 |
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ITEM 16F: |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
N/A |
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57 |
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ITEM 16H: |
MINE SAFETY DISCLOSURE |
N/A |
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ITEM 16I: |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
N/A |
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57 |
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58 |
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F-1 |
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F-1 |
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F-1 |
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F-2 |
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S-1 |
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S-3 |
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The registrant has responded to Item 18 in lieu of responding to this Item. |
3
GENERAL
RELX PLC is a public limited company, and owns all of the Group.
As used in this Annual Report on Form 20-F, the terms “Group”, “RELX”, “we”, “our” or “us” refer collectively to RELX PLC and its subsidiaries, associates and joint ventures. Additional terms are defined in the Glossary of Terms on pages S-1 and S-2.
In this Annual Report on Form 20-F, references to US dollars, $ and ¢ are to US currency; references to sterling, £, pound sterling, pence or p are to UK currency; references to euro and € are to the currency of the European Economic and Monetary Union.
Statements regarding our competitive position included herein were obtained from internal surveys, market research, publicly available information and industry publications. While we believe that the market research, publicly available information and industry publications we use are reliable, we have not independently verified market and industry data from third-party sources. Moreover, while we believe our internal surveys are reliable, they have not been verified by any independent source.
This document contains references to the RELX website, either within the document or incorporated by reference. Information not specifically stated as being incorporated by reference to the RELX website or any other website referenced is not incorporated into this document and should not be considered part of this document.
Pursuant to Rule 12b-23(a) of the US Securities Exchange Act of 1934, as amended (the “Exchange Act”), certain information in this Annual Report on Form 20-F is being incorporated herein by reference to our Annual Report for the year ended December 31, 2024 (the “RELX 2024 Annual Report”) appended hereto as Exhibit 15.2. With the exception of the items and pages so specified, the RELX 2024 Annual Report is not deemed to be filed as part of this Annual Report on Form 20-F. For the avoidance of doubt, other information mentioned in or contained within the RELX 2024 Annual Report, including the content of the RELX website and other pages or sections of the RELX 2024 Annual Report referenced, but not contained, in the items and pages so specified are not deemed to be filed as part of this Annual Report on Form 20-F.
5
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 20-F contains a number of forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act, with respect to, among others:
| ● | our financial condition; |
| ● | our results of operations; |
| ● | our competitive positions; |
| ● | the features and functions of and markets for the products and services we offer; and |
| ● | our business plans and strategies. |
We consider any statements that are not historical facts to be “forward-looking statements”. These statements are based on the current expectations of the management of the Group and are subject to risks and uncertainties that could cause actual results or outcomes to differ from those expressed in any forward-looking statement. These differences could be material; therefore, you should evaluate forward-looking statements in light of various important factors, including those set forth or incorporated by reference in this Annual Report on Form 20-F.
Important factors that could cause our actual results to differ materially from estimates or forecasts contained in the forward-looking statements include, among others:
| ● | regulatory and other changes regarding the collection or use of personal data; |
| ● | changes in law and legal interpretation affecting our intellectual property rights and internet communications; |
| ● | current and future geopolitical, economic and market conditions; |
| ● | changes in the payment model for our scientific, technical and medical research products or research integrity issues; |
| ● | competitive factors in the industries in which we operate and demand for our products and services; |
| ● | our inability to realise the future anticipated benefits of acquisitions; |
| ● | compromises of our cyber security systems or other unauthorised access to our databases; |
| ● | changes in economic cycles, trading relations, communicable disease epidemics or pandemics, severe weather events, natural disasters and terrorism; |
| ● | failure of third parties to whom we have outsourced business activities; |
| ● | significant failure or interruption of our systems; |
| ● | our inability to retain high-quality employees and management; |
| ● | changes in tax laws and uncertainty in their application; |
| ● | exchange rate fluctuations; |
| ● | adverse market conditions or downgrades to the credit ratings of our debt; |
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| ● | changes in the market values of defined benefit pension scheme assets and in the market related assumptions used to value scheme liabilities; |
| ● | breaches of generally accepted ethical business standards or applicable laws; |
| ● | failure to comply with consent orders by the US Federal Trade Commission (“FTC”); and |
| ● | other risks referenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission (the “SEC”), including the risks described in “Item 3: Key Information — Risk Factors”. |
The terms “outlook”, “estimate”, “forecast”, “project”, “plan”, “intend”, “expect”, “should”, “could”, “will”, “believe”, “trends” and similar expressions may indicate a forward-looking statement. Forward-looking statements are found at various places throughout this Annual Report on Form 20-F and the other information incorporated by reference in this Annual Report on Form 20-F.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 20-F. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Annual Report on Form 20-F or to reflect the occurrence of unanticipated events.
7
PART I
ITEM 3: KEY INFORMATION
RISK FACTORS
The principal and emerging risks facing our business are included below. Additional risks not presently known to us or that we currently deem immaterial may also impair our business.
EXTERNAL RISKS
Regulatory changes regarding the collection and use of personal data by us or compromises of our data privacy controls and other unauthorised access to our databases, could adversely affect our business and operations.
In the course of our business, we process personal data from customers, end users, employees and other sources. Certain business areas rely extensively upon content that includes personal data from public records, governmental authorities, publicly available information and media, and other information companies, including competitors. Changes in data privacy legislation, regulation, and/or enforcement could impact our ability to collect and use personal data, potentially affecting the availability and effectiveness of our products. Failure or perceived failure, by us, our customers or suppliers, to comply with requirements for proper collection, use, sharing, storage, transfer and other processing of personal data may damage our reputation, divert time and effort of management and other resources, increase cost of operations, and expose us to risk of loss, fines and penalties, litigation, and increased regulation.
Our intellectual property rights may not be adequately protected under current laws in some jurisdictions, which may adversely affect our business or financial performance and our ability to grow.
Our products and services include and utilise intellectual property. We rely on trademark, copyright, patent, trade secret and other intellectual property laws to establish and protect our proprietary rights in this intellectual property. There is a risk that our proprietary rights could be challenged, limited, invalidated, infringed, or circumvented, including by artificial intelligence “AI” technologies, which may impact demand for and pricing of our products and services. Copyright laws are subject to national legislative initiatives, as well as cross-border initiatives such as those from the European Commission and increased judicial scrutiny in several jurisdictions in which we operate. This creates additional challenges for us in protecting our proprietary rights in content delivered through the internet and electronic platforms.
Current and future geopolitical, economic and market conditions, and dislocations beyond our control may adversely affect demand for our products and services .
Demand for our products and services, and our ability to operate internationally, may be adversely impacted by geopolitical, economic and market conditions beyond our control. These include acts of war and civil unrest, political conflicts and tensions, international sanctions, economic cycles, the impact of the effect of changes in inflation and interest rates in major economies, trading relations between the United States, Europe, China and other major economies, as well as levels of government and private funding for our markets.
Changes in the payment model for our scientific, technical and medical primary research products or alternative publication channels for our content, as well as failing to maintain research integrity in these products could adversely affect our business or financial performance.
Our Scientific, Technical Medical (STM) primary research content publishing business operates under two payment models: ‘pay-to-read’, where readers or their institutions, as users of the content pay, and authors publish for free, or ‘pay-to-publish’, where authors or their institutions or funding bodies prefer to pay to publish their research, so it is freely available to read. The latter model is commonly referred to as Open Access and now represents a significant and growing portion of the volume of primary research that we publish. Rapid changes in customer choice, regulation or technologies in this area could impact the revenue mix and growth in our primary research publishing business. Maintaining research integrity requires us to manage risks around fraud in research papers in the context of evolving technologies.
8
STRATEGIC RISKS
We operate in a highly competitive and dynamic environment that is subject to rapid change and cannot assure you that there will be continued demand for our products and services.
Our businesses are dependent on the continued demand by our customers for our products and services and the value placed on them. We operate in highly competitive and dynamic markets, and the means of delivery, customer demand for, and the products and services themselves, continue to change in response to technological innovations, such as the use of AI, legislative and regulatory changes, the entrance of new competitors, and other factors. Failure to anticipate and quickly adapt to these changes, or to deliver enhanced value to our customers, could impact demand for our products and services and consequently adversely affect our revenue or the long-term returns from our investment in higher value-add information-based analytics and decision tools.
We may not realise all of the future anticipated benefits of acquisitions.
We supplement our organic development with selected acquisitions. If we are unable to generate the anticipated benefits such as revenue growth and/or cost savings associated with these acquisitions, it could adversely affect return on invested capital and financial condition or lead to an impairment of goodwill or intangibles.
OPERATIONAL RISKS
Compromises of our cybersecurity systems and other unauthorised access to our databases, could adversely affect our business and operations.
Our businesses maintain and use online databases and platforms delivering our products and services, which we rely on, and provide data to third parties, including customers and service providers. These databases and information are a target for compromise and face a risk of unauthorised access and use by unauthorised parties including through cyber, ransomware, malware and phishing and other social engineering attacks on us or our third-party service providers.
Our cybersecurity measures, and the measures used by our third-party service providers, may not detect or prevent all attempts to compromise our systems, which may jeopardise the security or integrity of the data we maintain or may disrupt our systems. Failures of our cybersecurity measures could result in unauthorised access to our systems, misappropriation of our or our users’ data, deletion or modification of stored information or other interruption to our business operations. As techniques used to obtain unauthorised access to or to sabotage systems change frequently and may not be known until launched against us or our third-party service providers we may be unable to anticipate or implement adequate measures to protect against these attacks and our service providers and customers may likewise be unable to do so.
Compromises of our or our third-party service providers’ systems could adversely affect our financial performance, damage our reputation and expose us to risk of loss, fines and penalties, litigation and increased regulation.
Changes in economic cycles, trading relations, communicable disease epidemics, severe weather events, natural disasters, terrorism, and lack of venues may impact our ability to organise events.
Face-to-face events are susceptible to economic cycles, changes in trading relations, communicable diseases, severe weather events and other natural disasters, terrorism and availability of venues. Each or any of these may impact our ability to hold face-to-face events, and exhibitors’ and visitors’ desire and ability to travel in person to events. These factors each have the potential to reduce revenues, increase the costs of organising events and adversely affect cash flows and reputation.
Our business may be adversely affected by the failure of third parties to whom we have outsourced business activities.
Our organisational and operational structures depend on suppliers including outsourced and offshored functions, as well as cloud service, software, and large language model providers. Poor performance, failure or breach of third parties to whom we have contracted could adversely affect our business performance, reputation and financial condition.
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We source content to enable information solutions for our professional customers. The disruption or loss of data sources, either because of regulations, or because data suppliers decide not to supply them, may impose limits on our collection and use of certain kinds of information and our ability to communicate, offer or make such information available or useful to our customers.
A significant failure or interruption of our electronic delivery platforms, networks, distribution systems or infrastructure could adversely affect our business and operations.
Our businesses are dependent on electronic platforms and networks, including our own and third-party data centres, cloud providers, network systems and the internet, for delivery of our products and services. These could be adversely affected if our electronic delivery platforms, networks or supporting infrastructure experience a significant failure or interruption.
We may be unable to implement and execute our strategic and business plans if we cannot recruit and retain skilled employees and management.
The implementation and execution of our strategies and business plans depend on our ability to recruit, motivate, develop, and retain a diverse population of skilled employees and management. We compete globally and across business sectors for diverse, talented management and skilled individuals, particularly those with technology and data analytics capabilities. An inability to recruit, motivate or retain such people could adversely affect our business performance.
FINANCIAL RISKS
Changes in tax laws or uncertainty over their application and interpretation may adversely affect our reported results.
Our businesses operate globally, and our profits are subject to taxation in many different jurisdictions and at differing tax rates. Tax laws and tax rates that currently apply to our businesses may be amended by the relevant authorities or interpreted differently by them, and these changes could adversely affect our reported results.
Fluctuations in exchange rates may affect our reported results.
The RELX PLC consolidated financial statements are expressed in pounds sterling and are subject to movements in exchange rates on the translation of the financial information of businesses whose operational currencies are other than sterling. The United States is our most important market and, accordingly, significant fluctuations in the US dollar exchange rate could significantly affect our reported results. We also earn revenues and incur costs in a range of other currencies, including the euro and the yen, and significant fluctuations in these exchange rates could also significantly impact our reported results.
Market conditions and credit ratings may affect the availability and cost of funding.
Macroeconomic, political and market conditions may adversely affect the availability and terms of short- and long-term funding, volatility of interest rates, the credit quality of our counterparties, currency exchange rates and inflation. The majority of our outstanding debt instruments are, and any of our future debt instruments may be, publicly rated by independent rating agencies. Our borrowing costs and access to capital may be adversely affected if the credit ratings assigned to our debt are downgraded.
Changes in the market values of defined benefit pension scheme assets and in the assumptions used to value defined benefit pension scheme obligations may adversely affect our business or financial performance.
We operate a number of pension schemes around the world, including local versions of the defined benefit type in the United Kingdom and the United States. The US scheme is closed to future accruals. The UK scheme has been closed to new hires since 2010. The members who continue to accrue benefits now represent a small and reducing portion of the overall UK based workforce. The assets and obligations associated with these pension schemes are sensitive to changes in the market values of the scheme’s investments and the market-related assumptions used to value scheme liabilities. Adverse changes to asset values, discount rates, longevity assumptions or inflation could increase funding requirements.
10
REPUTATIONAL RISKS
Breaches of generally accepted ethical business standards or applicable statutes concerning bribery, corruption, fraud, sanctions and competition could adversely affect our reputation and financial condition.
As a global provider of professional information solutions we, our employees, major suppliers and partners are expected to adhere to high standards of integrity and ethical conduct, including those related to anti-bribery and anti-corruption, data protection, fraud, sanctions, competition and principled business conduct. A breach of generally accepted ethical business standards or applicable laws could adversely affect our business performance, reputation, and financial condition.
REGULATORY RISKS
Our business, operations and reputation could be adversely affected by a failure to comply with FTC consent orders.
We are party to two consent orders entered into in 2006 and 2008 regarding our compliance with US federal laws governing consumer information and security-related issues, including certain fraudulent data access incidents. Failure to comply with these orders could result in civil penalties and adversely affect our business, operations and reputation.
11
ITEM 4: INFORMATION ON THE GROUP
BUSINESS OVERVIEW
RELX PLC is a public limited company, incorporated in England under the UK Companies Act 2006 (as amended) (the “Companies Act”).
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX serves customers in more than 180 countries and territories and has offices in about 40 countries. It employs more than 36,000 people, over 40% of whom are in North America.
We operate in four major market segments: Risk; Scientific, Technical Medical; Legal; and Exhibitions.
| ● | Risk provides customers with information-based analytics and decision tools that combine public and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency. |
| ● | Scientific, Technical Medical helps researchers and healthcare professionals advance science and improve health outcomes by combining high-quality scientific and medical information and trusted data sets with leading technology to deliver analytical tools that facilitate insights and critical decision-making. |
| ● | Legal helps its customers improve decision-making, achieve better outcomes and increase productivity by providing tools that combine legal, regulatory and business information with powerful analytics. |
| ● | Exhibitions combines industry expertise with data and digital tools to help customers connect face-to-face and digitally, learn about markets, source products and complete transactions. |
Information on revenue by geographical market is set forth in note 2 to our consolidated financial statements under the heading “Revenue, operating profit and segment analysis” on pages 146 to 149 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
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Revenue Year ended December 31, |
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2021 |
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2022 |
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2023 |
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2024 |
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(in millions, except percentages) |
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Risk |
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£ |
2,474 |
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34 |
% |
£ |
2,909 |
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34 |
% |
£ |
3,133 |
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34 |
% |
£ |
3,245 |
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35 |
% |
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Scientific, Technical Medical |
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2,649 |
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37 |
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2,909 |
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34 |
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3,062 |
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34 |
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3,051 |
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32 |
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Legal |
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1,587 |
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22 |
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1,782 |
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21 |
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1,851 |
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20 |
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1,899 |
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20 |
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Exhibitions |
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534 |
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7 |
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953 |
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11 |
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1,115 |
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12 |
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1,239 |
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13 |
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Total |
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£ |
7,244 |
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100 |
% |
£ |
8,553 |
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100 |
% |
£ |
9,161 |
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100 |
% |
£ |
9,434 |
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100 |
% |
RISK
The information set forth under the headings ‘Business overview’, ‘Market opportunities’, ‘Strategic priorities’ and ‘Business model, distribution channels and competition’ on pages 10 to 13 of the RELX 2024 Annual Report is incorporated herein by reference to Exhibit 15.2.
SCIENTIFIC, TECHNICAL MEDICAL
The information set forth under the headings ‘Business overview’, ‘Market opportunities’, ‘Strategic priorities’ and ‘Business model, distribution channels and competition’ on pages 16 to 19 of the RELX 2024 Annual Report is incorporated herein by reference to Exhibit 15.2.
12
LEGAL
The information set forth under the headings ‘Business overview’, ‘Market opportunities’, ‘Strategic priorities’ and ‘Business model, distribution channels and competition’ on pages 22 to 25 of the RELX 2024 Annual Report is incorporated herein by reference to Exhibit 15.2.
EXHIBITIONS
The information set forth under the headings ‘Business overview’, ‘Market opportunities’ and ‘Strategic priorities’ on pages 28 to 29 of the RELX 2024 Annual Report is incorporated herein by reference to Exhibit 15.2.
ORGANISATIONAL STRUCTURE
RELX PLC is a publicly held entity with its shares listed on the London, Amsterdam and New York stock exchanges.
Trading on the New York Stock Exchange is in the form of American Depositary Shares (“ADSs”) evidenced by American Depositary Receipts (“ADRs”) issued by Citibank N.A., as depositary.
Subsidiaries, Associates, Joint Ventures and Business Units
A list of subsidiaries, associates, joint ventures and business units is included as Exhibit 8.0 to this Annual Report on Form 20-F.
HISTORY AND DEVELOPMENT
Introduction
RELX PLC was originally incorporated in 1903. In 1993, RELX PLC combined with RELX NV by contributing their respective businesses into two jointly owned companies. In 2015, the structure was simplified so that all of the businesses were owned by one jointly controlled company, RELX Group plc. In 2018, the structure was further simplified whereby RELX NV merged into RELX PLC to form a single parent company, RELX PLC. RELX PLC owns 100% of the shares in RELX Group plc, which in turn owns all of the operating businesses, subsidiaries and financing activities of the Group.
Material acquisitions and disposals
Cash spent on acquisitions in 2022 was £460 million, in 2023 was £132 million and in 2024 was £175 million, excluding borrowings in acquired businesses of £3 million in 2022, nil in 2023 and nil in 2024, and including deferred consideration of £21 million in 2022, £16 million in 2023 and £5 million in 2024 on past acquisitions and investments in joint ventures and associates and venture capital investments of £66 million in 2022, £8 million in 2023 and £4 million in 2024.
Net cash inflow from disposals after separation and transaction costs was £3 million in 2022, £12 million in 2023 and £46 million in 2024.
Capital expenditure
Capital expenditure on property, plant, equipment and internally developed intangible assets principally relates to the development of electronic products and investment in systems infrastructure, computer equipment and office facilities. Total such capital expenditure, which was financed using cash flows generated from operations, amounted to £436 million, £477 million and £484 million in 2022, 2023 and 2024, respectively. The majority of capital expenditure is incurred in the United States, the United Kingdom and the Netherlands. In 2024, there was continued investment in new products and related infrastructure. Further information on capital expenditure is included in notes 2, 14 and 16 to the consolidated financial statements under the headings ‘Revenue, operating profit and segment analysis’, ‘Intangible assets’ and ‘Property, plant and equipment’ on pages 146, 165 and 168 respectively of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
13
Principal executive offices
The principal executive office of RELX PLC is located at 1-3 Strand, London WC2N 5JR, England. Tel: +44 20 7166 5500. The principal executive office of RELX PLC located in the United States is at 230 Park Avenue, New York, New York, 10169. Tel: +1 212 309 8100. Our internet address is www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F.
Our agent in the United States is The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.
PROPERTY, PLANT AND EQUIPMENT
We own or lease approximately 157 properties around the world as at December 31, 2024. The table below identifies the principal owned and leased properties in our property portfolio as at December 31, 2024.
|
|
|
|
|
Floor space |
|
Location |
|
Principal use(s) |
|
(square feet) |
|
Owned properties |
|
|
|
|
|
Alpharetta, Georgia |
|
Office and data centre |
|
406,000 |
|
Leased properties |
|
|
|
|
|
Miamisburg, Ohio |
|
Office and data centre |
|
137,249 |
|
Amsterdam, Netherlands |
|
Office |
|
133,474 |
|
Raleigh, North Carolina |
|
Office |
|
120,000 |
|
Horsham, Pennslyvania |
|
Office |
|
120,000 |
|
New York, New York |
|
Office |
|
116,541 |
All of the above properties are substantially occupied by RELX.
No property owned or leased by us which is considered material to us taken as a whole is currently subject to liabilities relating to environmental regulations and none has major encumbrances.
INTELLECTUAL PROPERTY
Our products and services include and utilise intellectual property content delivered through a variety of media, including online, journals and books. We rely on trademark, copyright, patent, trade secret and other intellectual property laws, as well as in some cases licensing arrangements with third parties, to establish and protect our proprietary rights in these products and services.
14
GOVERNMENT REGULATION
Certain of our businesses provide authorised customers with products and services such as access to public records and other information on individuals. Our businesses that provide such products and services are subject to increasing and evolving privacy, storage and transfer of data, data protection and consumer information laws and regulations, including US federal and state laws and regulations, UK laws and regulations, EU laws and regulations and laws and regulations of the EU member states. Our compliance obligations vary, and may include, among other things, reasonable data security programmes, submissions of regulatory reports, data localisation, providing individuals with certain notices and in some instances, limiting data or correcting inaccuracies in reports available through our products. From time to time, we respond in the ordinary course to inquiries and investigations from regulators who are charged with enforcing the laws and regulations applicable to our businesses. We are also subject to the terms of consent decrees and other settlements with certain regulators in the United States. See “Item 8: Financial Information — Legal Proceedings”.
Section 219 of the US Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”), which added Section 13(r) to the Exchange Act, requires disclosures regarding certain activities relating to Iran or with persons designated pursuant to various US Presidential Executive Orders. These disclosures are required even where the activities, transactions or dealings were conducted in compliance with applicable law. We engage in a limited amount of activity with Iran (a) through our non-US affiliates and businesses, as well as (b) pursuant to authorisations — in the form of exemptions or licenses — issued by the US government. We anticipate that similar transactions or dealings may occur in the future. The ownership or control of our customers in Iran is often difficult to determine with certainty.
During 2024,
| ● | our Scientific, Technical Medical business published open access and subscription articles by authors from, and provided subscriptions to online products and print publications to a number of universities, hospitals and other entities, including those listed below; |
| ● | our Risk business provided online subscription services and pricing reports to a number of oil, petrochemical and other companies, including those listed below; and |
| ● | our Exhibitions business provided exhibitions-related services to a number of exhibitors. |
Numerous Iranian nationals attended conferences organised by our Exhibitions and Risk business areas. Individuals located in Iran also subscribed to or purchased certain of our scientific, medical and technical publications. Many of these individuals are researchers, doctors or other professionals who have obtained subscriptions or purchased publications in their individual capacity, but who may be employed by government agencies in Iran or by hospitals, universities or other entities owned or controlled by the government of Iran. In addition, we work with authors, other contributors and journal editorial board members who are located in Iran, many of whom are employed at hospitals, universities or research institutions that are owned or controlled by the government of Iran. We also receive open access payments from authors located in Iran who pay us to make their articles publicly available. From time to time, we may employ or engage individuals in Iran to assist with transactions in Iran.
Our aggregate revenue attributable to these Iran-related activities was approximately £1.9 million during the fiscal year ended December 31, 2023 compared to £2.0 million during the fiscal year ended December 31, 2024. We do not customarily allocate net profit on a subscription-by-subscription, individual customer or country-by-country basis. However, we estimate that our net profit during the fiscal year attributable to these activities was 0.02% of our net profit reported in our income statement for the fiscal year ended December 31, 2023 compared to 0.02% for the fiscal year ended December 31, 2024.
Entities that transacted with our Scientific, Technical Medical Business Area in 2024
Babol Noshirvani University of Technology, Ferdowsi University of Mashhad, Iranian Research Institute for Information Science and Technology, Isfahan University of Technology, Islamic Azad University, Kermanshah University of Medical Sciences, Ministry of Science Research and Technology of the Islamic Republic of Iran, Semnan University, Shahid Beheshti University of Medical Sciences, Shiraz University, University of Tabriz, Urmia University of Medical Sciences.
15
Entities that transacted with our Risk Business Area in 2024
Amir Kabir Petrochemical Company, Bakhtar Commercial Company, Behran Oil Company, Fanavaran Petrochemical Company, Iran Chemical Industries Investment Company, Kharg Petrochemical Company, Polynar Corporation.
CLIMATE CHANGE
See the information set forth under the heading “Task Force on Climate-related Financial Disclosures” on pages 236-241 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
16
ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS
A discussion of our fiscal year ended December 31, 2022 may be found in “Item 5: Operating and Financial Review and Prospects” of our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on February 22, 2024.
OPERATING RESULTS
The following discussion is based on the consolidated financial statements of the Group for the two years ended December 31, 2023 and 2024 which have been prepared in accordance with IFRS as issued by the IASB.
The following discussion should be read in conjunction with, and is qualified by reference to, the consolidated financial statements on pages 140 to 186 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
The following tables analyse the Group’s revenue in each of the two years ended December 31, 2023 and 2024 by type, format and geographic market. We derive our revenue principally from subscriptions and transactional sales. Transactional sales include revenue from exhibitions. For additional information, see note 2 to the consolidated financial statements under the heading ‘Revenue, operating profit and segment analysis’ on pages 146 to 149 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Revenue by type
Year ended December 31,
|
|
|
2023 |
|
2024 |
|
||||||
|
|
|
(in millions, except percentages) |
|
||||||||
|
Subscriptions |
|
£ |
4,976 |
|
54 |
% |
£ |
5,025 |
|
53 |
% |
|
Transactional |
|
|
4,185 |
|
46 |
|
|
4,409 |
|
47 |
|
|
Total |
|
£ |
9,161 |
|
100 |
% |
£ |
9,434 |
|
100 |
% |
Revenue by format
Year ended December 31,
|
|
|
2023 |
|
2024 |
|
||||||
|
|
|
(in millions, except percentages) |
|||||||||
|
Electronic |
|
£ |
7,625 |
|
83 |
% |
£ |
7,824 |
|
83 |
% |
|
Face-to-face |
|
|
1,060 |
|
12 |
|
|
1,189 |
|
13 |
|
|
|
|
|
476 |
|
5 |
|
|
421 |
|
4 |
|
|
Total |
|
£ |
9,161 |
|
100 |
% |
£ |
9,434 |
|
100 |
% |
Revenue by geographic market
Year ended December 31,
|
|
|
2023 |
|
2024 |
|
||||||
|
|
|
(in millions, except percentages) |
|
||||||||
|
North America |
|
£ |
5,386 |
|
59 |
% |
£ |
5,495 |
|
58 |
% |
|
Europe |
|
|
1,908 |
|
21 |
|
|
2,025 |
|
22 |
|
|
Rest of world |
|
|
1,867 |
|
20 |
|
|
1,914 |
|
20 |
|
|
Total |
|
£ |
9,161 |
|
100 |
% |
£ |
9,434 |
|
100 |
% |
The cost profile of individual businesses within the Group varies and costs are controlled on an individual business unit basis. Our most significant cost item is staff costs. Staff costs, excluding cost of contractors and employer costs of benefits provided to employees but including amounts that are capitalised, increased from £3,108 million in 2023 to £3,120 million in 2024.
17
The following tables show revenue and adjusted operating profit for each of our business segments in each of the two years ended December 31, 2023 and 2024 together with the percentage change in 2023 and 2024 at both actual and constant currencies. We also show reported operating profit for the Group in each of the two years ended December 31, 2023 and 2024 together with the percentage change in 2023 and 2024 at actual currency. The effect of currency movements on the 2024 results is further described separately below (see “— Effect of Currency Translation” on page 25). Adjusted operating profit is included on the basis that it is the key segmental profit measure used by management to evaluate performance and allocate resources to the business segments, as reported under IFRS 8 — ‘Operating Segments’ in note 2 to the consolidated financial statements under the heading ‘Revenue, operating profit and segment analysis’ on pages 146 to 149 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2. Adjusted operating profit represents operating profit before amortisation of acquired intangible assets and acquisition and disposal related items, and is grossed up to exclude the equity share of finance income, finance costs and taxes in joint ventures and associates. A reconciliation of reported operating profit to adjusted operating profit is set out on page 20.
Revenue by segment, reported operating profit and adjusted operating profit by segment are as follows:
|
|
|
Revenue for the year ended |
|
||||||||
|
|
|
December 31 |
|
||||||||
|
|
|
2023 |
|
2024 |
|
% change |
|
||||
|
|
|
|
|
|
|
|
|
actual |
|
constant |
|
|
|
|
|
|
|
|
|
|
rates |
|
rates (1) |
|
|
|
|
(in millions, except percentages) |
|
||||||||
|
Risk |
|
£ |
3,133 |
|
£ |
3,245 |
|
+4 |
% |
+7 |
% |
|
Scientific, Technical Medical |
|
|
3,062 |
|
|
3,051 |
|
0 |
% |
+3 |
% |
|
Legal |
|
|
1,851 |
|
|
1,899 |
|
+3 |
% |
+6 |
% |
|
Exhibitions |
|
|
1,115 |
|
|
1,239 |
|
+11 |
% |
+16 |
% |
|
Total |
|
£ |
9,161 |
|
£ |
9,434 |
|
+3 |
% |
+6 |
% |
|
|
|
Reported operating profit for |
|
||||||
|
|
|
the year ended December 31 |
|
||||||
|
|
|
2023 |
|
2024 |
|
% change |
|
||
|
|
|
|
|
|
|
|
|
actual |
|
|
|
|
|
|
|
|
|
|
rates |
|
|
|
|
(in millions, except percentages) |
|
||||||
|
Reported operating profit |
|
£ |
2,682 |
|
£ |
2,861 |
|
+7 |
% |
|
|
|
Adjusted operating profit for the year ended December 31 |
|
||||||||
|
|
|
2023 |
|
2024 |
|
% change |
|
||||
|
|
|
|
|
|
|
|
|
actual |
|
constant |
|
|
|
|
|
|
|
|
|
|
rates |
|
rates (1) |
|
|
|
|
(in millions, except percentages) |
|
||||||||
|
Risk |
|
£ |
1,165 |
|
£ |
1,228 |
|
+5 |
% |
+9 |
% |
|
Scientific, Technical Medical |
|
|
1,165 |
|
|
1,172 |
|
+1 |
% |
+4 |
% |
|
Legal |
|
|
393 |
|
|
412 |
|
+5 |
% |
+8 |
% |
|
Exhibitions |
|
|
319 |
|
|
398 |
|
+25 |
% |
+32 |
% |
|
Subtotal |
|
£ |
3,042 |
|
£ |
3,210 |
|
|
|
|
|
|
Unallocated central costs and other operating items |
|
|
(12) |
|
|
(11) |
|
|
|
|
|
|
Total |
|
£ |
3,030 |
|
£ |
3,199 |
|
+6 |
% |
+9 |
% |
| (1) | Represents percentage change from 2023 to 2024 using constant currency. These rates were used in the preparation of the 2023 consolidated financial statements. |
18
Non-GAAP financial measures
RELX uses adjusted figures, which are not defined by generally accepted accounting principles (“GAAP”) such as IFRS. Adjusted figures and underlying growth rates are presented as additional performance measures used by management, as they provide relevant information in assessing the Group’s performance, position and cash flows. We believe that these measures enable investors to track more clearly the core operational performance of the Group by separating out items of income or expenditure relating to acquisitions, disposals and capital items, and by excluding items treated as exceptional, when applicable. This provides our investors with a clear basis for assessing our ability to raise debt and invest in new business opportunities.
Management uses these financial measures, along with IFRS financial measures, in evaluating the operating performance of the Group as a whole and of the individual business segments. Adjusted financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS. The measures may not be directly comparable to similarly reported measures by other companies.
The adjusted and underlying financial measures used in the results of operations discussion on pages 21 to 24 are: underlying revenue growth, adjusted operating profit, underlying adjusted operating profit growth, adjusted operating margin, adjusted net profit attributable to shareholders and adjusted earnings per share. These measures as well as certain other metrics are defined in the Glossary of Terms beginning on page S-1.
Underlying revenue and adjusted operating profit growth rates are calculated at constant currency, excluding the results of acquisitions until twelve months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude the effects of exhibition cycling.
Adjusted operating profit excludes amortisation of acquired intangible assets and acquisition and disposal related items, and is grossed up to exclude the equity share of finance income, finance costs and taxes in joint ventures and associates.
Adjusted operating margin is calculated as adjusted operating profit divided by revenue.
Adjusted net profit attributable to shareholders excludes amortisation of acquired intangible assets, other deferred tax credits from intangible assets and items treated as exceptional, acquisition and disposal related items, net interest on the net defined benefit pension balance, disposals and other non-operating items. Adjusted earnings per share is calculated by dividing adjusted net profit attributable to shareholders by the total weighted average number of shares.
Reconciliations of all non-GAAP financial measures to the most directly comparable measure reported under IFRS are set forth in the tables below. In the tables below and the results of operations commentary that follows, percentage movements are calculated using the average exchange rates for the period unless otherwise stated.
19
The calculations of the year-on-year changes in reported revenue and underlying revenue growth are presented below:
|
|
|
Revenue |
|
||
|
|
|
£m |
|
% change |
|
|
Year to December 31, 2022 |
|
8,553 |
|
+18 |
% |
|
Underlying revenue growth (1) |
|
635 |
|
+8 |
% |
|
Exhibition cycling |
|
(52) |
|
-1 |
% |
|
Acquisitions |
|
28 |
|
0 |
% |
|
Disposals |
|
(18) |
|
0 |
% |
|
Currency effects |
|
15 |
|
0 |
% |
|
Year to December 31, 2023 |
|
9,161 |
|
+7 |
% |
|
Underlying revenue growth (1) |
|
569 |
|
+7 |
% |
|
Exhibition cycling |
|
69 |
|
0 |
% |
|
Acquisitions |
|
15 |
|
0 |
% |
|
Disposals |
|
(89) |
|
-1 |
% |
|
Currency effects |
|
(291) |
|
-3 |
% |
|
Year to December 31, 2024 |
|
9,434 |
|
+3 |
% |
| (1) | Represents the year-on-year movement in reported revenue excluding the impact of the adjustments set forth in the table. |
Adjusted operating profit reconciles to reported operating profit as follows:
|
|
|
2023 |
|
2024 |
||
|
|
|
(in millions) |
||||
|
Reported operating profit |
|
£ |
2,682 |
|
£ |
2,861 |
|
Adjustments: |
|
|
|
|
|
|
|
Amortisation of acquired intangible assets |
|
|
280 |
|
|
258 |
|
Acquisition and disposal related items |
|
|
56 |
|
|
69 |
|
Reclassification of tax in joint ventures and associates |
|
|
12 |
|
|
12 |
|
Reclassification of finance income in joint ventures and associates |
|
|
— |
|
|
(1) |
|
Adjusted operating profit |
|
£ |
3,030 |
|
£ |
3,199 |
The calculations of the year-on-year changes in adjusted operating profit and underlying adjusted operating profit growth are presented below:
|
|
|
Adjusted operating profit |
|
||
|
|
|
£m |
|
% change |
|
|
Year to December 31, 2022 |
|
2,683 |
|
+21 |
% |
|
Underlying adjusted operating profit growth (1) |
|
335 |
|
+13 |
% |
|
Acquisitions |
|
(8) |
|
-1 |
% |
|
Disposals |
|
(3) |
|
0 |
% |
|
Currency effects |
|
23 |
|
+1 |
% |
|
Year to December 31, 2023 |
|
3,030 |
|
+13 |
% |
|
Underlying adjusted operating profit growth (1) |
|
287 |
|
+10 |
% |
|
Acquisitions |
|
2 |
|
0 |
% |
|
Disposals |
|
(12) |
|
-1 |
% |
|
Currency effects |
|
(108) |
|
-3 |
% |
|
Year to December 31, 2024 |
|
3,199 |
|
+6 |
% |
| (1) | Represents the year-on-year movement in adjusted operating profit excluding the impact of the adjustments set forth in the table. |
20
Adjusted net profit attributable to shareholders reconciles to reported net profit attributable to shareholders as follows, and the calculations of earnings per share and adjusted net profit per share are presented below:
|
2023 |
|
Pre-tax |
|
Tax on |
|
|
|
|
|
adjustment |
|
adjustment |
|
Total |
|
|
|
£m |
|
£m |
|
£m |
|
Net profit attributable to shareholders |
|
|
|
|
|
1,781 |
|
Adjustments: |
|
|
|
|
|
|
|
Amortisation of acquired intangible assets |
|
280 |
|
32 |
|
312 |
|
Other deferred tax credits from intangible assets* |
|
— |
|
(61) |
|
(61) |
|
Acquisition and disposal related items |
|
56 |
|
(8) |
|
48 |
|
Net interest on net defined benefit pension balance |
|
1 |
|
— |
|
1 |
|
Loss on disposals and other non‑operating items |
|
72 |
|
3 |
|
75 |
|
Adjusted net profit attributable to shareholders |
|
|
|
|
|
2,156 |
|
2024 |
|
Pre-tax |
|
Tax on |
|
|
|
|
|
adjustment |
|
adjustment |
|
Total |
|
|
|
£m |
|
£m |
|
£m |
|
Net profit attributable to shareholders |
|
|
|
|
|
1,934 |
|
Adjustments: |
|
|
|
|
|
|
|
Amortisation of acquired intangible assets |
|
258 |
|
32 |
|
290 |
|
Other deferred tax credits from intangible assets* |
|
— |
|
(56) |
|
(56) |
|
Acquisition and disposal related items |
|
69 |
|
(14) |
|
55 |
|
Net interest on net defined benefit pension balance |
|
1 |
|
— |
|
1 |
|
Loss on disposals and other non‑operating items |
|
6 |
|
11 |
|
17 |
|
Adjusted net profit attributable to shareholders |
|
|
|
|
|
2,241 |
*Movements on deferred tax liabilities arising on acquired intangible assets that do not qualify for tax amortisation.
|
|
|
2023 |
2024 |
|||||||||
|
|
|
Net |
|
Weighted |
|
|
|
Net |
|
Weighted |
|
|
|
|
|
profit |
|
average |
|
|
|
profit |
|
average |
|
|
|
|
|
attributable to |
|
number |
|
|
|
attributable to |
|
number |
|
|
|
|
|
shareholders |
|
of shares |
|
EPS |
|
shareholders |
|
of shares |
|
EPS |
|
|
|
£m |
|
(millions) |
|
(pence) |
|
£m |
|
(millions) |
|
(pence) |
|
Basic earnings per share |
|
1,781 |
|
1,891.8 |
|
94.1p |
|
1,934 |
|
1,865.9 |
|
103.6p |
|
|
|
2023 |
2024 |
|||||||||
|
|
|
Adjusted net |
|
Weighted |
|
|
|
Adjusted net |
|
Weighted |
|
|
|
|
|
profit |
|
average |
|
|
|
profit |
|
average |
|
|
|
|
|
attributable to |
|
number |
|
Adjusted |
|
attributable to |
|
number |
|
Adjusted |
|
|
|
shareholders |
|
of shares |
|
EPS |
|
shareholders |
|
of shares |
|
EPS |
|
|
|
£m |
|
(millions) |
|
(pence) |
|
£m |
|
(millions) |
|
(pence) |
|
Adjusted earnings per share |
|
2,156 |
|
1,891.8 |
|
114.0p |
|
2,241 |
|
1,865.9 |
|
120.1p |
Results of Operations for the Year Ended December 31, 2024
Compared to the Year Ended December 31, 2023
Reported revenue was up 3% from £9,161 million in 2023 to £9,434 million in 2024. Underlying revenue growth was 7%, with all four market segments contributing to underlying growth. The underlying growth rate reflects growth in electronic revenue of 7% with strong growth in face-to-face revenues, offsetting the print decline. Risk continued to deliver strong growth, STM maintained its improved growth, Legal growth continued to improve and Exhibitions saw strong growth. The impact of currency movements was
21
to decrease revenue by 3%. At group level, the impact on revenue of disposals more than offset that of acquisitions and the benefit of exhibition cycling effects, giving total revenue growth at constant currency of 6%.
Reported operating costs, which comprises cost of sales, selling and distribution costs, and administration and other expenses, were up 1% from £6,525 million in 2023 to £6,616 million in 2024. Cost of sales was up 3% from £3,216 million in 2023 to £3,300 million in 2024, selling and distribution costs were consistent being £1,459 million in 2023 to £1,470 million in 2024 and administration and other expenses were consistent being £1,850 million in 2023 to £1,846 million in 2024. The increase reflects the investment in global technology platforms, the launch of new products and services and the increased activity levels within Exhibitions, partly offset by the benefits of continued process innovation. Actions continue to be taken across the group to improve cost efficiency.
Reported operating profit, which includes amortisation of acquired intangible assets and acquisition and disposal related items, was up 7% from £2,682 million in 2023 to £2,861 million in 2024 primarily reflecting the increase in adjusted operating profit and a lower amortisation charge in respect of acquired intangible assets. Adjusted operating profit was up 6% from £3,030 million in 2023 to £3,199 million in 2024.
The reported operating margin was up from 29.3% in 2023 to 30.3% in 2024. The overall adjusted operating margin increased 0.8 percentage points from 33.1% in 2023 to 33.9% in 2024. On an underlying basis, including cycling effects, the margin improved by 0.8 percentage points, while portfolio changes improved margin by 0.1 percentage points and currency movements decreased margin by 0.1 percentage points.
Depreciation of property, plant and equipment and amortisation of internally developed intangible assets increased from £373 million in 2023 to £398 million. Depreciation of right-of-use assets decreased from £65 million in 2023 to £50 million in 2024.
The amortisation charge in respect of acquired intangible assets, including the share of amortisation in joint ventures and associates, decreased from £280 million in 2023 to £258 million in 2024.
Acquisition and disposal related costs increased from £56 million in 2023 to £69 million in 2024, due to restructuring costs incurred following the disposal of some of our assets.
Reported net finance costs decreased from £315 million in 2023 to £298 million in 2024 as the prior year included a charge of £26 million in respect of early redemption of bonds. This includes the net financing charge on defined benefit pension schemes, which remained consistent at £1 million in 2023 and 2024.
Reported profit before tax was up 11% from £2,295 million in 2023 to £2,557 million in 2024 reflecting the improvement in reported operating profit, the lower interest expense, and the prior year including an impairment charge for some assets held for sale.
The reported tax charge increased from £507 million in 2023 to £613 million in 2024 including tax associated with the amortisation of acquired intangible assets, disposals and other non-operating items. The 2023 charge benefitted from non-recurring tax credits arising from the resolution of certain historical tax matters.
The reported net profit attributable to shareholders was up 9% from £1,781 million in 2023 to £1,934 million in 2024. The adjusted net profit attributable to shareholders was up 4% from £2,156 million in 2023 to £2,241 million in 2024.
The reported earnings per share increased by 10% from 94.1p in 2023 to 103.6p in 2024. Adjusted earnings per share increased by 5% from 114.0p in 2023 to 120.1p in 2024. At constant currency, adjusted earnings per share increased by 9%.
Ordinary dividends paid to shareholders in 2023, being the 2022 final and 2023 interim dividend, amounted to £1,059 million. Ordinary dividends paid to shareholders in 2024, being the 2023 final and 2024 interim dividend, amounted to £1,121 million.
The final dividend proposed by the Board increased from 41.8p in 2023 to 44.8p per share in 2024. Total dividends for the year increased 7% from 58.8p in 2023 to 63.0p in 2024.
22
During 2024, a total of 28.9 million RELX PLC shares were repurchased at an average price of 3,461p. Total consideration for these repurchases was £1,000 million. A further 2.2 million shares were purchased by the Employee Benefit Trust. As at December 31, 2024, total shares in issue, net of shares held in treasury and shares held by the Employee Benefit Trust, amounted to 1,855.9 million. A further 3.8 million shares have been repurchased in 2025 as at February 12, 2025.
Risk: 2024 financial performance
|
|
|
2023 |
|
2024 |
|
Underlying |
|
Portfolio |
|
Currency |
|
Total |
|
|
|
|
£m |
|
£m |
|
growth |
|
changes |
|
effects |
|
growth |
|
|
Revenue |
|
3,133 |
|
3,245 |
|
+8 |
% |
-1 |
% |
-3 |
% |
+4 |
% |
|
Adjusted operating profit |
|
1,165 |
|
1,228 |
|
+9 |
% |
0 |
% |
-4 |
% |
+5 |
% |
Strong fundamentals continuing to drive underlying revenue growth.
Reported revenue growth was +4%. Underlying revenue growth of +8%. Strong growth continues to be driven across segments by our deeply embedded, AI-enabled analytics and decision tools.
Adjusted operating profit growth was +5%. Underlying adjusted operating profit growth was +9%, leading to an increase in adjusted operating margin.
Business Services growth continued to be driven by Financial Crime Compliance and digital Fraud Identity solutions, with strong new sales.
Insurance growth was driven by the further extension of solution sets across insurance markets, as well as continued positive market factors and new sales.
Specialised Industry Data Services growth was led by Commodity Intelligence, and Government growth continued to be driven by the development and roll-out of analytics and decision tools.
Scientific, Technical Medical: 2024 financial performance
|
|
|
2023 |
|
2024 |
|
Underlying |
|
Portfolio |
|
Currency |
|
Total |
|
|
|
|
£m |
|
£m |
|
growth |
|
changes |
|
effects |
|
growth |
|
|
Revenue |
|
3,062 |
|
3,051 |
|
+4 |
% |
-1 |
% |
-3 |
% |
0 |
% |
|
Adjusted operating profit |
|
1,165 |
|
1,172 |
|
+5 |
% |
-1 |
% |
-3 |
% |
+1 |
% |
Development of analytics continuing to drive underlying revenue growth.
Reported revenue growth was 0%. Underlying revenue growth was +4%. Good growth continues to be driven by the evolution of the business mix, with higher growth segments representing an increasing proportion of divisional revenue, and remaining print shrinking at a faster pace than historical averages.
Adjusted operating profit growth was +1%. Underlying adjusted operating profit growth was +5%, resulting in an increase in adjusted operating margin.
Databases, Tools Electronic Reference growth continued to be driven by higher value-add analytics and decision tools.
Primary Research growth continued to be driven by volume growth, with article submissions growing very strongly across the portfolio, particularly in pay-to-publish.
23
Legal: 2024 financial performance
|
|
|
2023 |
|
2024 |
|
Underlying |
|
Portfolio |
|
Currency |
|
Total |
|
|
|
|
£m |
|
£m |
|
growth |
|
changes |
|
effects |
|
growth |
|
|
Revenue |
|
1,851 |
|
1,899 |
|
+7 |
% |
-1 |
% |
-3 |
% |
+3 |
% |
|
Adjusted operating profit |
|
393 |
|
412 |
|
+9 |
% |
-1 |
% |
-3 |
% |
+5 |
% |
Further improvement in underlying revenue growth driven by legal analytics.
Reported revenue growth was +3%. Underlying revenue growth improved to +7%. Strong growth continues to be driven by the shift in business mix towards higher growth, higher value legal analytics and tools.
Adjusted operating profit growth was +5%. Underlying adjusted operating profit growth was +9%, as we continue to manage underlying cost growth below underlying revenue growth, leading to a further improvement in adjusted operating margin.
Lexis+, our integrated platform leveraging extractive AI, continued to perform well. Lexis+ AI, additionally leveraging generative AI, continued its successful roll-out in the US and launched in international markets. Protégé, our recently launched next generation generative AI legal assistant, has been positively received by customers.
Government Academic and News Business growth continued to be driven by the further extension of analytics and decision tools.
Renewals and new sales remain strong across all key segments.
Exhibitions: 2024 financial performance
|
|
|
2023 |
|
2024 |
|
Underlying |
|
Portfolio |
|
Currency |
|
Total |
|
|
|
|
£m |
|
£m |
|
growth |
|
changes |
|
effects |
|
growth |
|
|
Revenue (1) |
|
1,115 |
|
1,239 |
|
+11 |
% |
+5 |
% |
-5 |
% |
+11 |
% |
|
Adjusted operating profit |
|
319 |
|
398 |
|
+31 |
% |
+1 |
% |
-7 |
% |
+25 |
% |
| (1) | Portfolio changes includes cycling effects of +6% |
Strong underlying revenue growth and profitability improvement.
Reported revenue growth was +11%. Underlying revenue growth was +11%, reflecting the improved growth profile of our event portfolio and a favourable first half comparison to the prior year.
Adjusted operating profit growth was +25%. Underlying adjusted operating profit growth was +31%.
We continue to make good progress on value-enhancing digital initiatives, with increased usage of a growing range of digital tools for the customers of our face-to-face events.
The improvement in profitability reflects the structurally lower cost base of the streamlined event portfolio.
Critical Accounting Policies
The accounting policies of the Group under IFRS as issued by the IASB are described within the relevant notes to the consolidated financial statements as set forth on pages 145 to 186 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2. The most critical accounting policies and estimates used in determining the financial condition and results of the Group, and those requiring the most subjective or complex judgments, relate to capitalisation of development spend and accounting for defined benefit pension obligations.
The Audit Committee of RELX PLC has reviewed the development and selection of critical accounting estimates, and the disclosure of critical accounting policies in the financial statements.
24
Effect of Currency Translation
The consolidated financial statements are expressed in sterling and are therefore subject to the impact of movements in exchange rates on the translation of the financial information of individual businesses whose operational currencies are other than sterling. The principal exposures in relation to the results reported in sterling are to the US dollar and the euro, reflecting our business exposure to the United States and the European Economic and Monetary Union, our most important markets. Some of these exposures are offset by denominating debt in US dollars and euros.
Individual businesses are subject to foreign exchange transaction exposures caused by the effect of exchange rate movements on their revenue and operating costs, to the extent that such revenue and costs are not denominated in their functional currencies. Individual businesses generally hedge their exposures at market rates through the centralised treasury department. Hedging of foreign exchange transaction exposure is the only hedging activity undertaken by the individual businesses. For further details see note 17 to the consolidated financial statements as set forth on pages 169 to 175 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Compared to 2023, currency differences decreased the Group’s revenue by £291 million in 2024. Acquired intangible asset amortisation and acquisition and disposal related items are predominantly denominated in US dollars and, after these charges, currency differences decreased operating profit by £100 million. The majority of our debt is denominated in US dollars and euros and after charging net finance costs, currency differences decreased profit before tax by £97 million in 2024.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements are included in note 1 to the consolidated financial statements under the heading ‘Basis of preparation and accounting policies’ on pages 145 to 146 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
Cash flows from operating activities
The Group’s cash generated from operations increased from £3,370 million in 2023 to £3,521 million in 2024. Included in these net cash inflows are cash outflows, including acquisition and disposal related items, which increased from £56 million in 2023 to £62 million in 2024. A substantial proportion of revenue is received through subscription and similar advanced receipts, principally for scientific and medical journals. At December 31, 2024 subscriptions and other revenues received in advance increased from £2,297 million in 2023 to £2,328 million in 2024. The Group paid tax of £619 million in 2023 and £662 million in 2024, which was higher than the income statement charge, with the difference reflecting timing of tax payments.
Cash flows from investing activities
The Group’s cash outflow on the purchase of property, plant and equipment decreased from £30 million in 2023 to £20 million in 2024 while proceeds from the sale of property, plant and equipment decreased from £7 million in 2023 to nil in 2024. The cash outflow on internally developed intangible assets increased from £447 million in 2023 to £464 million in 2024, reflecting sustained investment in new products.
During 2023, the Group paid a total of £132 million for acquisitions, including deferred consideration of £16 million on past acquisitions and investments in joint ventures and associates and venture capital investments of £8 million. During 2024, the Group paid a total of £175 million for acquisitions, including deferred consideration of £5 million on past acquisitions and investments in joint ventures and associates and venture capital investments of £4 million.
25
Cash flows from financing activities
30.9 million shares were repurchased by RELX PLC in 2023 for total consideration of £800 million. 28.9 million shares were repurchased by RELX PLC in 2024 for total consideration of £1,000 million, with a further £150 million repurchased in 2025 as at February 12, 2025. In addition, the Employee Benefit Trust purchased shares of RELX PLC to meet future obligations in respect of share based remuneration totalling £50 million and £75 million in 2023 and 2024, respectively. Proceeds from the exercise of share options increased from £41 million in 2023 to £47 million in 2024.
During 2023 and 2024, the Group paid ordinary dividends totalling £1,059 million and £1,121 million, respectively, to shareholders of RELX PLC. Dividend payments are funded by the operating cash flow of the business after capital spend.
Debt
Debt as at December 31, 2023 and December 31, 2024 was £6,497 million and £6,544 million, respectively. Net debt, used in assessing the Group’s financial position was £6,446 million as at December 31, 2023 and £6,563 million as at December 31, 2024, comprising gross bank and bond borrowings of £6,441 million and lease liabilities under IFRS 16 of £103 million, plus £140 million of related derivative financial instrument liabilities, less cash and cash equivalents of £119 million and finance lease receivables of £2 million. Excluding currency translation effects, net debt increased in 2024 by £163 million.
Net debt is reconciled as follows:
|
As at December 31 |
|
2023 |
|
2024 |
|
|
|
£m |
|
£m |
|
Cash cash equivalents |
|
155 |
|
119 |
|
Debt |
|
(6,497) |
|
(6,544) |
|
Related derivative financial instruments |
|
(108) |
|
(140) |
|
Finance lease receivables |
|
4 |
|
2 |
|
Net debt |
|
(6,446) |
|
(6,563) |
Liquidity
In March 2024, €850 million of euro denominated term debt was issued with a coupon of 3.375% and a maturity of nine years.
The Group believes that it has ample liquidity and access to debt capital markets, providing the ability to repay or refinance debt as it matures and to fund ongoing requirements. This includes access to a $3.0 billion committed bank facility which provides security of funding for short-term debt, which was undrawn at December 31, 2024. In March 2024 the maturity date of the facility was extended to April 2027.
Contractual Obligations
The contractual obligations of the Group relating to debt and leases at December 31, 2024 analysed by when payments are due, are summarised below.
|
|
|
|
|
|
Less than |
|
|
|
|
|
|
|
After 5 |
||
|
|
|
Total |
|
1 year |
|
1-3 years |
|
3-5 years |
|
years |
|||||
|
|
|
|
(in millions) |
||||||||||||
|
Short-term debt (1)(2) |
|
£ |
(1,432) |
|
£ |
(1,432) |
|
|
— |
|
|
— |
|
|
— |
|
Long-term debt (2) |
|
|
(6,145) |
|
|
(136) |
|
|
(1,344) |
|
|
(1,659) |
|
|
(3,006) |
|
Total |
|
£ |
(7,577) |
|
£ |
(1,568) |
|
£ |
(1,344) |
|
£ |
(1,659) |
|
£ |
(3,006) |
| (1) | Short-term debt primarily comprises term debt issues maturing within one year and commercial paper, and is supported by the $3.0 billion committed bank facility maturing in April 2027 and by the central management of cash and cash equivalents. At December 31, 2024 the committed bank facility was undrawn. |
26
| (2) | Short and long-term debt obligations comprise undiscounted principal and interest cash flows. Interest cash flows are calculated by reference to the contractual payment dates and the fixed interest rates (for fixed rate debt) or the relevant forecast interest rates (for floating rate debt). |
Information on retirement benefit obligations is set forth in note 6 to the consolidated financial statements under the heading ‘Pension schemes’ on pages 152 to 156 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Off-Balance Sheet Arrangements
Except as disclosed above under “Contractual Obligations”, we have no off-balance sheet arrangements that currently have or are reasonably likely to have a material effect on RELX’s financial condition, results of operations, liquidity, capital expenditure or capital resources.
Treasury Policies
The main treasury risks faced by the Group are liquidity risk, interest rate risk, foreign currency risk and credit risk. The Board agrees overall policy guidelines for managing each of these risks. A summary of these policies is provided in note 17 to the consolidated financial statements under the heading ‘Financial Instruments’ on pages 169 to 175 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Financial instruments are used to finance our business and to hedge transactions. We do not enter into speculative derivative transactions.
Capital and Liquidity Management
The capital structure is managed to support the Group’s objective of maximising long-term shareholder value through appropriate security of funding, ready access to debt and capital markets, cost-effective borrowing and flexibility to fund business and acquisition opportunities while maintaining appropriate leverage to ensure an efficient capital structure.
Over the long-term, the Group seeks to maintain cash flow conversion of 90% or higher and credit rating agency metrics that are consistent with a solid investment grade credit rating.
RELX uses the cash flow it generates to fund capital expenditure required to drive organic growth, to make selective acquisitions and to provide a growing dividend to shareholders, while retaining balance sheet strength to maintain access to cost-effective sources of borrowing. Share repurchases are undertaken to maintain an efficient balance sheet.
Further detail on our capital and liquidity management, including material cash requirements and other material commitments, is provided in note 17 to the consolidated financial statements under the heading ‘Financial Instruments’ on pages 169 to 175 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
SHORT-TERM DEBT
The Group operates a number of commercial paper programmes that provide flexibility for funding operational requirements on a daily basis, at short notice and at competitive rates. Commercial paper is issued under both US and Euro programmes and guaranteed by RELX PLC. In addition, short-term borrowing facilities are established with local banks to support the daily requirements of businesses operating in certain countries where there may be restrictions on borrowing from affiliates. Term debt in the table below consists of debt with an original maturity of greater than one year and which mature within 12 months of the reporting date. This short-term debt was backed up at December 31, 2024 by the $3.0 billion committed bank facility maturing in 2027. This facility was undrawn at December 31, 2024. The short-term debt programmes are run in conjunction with term debt programmes which comprise the majority of our debt and provide the Group with security of funding.
27
The average amount and the average interest rate during the year have been calculated by taking the average of the amounts outstanding at each month end (translated to sterling at the respective month end rate) and the average of the interest rate applicable at each month end. Commercial paper issuance reached a maximum month end level of £1,256 million in September 2024 following cash outflows in respect of shareholder dividends and share repurchases, and short-term loans and overdrafts reached a maximum month end level of £81 million in December 2024 as a result of movements in trading cash flows. Term debt reached a maximum month end level of £1,026 million in January and February 2024 as the maturity of the €700 million and €500 million term debt issues both expiring in March 2024 were below 12 months.
Lease liabilities have been excluded from the balances below.
|
|
|
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
|
|
|
Weighted |
|
|
|
|
Weighted |
|
|
|
|
|
|
average |
|
|
|
|
average |
|
|
|
2023 |
|
interest |
|
2024 |
|
interest |
||
|
Short-term debt as at December 31, |
|
(in millions) |
|
rate % |
|
(in millions) |
|
rate % |
||
|
Commercial paper |
|
£ |
179 |
|
5.5 |
|
£ |
681 |
|
4.2 |
|
Short-term loans and overdrafts |
|
|
41 |
|
5.6 |
|
|
81 |
|
4.7 |
|
Term debt |
|
|
1,036 |
|
1.9 |
|
|
612 |
|
6.4 |
|
Total short-term debt |
|
£ |
1,256 |
|
— |
|
£ |
1,374 |
|
— |
|
|
|
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
|
|
|
Weighted |
|
|
|
|
Weighted |
|
|
|
|
|
|
average |
|
|
|
|
average |
|
|
|
2023 |
|
interest |
|
2024 |
|
interest |
||
|
Average short-term debt during the year ended December 31, |
|
(in millions) |
|
rate % |
|
(in millions) |
|
rate % |
||
|
Commercial paper |
|
£ |
241 |
|
5.2 |
|
£ |
707 |
|
4.7 |
|
Short-term loans and overdrafts |
|
|
83 |
|
6.5 |
|
|
54 |
|
5.1 |
|
Term debt |
|
£ |
1,061 |
|
2.6 |
|
£ |
585 |
|
5.3 |
|
|
|
2023 |
|
2024 |
||
|
Maximum month end short-term debt |
|
(in millions) |
|
(in millions) |
||
|
Commercial paper |
|
£ |
511 |
|
£ |
1,256 |
|
Short-term loans and overdrafts |
|
|
103 |
|
|
81 |
|
Term debt |
|
£ |
1,189 |
|
£ |
1,026 |
TREND INFORMATION
Material trends, uncertainties and events which can affect the revenue, operating profit and liquidity and capital resources of RELX include the usage, penetration and customer renewal of our products and the prices that customers pay for our products, the migration of products to online services, investment in new products and services, cost control and the impact of our cost reduction programmes on operational efficiency, the levels of legal industry and academic library funding, the impact of economic conditions on corporate and other customer budgets, the actions of competitors and regulatory, legislative and legal developments.
Trends, uncertainties and events which could have a material impact on our revenue, operating profit and liquidity and capital resources are discussed in further detail in “Item 3: Key Information — Risk Factors”; “Item 4: Information on the Group”; and “Item 5: Operating and Financial Review and Prospects — Operating Results; Liquidity and Capital Resources”.
RESEARCH AND DEVELOPMENT
In 2023 and 2024 RELX spent £447 million and £464 million, respectively, in respect of capitalised development costs. This reflects sustained investment in new products. This expenditure was mainly incurred in the United States, the United Kingdom and the Netherlands. For additional information, see note 14 to the consolidated financial statements under the heading ‘Intangible assets’ on pages 165 to 167 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
28
ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
DIRECTORS
The information on the Directors of RELX PLC as at February 20, 2025 is set forth under the heading ‘Board Directors’ on pages 82 to 83 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
As a general rule, Non-Executive Directors serve for an initial term of three years, and are typically expected to be available to serve for a second three-year period. If invited to do so, they may also serve for a third period of three years.
The Directors of RELX PLC as at February 20, 2025 are as follows:
|
Name (Age) |
|
Function |
|
Erik Engstrom (61) |
|
Executive Director and Chief Executive Officer |
|
Nick Luff (57) |
|
Executive Director and Chief Financial Officer |
|
Paul Walker (67) |
|
Non-Executive Chair (2)(3)(4) |
|
Alistair Cox (63) |
|
Non-Executive Director (1)(2)(4) |
|
June Felix (68) |
|
Non-Executive Director (1)(2)(4) |
|
Charlotte Hogg (54) |
|
Non-Executive Director (1)(4) |
|
Robert MacLeod (60) |
|
Non-Executive Director (2)(3)(4) |
|
Andrew Sukawaty (69) |
|
Non-Executive Director (1)(4) |
|
Bianca Tetteroo (55) |
|
Non-Executive Director (4)(5) |
|
Suzanne Wood (64) |
|
Non-Executive Director (1)(3)(4) |
| (1) | Member of the Audit Committee. |
| (2) | Member of the Remuneration Committee. |
| (3) | Member of the Nominations Committee. |
| (4) | Member of the Corporate Governance Committee. |
| (5) | Bianca Tetteroo was appointed to the Board on July 1, 2024. |
The following changes to the RELX PLC Board of Directors took place during the period from January 1, 2024 to December 31, 2024:
Marike van Lier Lels, a Non-Executive Director who was a member of the Nominations Committee and the Corporate Governance Committee, retired from the Board with effect from the conclusion of the Annual General Meeting on April 25, 2024, having served on the Board for nearly nine years.
Bianca Tetteroo joined the Board as a Non-Executive Director with effect from July 1, 2024 and also joined the Corporate Governance Committee.
Robert MacLeod will retire from the Board with effect from the conclusion of the Annual General Meeting on April 24, 2025, as announced by the Company on February 13, 2025.
Alistair Cox will succeed Robert MacLeod as Chair of the Remuneration Committee following the conclusion of the Annual General Meeting on April 24, 2025.
On February 13, 2025, RELX PLC announced the appointment of Andy Halford as a Non-Executive Director, effective from the conclusion of the 2025 Annual General Meeting (“AGM”), to be held on April 24, 2025, subject to his election by shareholders at the AGM.
Biographical details: Andy Halford (65)
Other appointments : Chief Financial Officer of Aareal Bank AG and Non-Executive Director of UK Government Investments Ltd.
Past appointments: Served as Chief Financial Officer of Standard Chartered plc from 2014 to 2024, Chief Financial Officer of Vodafone Group plc from 2005 to 2014 and Chief Financial Officer of Verizon Wireless in the United States from 2002 to 2005.
29
Served as a Non-Executive Director and Audit Committee Chair of Marks Spencer from 2013 to 2022 and was appointed as Senior Independent Director of that board in 2018. Chaired The 100 Group of Finance Directors from 2011 to 2012 and previously held a number of senior executive roles in East Midlands Electricity plc from 1992 to 1998.
Nationality: British
Experience/skills: Experienced senior executive with a strong financial background and a reputation for delivering shareholder value in major, complex, international organisations. Significant experience and expertise in managing and implementing transformational change in organisations.
Education: Qualified as a chartered accountant at Price Waterhouse LLP. He holds a Bachelor of Arts degree in Industrial Economics from Nottingham University.
SENIOR MANAGEMENT
The executive officers, other than Directors, at February 20, 2025 were:
Henry Udow : Chief Legal Officer and Company Secretary. A US and British citizen who is admitted to the Bar of New York State. Joined the Group in 2011. Prior to joining the Group, he was Chief Legal Officer and Company Secretary of Cadbury plc.
Rose Thomson : Chief Human Resources Officer of RELX PLC. Joined the Group in 2021. Prior to joining the Group, she was the Chief People Officer at ABRDN PLC a global investment and asset management company.
COMPENSATION
At the 2023 Annual General Meeting, a remuneration policy was approved, and is set out on pages 116 to 122 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2. The 2024 grants were made under the Long-Term Incentive Plan 2023 to Executive Directors under this policy.
The policy relating to payment for loss of office of Executive Directors and Non-Executive Directors is set out on pages 120 to 121 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Compensation of Executive Officers
The aggregate compensation (salary, annual incentive, benefits, pension, cash allowance in lieu of pension and dividend equivalents received in respect of shares vested during 2024) paid during 2024 (and in respect of the annual incentive earned in respect of 2024) to those who were executive officers (other than Directors) of RELX during the year ended December 31, 2024 was £3,296,402 which included contributions made to the pension plans in respect of such officers of £20,000.
The executive officers participate in an annual incentive plan (“AIP”) which is based on financial targets and individual key performance objectives measured over a one-year period. The resulting AIP payout comprises a cash payout in March following the end of the relevant financial year (2/3rds) and deferred shares (1/3rd) which are released to participants after three years. The 2024 aggregate compensation for executive officers includes both the cash and the deferred share elements of the 2024 AIP.
In 2024, we also granted conditional share awards to the executive officers under the LTIP 2023 (as defined below) (see “— Share Ownership — Share Ownership by Directors and Executive Officers” below).
ANNUAL REMUNERATION REPORT
The Annual Remuneration Report is set out on pages 104 to 115 of the RELX 2024 Annual Report and is incorporated herein by reference to Exhibit 15.2.
30
SHARE OWNERSHIP
Executive Directors’ Multi-Year Incentive Interests
This information is set forth under the heading ‘Multi-year incentive interests’ on pages 110 to 111 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Equity-Based Plans
As of December 31, 2024, we operated and/or had awards outstanding under a number of equity-based plans as follows:
|
(i) |
All-Employee Equity-Based Plans |
The following four plans are local all-employee equity based plans:
|
(a) |
UK SAYE Share Option Scheme (“SAYE Scheme 2013”) and ShareSave 2023 |
SAYE Scheme 2013 expired in 2023 and was replaced with ShareSave 2023. Grants under the SAYE Scheme 2013 have ceased but there are still options outstanding under this scheme.
Shares may be acquired at the exercise price, which is not less than the higher of (i) 80% of the closing market price for the relevant share on The London Stock Exchange three dealing days before invitations to apply for options are issued, and (ii) if new shares are to be subscribed, their nominal value.
All UK employees of RELX Group plc and participating companies under its control in employment at the date of invitation are eligible to participate in the scheme. In addition, the Directors of RELX Group plc may permit other employees of RELX Group plc and participating companies under its control to participate.
Participants can save between £10 and £500 per month for a period of three or five years. During a period of six months following the end of the period, the participant can use his/her savings to buy shares at the exercise price. However, options may be exercised earlier than the normal exercise date in certain specified circumstances, including death, or on ceasing employment on account of injury, disability, redundancy, or upon retirement under our self-standing retirement policy or the sale of the business or subsidiary for which the participant works, or provided the option has been held for at least three years. Exercise is allowed in the event of an amalgamation, reconstruction or take-over of the company whose shares are under option; alternatively, such options may, with the agreement of an acquiring company or a company associated with it, be exchanged for options over shares in the acquiring company or that associated company. Options may also be exercised in the event of the voluntary winding-up of the company whose shares are under option. In the event that options are exercised before the normal exercise date, the participant may acquire only the number of shares that can be purchased with the accumulated savings up to the date of exercise, plus interest (if any).
Awards were made under ShareSave 2023 in 2024, for a savings period of three years.
The Executive Directors have waived their right to participate in the SAYE Scheme 2013 and ShareSave 2023.
|
(b) |
Netherlands Convertible Debenture Stock Arrangements |
Subscriptions under this scheme ceased in 2017, but there are still option (formerly conversion) rights outstanding under this scheme. This facility consisted of an annual issue of a convertible debenture loan that was open for subscription by staff employed by our companies in the Netherlands or temporarily seconded to affiliates abroad. These convertible debenture loans had a term of 10 years and accrued interest on a quarterly basis, payable in arrears after the end of each year. During the 10-year term of the loan, employees could decide to convert their claim into RELX PLC shares at an exercise (conversion) price equal to the share price on Euronext Amsterdam on the last dealing day of the month in which the employee subscribed for the loan (the exercise price). All remaining debenture loans, together with accrued interest up to the payment date, were repaid to bond holders in November 2019. When the loans were repaid, subsisting conversion rights became standalone option rights on substantially the same terms, with no change to the relevant exercise price and 10-year exercise (conversion) period.
31
The Executive Directors were not eligible to participate in this scheme.
|
(c) |
Dutch Share Purchase Plan (“DSPP”) |
All employees of RELX Nederland BV and participating companies under its control who are neither in their probation period nor under notice at the date of invitation and who are in receipt of salary via a Dutch payroll are entitled to participate in the DSPP. Each cycle of the DSPP operates on a standalone basis and eligibility is assessed for each cycle that is offered. The 2024 cycle of the DSPP launched in February 2024 and completed in December 2024.
Participating employees make monthly contributions out of net salary which are used to purchase RELX PLC shares, listed on Euronext Amsterdam (investment shares). Minimum and maximum annual contribution amounts apply to each cycle. In 2024, the minimum annual contribution amount was €250 and the maximum annual contribution amount was €6,000. At the end of the cycle, participants who were still in RELX employment, and who had not sold any of the investment shares purchased during the year, received matching shares from RELX equal to 20% of the investment shares purchased during the year. Investment shares acquired under the DSPP accrue normal RELX dividends which are automatically reinvested into additional RELX PLC shares.
The Executive Directors are not eligible to participate in the DSPP.
|
(d) |
Employee Share Purchase Plan 2023 (“ESPP 2023”) |
The Employee Share Purchase Plan 2023 (“ESPP 2023”) offers eligible US employees the opportunity to acquire RELX American Depositary Receipts (ADRs) at a discount. The ESPP 2023 is designed to comply with section 423 (b) of the US Internal Revenue Code of 1986. Employees of participating US subsidiaries of RELX PLC are eligible to participate. Participation may exclude certain employees, within the limits of the IRS Code, based on their period of continuous employment, weekly or annual hours or if they are highly compensated.
Minimum and maximum annual contribution amounts apply to each cycle. For the first award made in 2024, the minimum annual contribution amount was $300 and the maximum $6,000. The upper limit in the ESPP rules is the IRS Code limit, currently $25,000 per year. The award is made in the form of an option to acquire ADRs at a fixed price which may be set at a discount (of up to 15%) to the market value of the ADRs at the date of grant or exercise. At the end of the contribution period, the options will be exercised unless the employee chooses to withdraw.
The Executive Directors are not eligible to participate in the ESPP 2023.
|
(ii) |
Executive Equity-Based Plans |
Our executive equity-based plans comprise:
|
(a) |
Long-term incentive plan 2013 (“LTIP 2013”) |
The LTIP 2013 applied to senior executives (including executive officers and the Executive Directors). Awards were granted as performance share awards. Awards vest subject to performance measured over three financial years. Awards may be satisfied with new issue shares, a transfer of treasury shares or shares purchased in the market, but it is currently intended to continue the existing practice of satisfying awards with shares purchased in the market. The vesting of awards is also subject to participants meeting a minimum shareholding requirement and continued employment (except for certain categories of approved leavers). Dividend equivalents accrue over the performance period and are paid out in cash at the end to the extent that the awards vest. Further, shares vested from awards granted to the Executive Directors in 2016 and 2017 were subject to a further six months holding period post vesting which was increased to two years for shares vested from awards granted to the Executive Directors from 2018 onwards. Awards under this plan have ceased but there are still unvested awards outstanding.
32
|
(b) |
Long-term incentive plan (“LTIP 2023”) |
The rules of the LTIP 2013 expired at the 2023 AGM. Shareholders approved new rules for a replacement plan at the 2023 AGM on substantially the same terms. The LTIP 2023 applies to senior executives (including executive officers and the Executive Directors). Awards are granted as a right to receive shares without payment, which normally vest subject to performance measured over three financial years. Awards may be satisfied with new issue shares, a transfer of treasury shares or shares purchased in the market, but it is currently intended to continue the existing practice of satisfying awards with shares purchased in the market. The vesting of awards is also subject to participants meeting a minimum shareholding requirement and continued employment (except for certain categories of approved leavers). Dividend equivalents accrue over the performance period and are paid out in cash at the end to the extent that the awards vest. Shares vested from awards granted to the Executive Directors are subject to a further two years holding period post vesting.
The first awards under this plan were granted after the 2023 AGM.
The performance measures and targets applicable to awards granted in 2024 under this plan are detailed in the table below.
LTIP: 2024-2026 cycle
Vesting is dependent on three separate performance measures: a total shareholder return (“TSR”) measure (comprising three comparator groups), an EPS measure and a return on invested capital (“ROIC”) measure, weighted 20%:40%:40% respectively and assessed independently. (1)
|
Vesting percentage of each third |
|
TSR ranking within the relevant |
|
of the TSR tranche(2) |
|
TSR comparator group |
|
0% |
|
below median |
|
20% |
|
median |
|
100% |
|
upper quartile |
| (1) | The calculation methodology for TSR, EPS and ROIC is set out in the 2013 Notice of Annual General Meeting, which can be found on our website, www.relx.com . The information on our website is not incorporated by reference into this Annual Report on Form 20-F. |
Each comparator group comprises around 50 companies, which were selected on the same basis as the comparator groups for prior cycles under this plan.
| (2) | Vesting is on a straight-line basis for performance between the minimum and maximum levels. |
|
|
|
Average growth in adjusted |
|
|
|
Vesting percentage of EPS |
|
EPS over the three-year |
|
Average ROIC over the three-year |
|
and ROIC tranches* |
|
performance period |
|
performance period |
|
0% |
|
below 5% p.a. |
|
below 11.0% |
|
20% |
|
5% p.a. |
|
11.0% |
|
50% |
|
6% p.a. |
|
11.5% |
|
65% |
|
7% p.a. |
|
12.0% |
|
75% |
|
8% p.a. |
|
12.5% |
|
85% |
|
9% p.a. |
|
13.0% |
|
92.5% |
|
10% p.a. |
|
13.5% |
|
100% |
|
11% p.a. or above |
|
14.0% or above |
* Vesting is on a straight-line basis for performance between the stated average adjusted EPS growth/ROIC percentages.
33
|
(c) |
Executive Share Option Scheme 2013 (“ESOS 2013”) |
The ESOS 2013 applied to around 1,000 executives. Market value options granted vest (subject to performance in the case of Executive Directors) after three years and remain exercisable, subject to continued employment, until the tenth anniversary of grant. Options may be satisfied with new issue shares, a transfer of treasury shares or shares purchased in the market, but it is currently intended to continue the existing practice of satisfying options with new issue shares.
Awards under this scheme have ceased but there are still unvested awards outstanding. Vested awards held by the executives and Directors remain exercisable, as applicable.
|
(d) |
Retention Share Plan (“RSP”) and Restricted Share Plan (“RSP 2014”) |
The RSP was used to facilitate the grant of one-off awards of restricted shares, where appropriate, to senior new hires for example, to buy out share-based awards from previous employment. The restricted shares which have been awarded will be satisfied by shares purchased in the market and Executive Directors are not eligible to participate. In 2014, the RSP 2014 replaced the RSP for the type of awards described above.
Since 2006, employees eligible to participate in the ESOS 2013, other than Executive Directors, have been able to choose prior to the date of grant whether to receive all or part of their grant in the form of restricted shares based on a pre-determined conversion ratio of one share for every five options that would otherwise be granted to them under ESOS. The RSP is the vehicle used to deliver the award of such restricted shares. The restricted shares vest after the expiry of three years from the date of grant, subject to the participant remaining employed by us or a participating company under our control. The restricted shares awarded are satisfied by shares purchased in the market.
|
(e) |
Executive Share Ownership Scheme (“ESOS 2023”) |
This plan effectively replaces and combines the ESOS 2013 and RSP 2014 under a single plan. Under ESOS 2023, eligible employees may be granted options (at market value or nil cost) over RELX PLC ordinary shares or ADRs. Awards may also be granted as a right to receive shares without payment. The normal vesting period will be three years. Market value options remain exercisable, subject to continued employment, until the tenth anniversary of grant. Awards may be satisfied with new issue shares, a transfer of treasury shares or shares purchased in the market, but it is currently intended to continue the existing practice of satisfying options with new issue shares and share awards with market purchased shares.
Executive Directors are not eligible to receive awards under the ESOS 2023 except in exceptional circumstances and subject to the applicable remuneration policy (for example, on recruitment, to satisfy buy-out of awards forfeited from a previous employer).
The first awards under this plan were granted after the 2023 AGM.
Share Options and Conditional Share Awards
At February 12, 2025 the total number of shares subject to outstanding options was:
|
|
|
Number of |
|
|
|
|
|
|
|
|
outstanding |
|
Options over |
|
Option price |
|
|
|
|
options |
|
shares |
|
range |
|
|
UK SAYE Scheme |
|
1,798,062 |
|
RELX PLC |
|
£ |
13.568-27.92 |
|
Netherlands Convertible Debenture Stock Scheme |
|
253,670 |
|
RELX PLC |
|
€ |
14.655-19.39 |
|
ESPP |
|
311,121 |
|
RELX PLC |
|
$ |
38.59 |
|
ESOS |
|
6,570,507 |
|
RELX PLC |
|
£ |
11.52-35.12 |
|
|
|
689,509 |
|
RELX PLC |
|
€ |
15.003-17.785 |
Share options are expected, upon exercise, to be met by the issue of new ordinary shares.
34
At February 12, 2025 the following conditional share awards were also outstanding:
|
|
|
Number of |
|
|
|
|
|
outstanding |
|
Awards over |
|
|
|
awards |
|
shares in |
|
LTIP |
|
5,001,280 |
|
RELX PLC |
|
RSP |
|
880,006 |
|
RELX PLC |
Share Ownership by Directors and Executive Officers
The interests of those individuals who were Directors of RELX PLC as at December 31, 2024 in the issued share capital of RELX PLC at the beginning and end of the year are shown under the heading ‘Statement of Directors’ shareholdings and other share interests’ on page 109 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
The interests of the current Executive Directors of RELX PLC in the issued share capital of RELX PLC as at February 19, 2025 were:
|
|
|
Interest in |
|
|
|
RELX |
|
|
|
PLC shares |
|
Erik Engstrom* |
|
1,180,001 |
|
Nick Luff |
|
289,260 |
|
* |
Comprises ordinary shares and ADRs. |
The following table indicates the total aggregate number of RELX PLC securities beneficially owned (comprising ordinary shares and ADRs) and the total aggregate number of share options (comprising ordinary shares only) and conditional share awards (comprising ordinary shares and ADRs) held by the executive officers (other than Directors) of the Company in office as of February 12, 2025:
|
|
|
|
|
RELX |
|
RELX |
|
|
|
|
|
|
|
PLC £ |
|
PLC € |
|
RELX |
|
|
|
|
|
ordinary |
|
ordinary |
|
PLC |
|
|
|
|
|
shares |
|
shares |
|
conditional |
|
|
|
RELX PLC |
|
subject to |
|
subject to |
|
share |
|
|
|
shares |
|
options |
|
options |
|
awards |
|
Executive officers (other than Directors) |
|
701,603 |
|
21,910 |
|
21,630 |
|
335,712 |
The options over RELX PLC pound sterling denominated ordinary shares included in the above table are exercisable at prices ranging from £12.55 to £19.76 per share between the 3rd anniversary of their respective grant date and 2027 (except for SAYE options which will be exercisable for six months from the respective maturity date). The options over RELX PLC Euro denominated ordinary shares included in the above table are exercisable at prices ranging from €15.285 to €16.7225 per share between the 3rd anniversary of their respective grant date and 2027. The RELX PLC conditional share awards included in the above table will vest between 2025 and 2027.
In 2024, we granted a total of 72,267 conditional share awards to the executive officers under the LTIP 2023 (which is described above under “Executive Equity-Based Plans”).
35
BOARD PRACTICES
The Board currently consists of two Executive Directors, the Chair and seven Non-Executive Directors. Persons nominated by the Nominations Committee will be required to be approved by the Board, prior to appointment to the Board. A copy of the terms of reference of the Nominations Committee is available on request and can be viewed on our website, www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F.
Notwithstanding the provisions outlined above in relation to the appointment to the Board, shareholders retain their rights under RELX PLC’s articles of association to appoint Directors to the Board by ordinary resolution. Shareholders may also, by ordinary resolution, remove a Director from the Board.
The Board has also established the following Committees:
| — | Audit — currently comprising five independent Non-Executive Directors; |
| — | Corporate Governance — currently comprising all Non-Executive Directors and the Chair of the Board; |
| — | Nominations — currently comprising two Non-Executive Directors and the Chair of the Board; and |
| — | Remuneration — currently comprising three Non-Executive Directors and the Chair of the Board, which is responsible for determining the remuneration policy (subject to shareholders approval) and monitoring and deciding its implementation for the Executive Directors and the Chair, and approving the remuneration for senior executives below Board level. |
For additional information regarding the Board membership positions and executive officer positions within the Group, see “Directors” and “Senior Management” on pages 29 to 30. Details of the membership of the Audit Committee and details of the membership of the Remuneration Committee are given under “Directors” on page 29.
Under the articles of association of RELX PLC, one-third of the Directors shall retire from office and, if they wish, make themselves available for re-election by shareholders at the Annual General Meeting. Notwithstanding these provisions in the articles of association, in accordance with the provisions of the UK Corporate Governance Code all Directors normally retire and, unless they are standing down, will offer themselves for re-election/election at each Annual General Meeting.
The main roles and responsibilities of the Remuneration Committee are set out in written terms of reference and include:
| (i) | to determine the remuneration policy and monitor and decide its implementation, subject to and in accordance with applicable law, for the executive directors and senior management of RELX PLC; |
| (ii) | to review the ongoing appropriateness and relevance of the remuneration policy and in particular the performance-related elements and their compatibility with risk policies and systems ; |
| (iii) | to review and recommend amendments to the rules of all share based incentive plans and, where appropriate, to formulate suitable performance conditions for share based awards and options ; |
| (iv) | t o have due regard in the performance of its duties to any published corporate governance guidelines, codes or recommendations regarding the remuneration of directors of listed companies and formation and operation of share schemes which the Committee considers relevant or appropriate including but not limited to the UK Corporate Governance Code ; |
| (v) | to assist in maintaining an open and ongoing dialogue with institutional investors on major remuneration policy issues ; and |
| (vi) | to review workforce remuneration and related policies, and the alignment of incentives and rewards with culture, and take these into account when setting the remuneration policy for executive directors . |
The Remuneration Committee Chair reports formally to the Board on its proceedings after each meeting on all matters within its duties and responsibilities and the Committee has due regard that prevailing requirements and best practice regarding disclosure of all information are met and produces an annual report of RELX’s remuneration policy and practices which forms part of RELX’s Annual Report.
36
The terms of reference for the Remuneration Committee are reviewed annually and a copy is published on our website, www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F.
EMPLOYEES
The number of people employed is disclosed in note 5 to the consolidated financial statements under the heading ‘Personnel’ on page 151 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
The Board of RELX PLC is fully committed to the concept of employee involvement and participation, and encourages each of its business areas to formulate its own tailor-made approach with the co-operation of employees. We are an equal opportunity employer, and recruit and promote employees on the basis of suitability for the job. Appropriate training and development opportunities are available to all employees. RELX has adopted a code of ethics and business conduct applicable to all employees within the Group.
37
ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
MAJOR SHAREHOLDERS
As at February 20, 2025, we had been notified by the following shareholders that they held an interest of 3% or more in voting rights (1) of the issued share capital of RELX PLC. The number of shares and percentage interests stated below are as disclosed at the date on which the interests were notified to us:
|
|
|
Number of |
|
|
|
Identity of Person or Group (2) |
|
Shares |
|
% of Class |
|
BlackRock, Inc |
|
186,631,180 |
|
9.67 |
|
Invesco Limited |
|
52,329,893 |
|
4.99 |
| (1) | Under the UK Disclosure and Transparency Rules, subject to certain limited exceptions, persons or groups with an interest of 3% or more in voting rights of the issued ordinary share capital are required to notify RELX PLC, and the UK Financial Conduct Authority of their interest. Shares held in treasury, which do not carry voting rights, are disclosed in “Item 10: Additional Information”. |
| (2) | Under the UK Large and Medium-sized Companies and Groups (Financial Statements and Reports) Regulations 2008, RELX PLC is required to disclose information it is aware of regarding the identity of each person with a significant direct or indirect holding of securities in RELX PLC as at the financial year end. |
As far as RELX PLC is aware, except as disclosed herein, it is neither directly or indirectly owned nor controlled by one or more corporations or by any government.
There were no material or unusual transactions between RELX and any of the entities listed above.
At December 31, 2024, there were 72 ordinary shareholders with a registered address in the United States, holding 82,172,739 ordinary shares of RELX PLC, representing 4.36% of the total number of ordinary shares issued. This includes Citibank N.A., depositary for RELX PLC’s ADR programme, which held 82,083,436 ordinary shares of RELX PLC, representing 4.36% of the total number of ordinary shares issued. At December 31, 2024, there were 144 registered ADR holders (holding together 36,599 ADRs), who all have a registered address in the United States, representing less than 0.01% of the total number of ordinary shares issued.
RELX PLC is not aware of any arrangements the operation of which may at a subsequent date result in a change in control of RELX PLC. The major shareholders of RELX PLC do not have different voting rights to other ordinary shareholders.
RELATED PARTY TRANSACTIONS
Transactions with joint ventures and key management personnel, comprising the Executive and Non-Executive Directors of RELX PLC, are set out in note 25 to the consolidated financial statements under the heading ‘Related party transactions’ on page 181 of the RELX 2024 Annual Report and is incorporated herein by reference to Exhibit 15.2.
Further details of remuneration of key management personnel are set out in “Item 6: Directors, Senior Management and Employees”.
38
ITEM 8: FINANCIAL INFORMATION
FINANCIAL STATEMENTS
See “Item 18: Financial Statements”, incorporated herein by reference.
DIVIDEND POLICY
The dividend policy of RELX PLC is, over the longer term, to grow dividends broadly in line with adjusted earnings per share paying out approximately half of adjusted earnings in dividend each year.
LEGAL PROCEEDINGS
Various of RELX PLC’s subsidiaries operating in the United States have been the subject of regulatory actions and legal proceedings relating to alleged non-compliance with privacy, data protection and consumer protection laws and regulations regarding the obtaining and disclosure by such subsidiaries of personal information of the individuals involved, as well as historic data security incidents, pursuant to which unauthorised persons were alleged to have obtained personal information from our databases. These types of actions and investigations are generally settled, with the substantial portion of any cash payments agreed to be paid by these subsidiaries being reimbursed by insurance and third-party indemnities. The regulatory settlements generally require comprehensive data security programmes, submissions of regulatory reports and on-going monitoring by independent third parties to ensure our compliance with the terms of those settlements. While the costs of such compliance and on-going monitoring will be borne by us, neither the costs of compliance nor the costs of such on-going monitoring are expected to have a material adverse effect on our financial position or the results of our operations.
Various of RELX PLC’s subsidiaries offer products that require that we meet certain obligations in connection with the disclosure of information. Certain of these laws further provide for statutory penalties and attorneys’ fees for non-compliance. In the normal course of its business, Risk deals with individual and class action lawsuits claiming violation of one or more of these statutes. Other than pending matters, to date, these cases have either been settled or successfully defended with a substantial portion of cash payments agreed to be paid by our insurance providers. These lawsuits have not had, and are not expected to have, a material adverse effect on our financial position or the results of our operations.
We are party to various other legal proceedings arising in the ordinary course of our business, the ultimate resolutions of which are not expected to have a material adverse effect on our financial position or the results of our operations.
39
ITEM 9: THE OFFER AND LISTING
TRADING MARKETS
The RELX PLC ordinary shares are listed on the London Stock Exchange, Euronext Amsterdam and the New York Stock Exchange. The London Stock Exchange is the principal trading market for RELX PLC ordinary shares. Trading on the New York Stock Exchange is in the form of American Depositary Shares (“ADSs”), evidenced by American Depositary Receipts (“ADRs”) issued by Citibank N.A., as depositary. Each ADS represents one RELX PLC ordinary share. The tickers for each of RELX PLC’s listings are detailed below:
| — | London Stock Exchange — ‘REL’ |
| — | Euronext Amsterdam — ‘REN’ |
| — | New York Stock Exchange — ‘RELX’ |
40
ITEM 10: ADDITIONAL INFORMATION
ARTICLES OF ASSOCIATION
A copy of RELX PLC’s current Articles of Association (the “Articles”) is filed as Exhibit 1.1 to this Annual Report on Form 20-F.
The following is a summary of the current Articles. As a summary, it is not exhaustive and is qualified in its entirety by reference to UK law and the Articles.
Company’s Objects
RELX PLC’s objects are unrestricted.
Share Capital
As at December 31, 2024 the Company’s issued ordinary share capital comprised 1,880,844,719 shares of 14 51 / 116 p and the number of shares held in treasury totaled 24.9 million. Of these, 5.3 million ordinary shares were held by the Employee Benefit Trust and 19.6 million ordinary shares were held in treasury by RELX PLC. During 2024, RELX PLC bought back a total of 28.9 million ordinary shares to be held in treasury pursuant to the authority given by shareholders at the Annual General Meeting held on April 25, 2024, and the previous authority given by shareholders at the Annual General Meeting held on April 20, 2023. On December 5, 2024, RELX PLC cancelled 29 million ordinary shares held in treasury. These share purchases and cancellations are reflected in the number of ordinary shares held in treasury at, December 31, 2024. All share capital is fully paid up.
RELX PLC by ordinary resolution and subject to the UK Companies Act 2006 (as amended) (the “Companies Act”) may:
| 1. | Allot shares up to a limit of 1/3 of the issued share capital, a further 1/3 of the issued share capital may be allotted but only in connection with a fully pre-emptive rights issue; |
| 2. | Sub-divide all or part of the share capital into shares of a smaller nominal value than the existing shares; and |
| 3. | Consolidate and divide all or part of the share capital into shares of a larger nominal value than the existing shares. |
All shares created by an increase of RELX PLC’s share capital by consolidation, division or sub-division shall be subject to all the provisions of the Articles.
RELX PLC by special resolution and subject to the Companies Act may:
| 1. | Disapply shareholders pre-emption rights on new issue shares up to a limit of 5% of the issued share capital, and disapply pre-emption rights on new issue shares up to a further 5% of the issued share capital in connection with an acquisition or specified capital investment subject to certain conditions; |
| 2. | Buy back its own shares up to a limit of 10% of the issued share capital; and |
| 3. | Reduce its share capital. |
41
Transfer of ordinary shares
A certificated shareholding may be transferred in the usual form or in any other form approved by the Board. The Board in its discretion may refuse to register the transfer of a certificated share which is not fully paid and may also refuse to register the transfer of a certificated share unless the instrument of transfer:
| 1. | is stamped or certified and lodged, at the registered office or other place that the Board decides, accompanied by the relevant share certificate and any other evidence that the Board may reasonably require to prove a legitimate right to transfer; |
| 2. | is in respect of only one class of shares; and |
| 3. | is in favour of not more than four transferees. |
Where the Board refuses to register a transfer of certificated shares, it must notify the transferee of the refusal within two months after the date on which the instrument of transfer was lodged with RELX PLC.
For those members holding uncertificated shares, such transfers must be conducted using a relevant system as defined in the UK Uncertificated Securities Regulations 2001.
Untraced shareholders
RELX PLC is entitled to sell any of its ordinary shares if:
| 1. | during the period of 12 years prior to the publication of any advertisement stating the intent to sell, at least three dividends have become payable on the shares which have remained uncashed; and |
| 2. | during the period of three months following the publication of any advertisement stating the intent to sell, RELX PLC has received no indication of the location, or existence of the member, or the person entitled to the shares by way of transmission. |
Dividend Rights
Subject to the provisions of the Companies Act, the shareholders may by ordinary resolution declare a dividend no larger than the amount recommended by the Board requiring a simple majority of the votes cast. Interim dividends may also be payable if the Board deems that there is sufficient profit available for distribution. Except as otherwise provided by the rights attached to the shares, all dividends shall be declared and paid according to the amounts paid up on the shares on which the dividend is declared. No dividend payable in respect of a share shall bear interest against RELX PLC, unless otherwise provided by the rights attached to the share.
Dividends may only be paid if RELX PLC has profits available for distribution. “Profits available for distribution” is defined in the Companies Act as “accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made.” RELX PLC is not permitted to pay dividends out of share capital, which includes share premium. Profits available for distribution are determined in accordance with generally accepted accounting principles at the time the relevant accounts are prepared. RELX PLC will not be permitted to make a distribution if, at the time the proposed dividend is to be made, the amount of its net assets is less than the aggregate of its called-up share capital and undistributable reserves, or if the proposed dividend will reduce the net assets below such amount.
Dividends may be paid in cash, or (subject to shareholder approval and to the procedure set out in the Articles) by way of a distribution of assets, including, without limitation, paid up shares or debentures of another body corporate or further issuance of fully paid-up RELX PLC Shares.
42
Unclaimed dividends
Any dividend which remains unclaimed for 12 years from the date when it became due for payment shall, if the Board so resolves, be forfeited and cease to be owed by RELX PLC to the shareholder. RELX PLC may stop issuing dividend cheques or warrants:
| 1. | Where on at least two consecutive occasions dividend cheques/warrants are left uncashed or returned undelivered; or |
| 2. | Where after one such occasion reasonable enquiries have failed to establish an updated address. |
If the member goes on to claim a dividend or warrant, RELX PLC must recommence issuing dividend cheques and warrants.
Distribution of assets on winding up
In the event of RELX PLC being wound up, on the authority of a special resolution of RELX PLC and subject to the UK Insolvency Act 1986 (as amended) the liquidator may:
| 1. | Divide among the members the whole or any part of the assets of RELX PLC. |
| 2. | Value any assets and determine how the division should be made between the members or different classes of members. |
| 3. | Place the whole or any part of the assets in trust for the benefit of the members and determine the scope and terms of these trusts. |
A member cannot be compelled to accept an asset with an inherent liability.
Variation of rights
Subject to the Companies Act, where the capital of RELX PLC is divided into different classes of shares, the unique rights attached to the respective classes may be varied or cancelled:
| 1. | With the written consent of the holders of 75% in nominal value of the issued shares of the class (excluding any treasury shares held in that class); or |
| 2. | By authority of a special resolution passed at a separate general meeting of the holders of the shares of the class. |
General meetings of shareholders
Under the RELX PLC Articles, a resolution put to the vote of a general meeting will be decided on a show of hands unless a vote by poll is duly demanded.
Subject to the Companies Act, RELX PLC must hold a general meeting as its annual general meeting within six months from January 1 every year. The Board may convene a general meeting when necessary and must do so promptly upon requisition by the shareholders. The notice period for annual general meetings is 21 clear days and 14 clear days for other general meetings. Subject to the Companies Act and the Articles, the notice shall be sent to every member at their registered address. If, on two consecutive occasions notices are sent to a member’s registered address and have been returned undelivered the member shall not be entitled to receive any subsequent notice.
Voting rights
On a vote on a resolution by way of a show of hands, every shareholder or duly appointed proxy who is present at the general meeting in person has one vote. On a vote on a resolution by way of a poll every shareholder present in person or by proxy has one vote for every RELX PLC Share of which he, she or it is the holder.
43
In the case of joint holders of a RELX PLC Share, the vote of the senior shareholder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the votes of the other joint holders. For this purpose, seniority shall be determined by the order in which the names of the holders are listed in the register of shareholders.
Subject to the provisions of the Companies Act, a poll may be demanded by: (i) the chair of the meeting; (ii) at least five shareholders present in person or by proxy having the right to vote on the resolution (except on the election of the chair of the meeting or on a question of adjournment); (iii) any shareholder or shareholders present in person or by proxy representing not less than 10% of the total voting rights of all the shareholders having the right to vote on the resolution (excluding any voting rights attached to any RELX PLC Shares held as treasury shares); or (iv) any shareholder or shareholders present in person or by proxy holding shares conferring a right to vote on the resolution, being shares on which an aggregate sum has been paid up equal to not less than 10% of the total sum paid up on all shares conferring that right (excluding any shares conferring a right to vote on the resolution which are held as treasury shares).
No member is entitled to vote on a partly paid share. The Board also has the discretion to prevent a member from voting in person or by proxy if they are in default of a duly served notice under section 793 of the Companies Act, concerning a request for information about interest in RELX PLC’s shares.
Directors’ Interests
Subject to the provisions of the Companies Act, where a Director declares an interest to the Board, the Board may authorise the matter proposed to it which would otherwise constitute a conflict of interest and place a Director in breach of their statutory duty. Such authorisation is effective where the Director in question is not included in the quorum for the meeting and the matter was agreed without their vote, or would have been agreed to had their vote not been counted. A Director’s duty to declare an interest does not apply in the circumstances provided for by section 177(5) and 177(6) of the Companies Act. A Director:
| 1. | May be a party to, or otherwise interested in, any transaction or arrangement with RELX PLC or in which RELX PLC is directly or otherwise interested; |
| 2. | May act solely or with his firm in a professional capacity (not as auditor) for RELX PLC and shall be entitled to remuneration for his professional services, notwithstanding his position as Director; and |
| 3. | May be interested in a body corporate in which RELX PLC is directly or indirectly interested or where the relationship between the Director and the body corporate is at the request or direction of RELX PLC. |
A Director with a declared interest that has been authorised by the Board, is not accountable to RELX PLC or its shareholders for any benefits received.
Directors’ Remuneration
The remuneration of any Executive Director shall be determined by the Board in accordance with RELX PLC’s Remuneration Policy and may include (without limitation) admission to or continuance of membership of any scheme (including share acquisition schemes), life assurance, pension provision or other such benefits payable to the Director on or after retirement, or to his dependants on or after death.
For Directors who do not hold an executive position in RELX PLC, their ordinary remuneration shall not exceed in aggregate £500,000 per annum or such higher amount as RELX PLC may determine by ordinary resolution from time to time (and on June 27, 2018, an ordinary resolution was passed to increase such amount to £2,000,000 per annum). Each Director shall be paid a fee for their services which is deemed to accrue from day to day at such rate as determined by the Board.
The Directors may grant extra remuneration to any Director who does not hold executive office but sits on any committee of the Board, or performs any other special services at the request of RELX PLC. This extra remuneration may be paid in addition to, or in substitution for the ordinary remuneration.
44
Directors’ appointment/retirement/removal
The Board may appoint a person willing to act as Director, either to fill a vacancy or as an additional Director, provided the upper limit set by the Articles is not exceeded. RELX PLC may by ordinary resolution remove any Director from office, no special notice need be given and no Director proposed for removal under the Articles has a right of protest against such removal. Directors are not required to hold any shares by way of qualification. Directors are not subject to an age limit requirement for retirement.
Borrowing powers
Subject to the Companies Act, the Board may exercise all the powers of RELX PLC to borrow money, guarantee, indemnify, mortgage or charge its undertaking, property, assets (present and future) and uncalled capital and to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of RELX PLC or of any third-party. Without the authority of an ordinary resolution the directors are prohibited from borrowing in excess of an amount equal to the higher of (i) £12,000,000,000 and (ii) two and a half times the adjusted total of capital and reserves.
Indemnity
Subject to the Companies Act, without bar to any other existing indemnity entitlements, RELX PLC may use its assets to indemnify a Director against liability incurred through negligence, default, breach of duty or breach of trust in relation to RELX PLC’s affairs.
Redemption provision
Subject to the provisions of the Companies Act, and without prejudice to any rights attached to any existing shares or class of shares, shares may be issued which are to be redeemed or are to be liable to be redeemed at the option of RELX PLC or the holder. The board may determine the terms, conditions and manner of redemption of shares provided that it does so before the shares are allotted.
Capital call provision
Subject to the terms of allotment, the board may from time to time make calls on the members in respect of any moneys unpaid on their shares (whether in respect of nominal value or premium). Each member shall (subject to receiving at least 14 clear days’ notice specifying when and where payment is to be made) pay to RELX PLC the amount called on his shares as required by the notice. A call may be required to be paid by instalments. A call may be revoked in whole or part and the time fixed for payment of a call may be postponed in whole or part as the board may determine. A person on whom a call is made shall remain liable for calls made on him notwithstanding any subsequent transfer of the shares in respect of which the call was made. A call shall be deemed to have been made at the time when the resolution of the board authorising the call was passed. The joint holders of a share shall be jointly and severally liable to pay all calls in respect of it.
If a call or any instalment of a call remains unpaid in whole or in part after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due and payable until it is paid. The interest shall be paid at the rate fixed by the terms of allotment of the relevant share or in the notice of the call or, if no rate is fixed, at such rate, not exceeding 15% per annum or, if higher, the appropriate rate (as defined in the Companies Act), as may be determined by the board. The board shall be at liberty to waive payment of such interest wholly or in part in respect of any individual member.
EXCHANGE CONTROLS
Other than certain economic sanctions which may be in effect from time to time, there is currently no UK legislation restricting the import or export of capital or affecting the remittance of dividends or other payments to holders of RELX PLC ordinary shares who are non-residents of the United Kingdom.
There are no limitations relating only to non-residents of the United Kingdom under UK law (subject to the effect of certain economic sanctions which may be in effect from time to time) or RELX PLC’s Articles on the right to be a holder of, and to vote, RELX PLC ordinary shares.
45
TAXATION
The following discussion is a summary under present law and tax authority practice of the material UK and US federal income tax considerations relevant to the purchase, ownership and disposal of RELX PLC ordinary shares or ADSs. This discussion applies to you only if you are a US holder, you hold your ordinary shares or ADSs as capital assets and you use the US dollar as your functional currency. It does not address the tax treatment of US holders subject to special rules, such as banks and other financial institutions, dealers or traders in securities or currencies, insurance companies, real estate investment trusts, persons subject to the rules relating to the timing of income inclusions in accordance with applicable financial statements, regulated investment companies, traders in securities that elect to mark-to-market, tax-exempt entities, persons liable for alternative minimum tax, pass-through entities for US federal income tax purposes (including entities treated as partnerships or S-corporations for such purposes), holders which own (actually or constructively) 10% or more of RELX PLC shares (as measured by vote or value), persons holding ordinary shares or ADSs as part of a hedging, straddle, conversion or constructive sale transaction, or persons that are resident or domiciled in the United Kingdom (or who have ceased to be resident in the United Kingdom or became treated as resident outside the United Kingdom for the purpose of a double tax treaty within the past five years of assessment). The summary also does not discuss the US federal alternative minimum tax, US estate and gift tax laws, the tax laws of particular states or localities in the United States or the Medicare tax on net investment income.
This summary does not consider your particular circumstances. It is not a substitute for tax advice. We urge you to consult your own independent tax advisors about the income, capital gains and/or transfer tax consequences to you in light of your particular circumstances of purchasing, holding and disposing of ordinary shares or ADSs.
As used in this discussion, “US holder” means a beneficial owner of ordinary shares or ADSs that is for US federal income tax purposes: (i) an individual US citizen or resident, (ii) a corporation (or other entity treated as a corporation) created or organised under the laws of the United States, any state thereof or the District of Columbia, (iii) a trust (a) that is subject to the control of one or more US persons and the primary supervision of a US court or (b) that has a valid election in effect under US Treasury regulations to be treated as a US person or (iv) an estate the income of which is subject to US federal income taxation regardless of its source.
UK Taxation
Dividends
Under current UK taxation legislation, no tax is required to be withheld at source from dividends paid on the RELX PLC ordinary shares or ADSs. Dividends payable on the ADSs or RELX PLC ordinary shares should not be chargeable to UK tax in the hands of a non-UK resident unless such person (i) is a company carrying on a trade in the United Kingdom through a UK permanent establishment, or (ii) carries on a trade (or profession or vocation) in the United Kingdom and the dividends are a receipt of that trade.
Capital Gains
Non-UK resident shareholders may be liable for UK taxation on capital gains realised on the disposal of their RELX PLC ordinary shares or ADSs if at the time of the disposal the shareholder carries on a trade, profession or vocation in the United Kingdom through a branch or agency, or in the case of a company a permanent establishment, and such ordinary shares or ADSs are or have been used, held or acquired for the purposes of such trade, profession, vocation, branch, agency or permanent establishment.
UK Stamp Duty and Stamp Duty Reserve Tax
No UK stamp duty should be payable on the transfer of RELX PLC ADSs, provided that no instrument of transfer is entered into (which should not be necessary). An agreement to transfer RELX PLC ADSs should not give rise to a liability to stamp duty reserve tax (SDRT).
There is, however, a charge to SDRT or stamp duty at the rate of 1.5% of the amount or value of the consideration for the transfer or, in some circumstances, the value of the RELX PLC ordinary shares transferred (rounded up to the next multiple of £5 in the case of stamp duty), where RELX PLC ordinary shares are transferred to the depositary in exchange for RELX PLC ADSs evidenced by ADRs (or to a person whose business is or includes the provision of clearance services, or a nominee or agent for such a person). Such 1.5% charge is subject to exceptions, including for (i) transfers which are made in the course of “capital-raising
46
arrangements” (as defined in sections 72ZA and 97AB of the Finance Act 1986), and (ii) transfers which are made in the course of “qualifying listing arrangements” (as defined in sections 72ZB and 97AC of the Finance Act 1986) and which do not affect the beneficial ownership of the RELX PLC ordinary shares in question. Specific professional advice should be sought in any case where the 1.5% SDRT or stamp duty charge may be applicable.
A transfer of RELX PLC ordinary shares by the depositary to an ADS holder where there is no transfer of beneficial ownership will not be chargeable to UK stamp duty or SDRT.
Purchases of RELX PLC ordinary shares, as opposed to ADSs, will generally give rise to UK stamp duty or SDRT at the time of transfer or agreement to transfer, normally at the rate of 0.5% of the amount payable for the ordinary shares. SDRT and UK stamp duty are usually paid by the purchaser. If the ordinary shares are later transferred to the depositary, additional UK stamp duty or SDRT may be payable as described above.
Inheritance tax
Subject to certain provisions relating to trusts and settlements, RELX PLC ordinary shares or ADSs held by an individual shareholder who is domiciled in the United States for the purposes of the Convention between the United States and the United Kingdom relating to estate and gift taxes and is not a UK national as defined in the Convention will not generally be subject to UK inheritance tax on the individual’s death (whether held on the date of death or gifted during the individual’s lifetime, and provided any applicable US federal gift or estate tax liability is paid), except where the ordinary share or ADS is part of the business property of a UK permanent establishment or pertains to a UK fixed base of an individual who performs independent personal services.
US Federal Income Taxation
Holders of the ADSs generally will be treated for US federal income tax purposes as owners of the ordinary shares represented by the ADSs. Accordingly, deposits of ordinary shares for ADSs and withdrawals of shares for ADSs will not be subject to US federal income tax.
Dividends
Dividends on RELX PLC ordinary shares or ADSs will generally be included in your gross income as ordinary dividend income from foreign sources. The dollar amount recognised on receiving a dividend in pounds sterling will be based on the exchange rate in effect on the date the depositary receives the dividend, or in the case of ordinary shares on the date you receive the dividend, as the case may be, whether or not the payment is converted into US dollars at that time. Any gain or loss recognised on a subsequent disposition or conversion of pounds sterling for a different US dollar amount generally will be US source ordinary income or loss. Dividends received will not be eligible for the dividends received deduction available to US corporations.
With respect to certain non-corporate US holders, certain dividends received from a qualified foreign corporation may be subject to reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the benefits of certain comprehensive income tax treaties with the United States. United States Treasury Department guidance indicates that the United Kingdom is a country with which the United States has an income tax treaty in force that meets these requirements, and RELX PLC believes it is eligible for the benefits of this income tax treaty. Individuals that do not meet a minimum holding period requirement during which they are not protected from the risk of loss or other requirements will not be eligible for the reduced rates of taxation. US holders should consult their own tax advisors regarding the application of these rules given their particular circumstances.
Subject to certain conditions and limitations, foreign withholding taxes on dividends withheld at the appropriate rate may be treated as foreign taxes eligible for credit or deduction against your US federal income tax liability. For purposes of calculating the foreign tax credit, dividends paid on the ordinary shares or ADSs will be treated as income from sources outside the United States and will generally constitute passive category income. Further, in certain circumstances, if you have held the ordinary shares or ADSs for less than a specified minimum period during which you are not protected from risk of loss, or are obligated to make payments related to the dividends, you will not be allowed a foreign tax credit for foreign taxes imposed on the dividends on the ordinary shares or ADSs. Individuals that treat a dividend as qualified dividend income may take into account for foreign tax credit limitation purposes only the portion of the dividend effectively taxed at the highest applicable marginal rate. The rules governing the foreign tax credit are
47
complex. US holders should consult their own tax advisors regarding the availability of the foreign tax credit or deduction under their particular circumstances.
Dispositions
You generally will recognise a gain or loss on the sale or other disposition of ordinary shares or ADSs in an amount equal to the difference between the amount realised upon the sale or other disposition and your adjusted basis in the ordinary shares or ADSs. The gain or loss generally will be capital gain or loss. It will be long term capital gain or loss if you have held the ordinary shares or ADSs for more than one year at the time of sale or other disposition. Long term capital gains of individuals are eligible for reduced rates of taxation. Deductions for capital losses are subject to limitations. Any gain or loss you recognise generally will be treated as income from US sources for foreign tax credit limitation purposes.
If you receive pounds sterling or euros on the sale or other disposition of your ordinary shares or ADSs, you will realise an amount equal to the US dollar value of the pounds sterling at the spot rate on the date of sale or other disposition (or in the case of cash basis and electing accrual basis taxpayers, if the ordinary shares or ADSs are traded on an established securities market, the settlement date for the sale or other disposition). Any gain or loss realised by a US holder between the sale date and the settlement date or on a subsequent disposition or conversion of pounds sterling into different US dollar amount generally will be US source ordinary income or loss. US holders will generally have a tax basis in the pounds sterling or the euros that you receive equal to the US dollar value of the pound sterling or euro received at the spot rate on the settlement date.
Information Reporting and Backup Withholding Tax
Dividends from ordinary shares or ADSs and proceeds from the sale or other disposition of the ordinary shares or ADSs may be reported to the Internal Revenue Service (“IRS”) unless the shareholder is a corporation or other exempt recipient. A backup withholding tax may apply to such reportable payments unless the shareholder (i) provides an accurate taxpayer identification number and otherwise complies with applicable requirements of the backup withholding rules or (ii) otherwise establishes a basis for exemption. The amount withheld under the backup withholding rules may be allowed as a credit against the holder’s US federal income tax liability and may entitle the holder to a refund, provided the required information is timely furnished to the IRS.
Certain US holders are required to report to the IRS information about their investment in ordinary shares or ADSs not held through an account with a domestic financial institution. Investors who fail to report required information could become subject to substantial penalties. US holders should consult with their own tax advisors about the effect of this legislation and any other reporting obligations arising from their investment in the ordinary shares or ADSs.
DOCUMENTS ON DISPLAY
The SEC maintains an internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC. This Annual Report on Form 20-F and other information filed or furnished by us with or to the SEC may be accessed through this website.
Our internet address is www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F.
ANNUAL REPORT TO SECURITY HOLDERS
We plan to submit the RELX 2024 Annual Report in electronic format as an exhibit to a report on Form 6-K furnished with the SEC on the date of this Annual Report on Form 20-F.
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ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
Our primary market risks are to changes in interest rates and exchange rates as well as liquidity and credit risk.
Net finance costs are exposed to interest rate fluctuations on debt, cash and cash equivalents. Upward fluctuations in interest rates increase the interest cost of floating rate debt whereas downward fluctuations in interest rates decrease the interest earned on floating rate cash and cash equivalents. Interest expense payable on fixed rate debt is protected against upward movement in interest rates but does not benefit from downward shifts. Our companies engage in foreign currency denominated transactions and are therefore subject to exchange rate risk on such transactions. Net finance costs are also exposed to changes in the fair value of derivatives (as a result of interest and exchange rate fluctuations) which are not part of a designated hedging relationship under IFRS 9 — ‘Financial Instruments’, and to ineffectiveness that may arise on designated hedging relationships. Our management of this interest rate risk and foreign exchange rate risk is described below.
We manage a portfolio of long-term debt, short-term debt and committed bank facilities to support our capital structure and are exposed to the risk that relevant markets are closed and debt cannot be refinanced on a timely basis. In addition, the credit spread at which we borrow is exposed to changes in market liquidity and investor demand. We manage this risk by maintaining a range of borrowing facilities and debt programmes with a maturity profile to limit refinancing risk.
We have a credit exposure for the full principal amount of cash and cash equivalents held with individual counterparties. In addition, we have a credit risk from the potential non-performance by counterparties to financial instruments; this credit risk normally being restricted to the amounts of any hedge gain and not the full principal amount being hedged. Credit risks are managed by monitoring the credit quality of counterparties and restricting the amounts outstanding with each of them. We are also exposed to changes in the market value of our venture capital investments.
Our management of the above market risks is described in further detail in note 17 to the consolidated financial statements under the heading ‘Financial Instruments’ on pages 169 to 175 and in note 21 under the heading ‘Debt’ on pages 176 to 177 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
Management of Interest Rate Risk and Foreign Exchange Rate Risk
We seek to manage our risk to movements in interest and exchange rates by means of derivative financial instruments, including interest rate swaps and forward foreign exchange contracts. We only enter into derivative financial instruments to hedge (or reduce) the underlying risks described above.
We enter into interest rate swaps in order to achieve an appropriate balance between fixed and floating rate debt, cash and cash equivalents and to manage the risk associated with movements in interest rates. Interest rate swaps are used to hedge the effects of fluctuating interest rates on floating rate debt, cash and cash equivalents by allowing us to fix the interest rate on a notional principal amount equal to the principal amount of the underlying floating rate cash, cash equivalents or debt being hedged. They are also used to swap fixed rate long term debt to floating rate. Such swaps may be used to swap an entire fixed rate bond for floating rate for its full term or they may be used to swap a portion of the principal amount or a portion of the term of the borrowing to floating rate. Similarly, we use forward foreign exchange contracts to hedge the transactional exposure arising from exchange rate movements on our foreign currency revenue and operating costs.
Where net finance costs are exposed to changes in the fair value of derivatives (as a result of interest and exchange rate fluctuations), we manage this risk by designating derivatives in a highly effective hedging relationship unless the potential change in their fair value is deemed to be insignificant.
Derivatives are used to manage the risk associated with interest rate and exchange rate movements and the Group does not enter into speculative derivatives. Derivatives used by the Group for hedging a particular risk are not specialised and are generally available from numerous sources.
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Sensitivity Analysis
The following analysis sets out the sensitivity of the fair value of our financial instruments to selected changes in interest rates and exchange rates. The range of changes represents our view of the changes that are reasonably possible over a one-year period.
The fair values of interest rate swaps and forward foreign exchange contracts set out below represent the replacement costs calculated using market rates of interest and exchange at December 31, 2024. The fair value of long-term debt has been calculated by discounting expected future cash flows at market rates.
Our use of financial instruments and our accounting policies for financial instruments are described more fully in note 17 to the consolidated financial statements under the heading ‘Financial Instruments’ on pages 169 to 175 of the RELX 2024 Annual Report and are incorporated herein by reference to Exhibit 15.2.
(a) Interest Rate Risk
The following sensitivity analysis assumes an immediate 100 basis point change in interest rates for all currencies and maturities from their levels at December 31, 2024 with all other variables held constant.
|
|
|
Fair Value |
|
Fair Value Change |
|
Fair Value |
|
Fair Value Change |
||||||||||
|
|
|
December 31, |
|
+100 |
|
-100 |
|
December 31, |
|
+100 |
|
-100 |
||||||
|
Financial Instrument |
|
2023 |
|
basis points |
|
basis points |
|
2024 |
|
basis points |
|
basis points |
||||||
|
|
|
(In millions) |
|
|
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
||
|
Short-term debt |
|
£ |
(220) |
|
£ |
— |
|
£ |
— |
|
£ |
(762) |
|
£ |
— |
|
£ |
— |
|
Long-term debt (including current portion) |
|
|
(6,229) |
|
|
231 |
|
|
(248) |
|
|
(5,723) |
|
|
241 |
|
|
(256) |
|
Interest rate swaps (swapping fixed rate to floating) |
|
|
(112) |
|
|
(104) |
|
|
112 |
|
|
(141) |
|
|
(88) |
|
|
94 |
A 100 basis point change in interest rates would not result in a material change to the fair value of other financial instruments.
At December 31, 2024, 56% of gross debt was at fixed rate. A 100 basis point reduction in interest rates would result in an estimated decrease in net finance costs of £26 million and £28 million in 2023 and 2024, respectively, based on the composition of financial instruments including cash, cash equivalents, bank loans and commercial paper debt at December 31, 2023 and December 31, 2024, respectively. A 100 basis points rise in interest rates would result in an estimated increase in net finance costs of £26 million and £28 million in 2023 and 2024, respectively.
(b) Foreign Exchange Rate Risk
The following sensitivity analysis assumes an immediate 10% change in all foreign currency exchange rates against sterling from their levels at December 31, 2024 with all other variables held constant. A +10% change indicates a strengthening of the currency against sterling and a -10% change indicates a weakening of the currency against sterling.
|
|
|
Fair Value |
|
|
|
|
|
|
|
Fair Value |
|
|
|
|
|
|
||
|
|
|
December 31, |
|
Fair Value Change |
|
December 31, |
|
Fair Value Change |
||||||||||
|
Financial Instrument |
|
2023 |
|
+10% |
|
-10% |
|
2024 |
|
+10% |
|
-10% |
||||||
|
|
|
(In millions) |
|
|
|
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
£ |
155 |
|
£ |
15 |
|
£ |
(15) |
|
£ |
119 |
|
£ |
12 |
|
£ |
(12) |
|
Short-term debt |
|
|
(220) |
|
|
(22) |
|
|
22 |
|
|
(762) |
|
|
(75) |
|
|
75 |
|
Long-term debt (including current portion) |
|
|
(6,229) |
|
|
(620) |
|
|
620 |
|
|
(5,723) |
|
|
(569) |
|
|
569 |
|
Finance lease receivables |
|
|
4 |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
Interest rate swaps (including cross currency interest rate swaps) |
|
|
(112) |
|
|
(11) |
|
|
11 |
|
|
(141) |
|
|
(14) |
|
|
14 |
|
Forward foreign exchange contracts |
|
|
46 |
|
|
(173) |
|
|
173 |
|
|
30 |
|
|
(135) |
|
|
135 |
A 10% change in foreign currency exchange rates would not result in a material change to the fair value of other financial instruments.
50
ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Fees and charges for American Depositary Receipt (ADR) holders
Citibank N.A., as depositary for the RELX PLC ADR programme, collects its fees for delivery and surrender of American Depositary Shares (ADSs) directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deductions from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.
|
Persons depositing or withdrawing shares must pay |
|
For |
|
|
|
|
|
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) |
|
Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property (in certain circumstances volume discounts may be available) |
|
|
|
|
|
|
|
Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates |
|
|
|
|
|
$0.05 (or less) per ADS |
|
Any cash distribution to ADS registered holders |
|
|
|
|
|
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs |
|
Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders |
|
|
|
|
|
$0.05 (or less) per ADS per calendar year |
|
Depositary services |
|
|
|
|
|
Registration or transfer fees |
|
Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares |
|
|
|
|
|
Expenses of the depositary |
|
Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement) |
|
|
|
|
|
|
|
Converting foreign currency to US dollars |
|
|
|
|
|
Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes |
|
As necessary |
|
|
|
|
|
Any charges incurred by the depositary or its agents for servicing the deposited securities |
|
As necessary |
Fees and other payments made by the depositary to the Group
In consideration of acting as depositary, Citibank N.A. has agreed to make certain reimbursements and payments to us on an annual basis for expenses related to the administration and maintenance of the ADR programme including, but not limited to, New York Stock Exchange listing fees, investor relations expenses, or any other programme related expenses. The depositary has also agreed to pay the standard out-of-pocket administrative, maintenance and shareholder services expenses for providing services to the registered ADR holders. It has also agreed with us to waive certain standard fees associated with promotional services, programme visibility campaigns and programme analytic reporting. In certain instances, the depositary has agreed to provide additional annual reimbursements and payments to us based on any applicable performance indicators relating to the ADR facility. There are limits on the amount of expenses for which the depositary will reimburse us, but the amount of reimbursement available to us is not necessarily tied to the amount of fees the depositary collects from investors.
From January 1, 2024 to February 20, 2025, we received a reimbursement of $175,000.00, net of withheld taxes, from the depositary for New York Stock Exchange listing fees, investor relations expenses and other programme related expenses, in connection with the ADR facility.
51
PART II
ITEM 15: CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
RELX PLC is required to comply with applicable US regulations, including the US Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), insofar as they apply to foreign private issuers. Accordingly, RELX PLC has established a Disclosure Committee comprising the Company Secretary of RELX PLC and other senior RELX managers appointed to provide assurance to the Chief Executive Officer and Chief Financial Officer of RELX PLC. The committee has reviewed and evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2024. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of RELX PLC have concluded that the disclosure controls and procedures for RELX PLC are effective as of the end of the period covered by this Annual Report on Form 20-F.
Management’s Annual Report on Internal Control over Financial Reporting
In accordance with Section 404 of the Sarbanes-Oxley Act, management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act, as amended. The internal controls over financial reporting of RELX PLC are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of the financial statements of RELX PLC would be prevented or detected.
Management conducted an evaluation of the effectiveness of its internal controls over financial reporting based on the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the internal controls over financial reporting of RELX PLC were effective as of December 31, 2024.
Certifications by the Chief Executive Officer and Chief Financial Officer of RELX PLC as required by the Sarbanes-Oxley Act are submitted as exhibits to this Annual Report on Form 20-F (see “Item 19: Exhibits” on pages S-3 and S-4).
Ernst Young LLP have audited the consolidated financial statements for the fiscal year ended December 31, 2024 and have audited the effectiveness of internal controls over financial reporting as at December 31, 2024. Their report in respect of RELX is included herein.
52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of RELX PLC
Opinion on Internal Control over Financial Reporting
We have audited RELX PLC’s (the “Group’s”) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated statements of financial position of the Group as at December 31, 2024 and 2023 and the related consolidated income statements, statements of comprehensive income, cash flows and changes in equity for each of the three years in the period ended December 31, 2024, and the related notes and our report dated February 12, 2025 expressed an unqualified opinion thereon.
Basis for Opinion
The Group’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Group’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst Young LLP
London, United Kingdom
February 12, 2025
53
Internal Control over Financial Reporting
Management, including the Chief Executive Officer and Chief Financial Officer of RELX PLC, have reviewed whether or not during the period covered by this Annual Report on Form 20-F, there have been any changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting of RELX PLC. Based on that review, the Chief Executive Officer and Chief Financial Officer of RELX PLC have concluded that there have been no such changes.
An outline of the internal control structure is set out below.
The Board of RELX PLC has adopted a schedule of matters which are required to be brought to it for decision. During 2024, the Board of RELX PLC exercised a supervisory role over the activities and systems of internal control of the Group.
The RELX PLC Audit Committee met on a regular basis to review the systems of internal control and risk management of the Group.
Audit Committee
RELX PLC has an Audit Committee which comprise only Non-Executive Directors, all of whom are independent. The Audit Committee, which meets regularly, was chaired by Suzanne Wood, the other members being Alistair Cox, June Felix, Charlotte Hogg and Andrew Sukawaty.
The main roles and responsibilities of the Audit Committee are set out in written terms of reference and include:
| (i) | to monitor the integrity of the financial statements, and any formal announcements relating to financial performance, reviewing significant financial reporting judgements contained in them; |
| (ii) | to review the company’s internal financial controls and the internal control and risk management systems; |
| (iii) | to monitor and review the effectiveness of the internal audit function; |
| (iv) | to make recommendations to the Board, for it to put to the shareholders for their approval in General Meeting, in relation to the appointment, reappointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor; |
| (v) | to review and monitor the external auditors’ independence and objectivity and the effectiveness of the audit process, taking into consideration relevant professional and regulatory requirements; and |
| (vi) | to develop and recommend policy on the engagement of the external auditor to supply non audit services, taking into account relevant ethical guidance regarding the provision of non audit services by the external audit firm, and to monitor compliance. |
The Audit Committee reports to the Board on its activities identifying any matters in respect of which it considers that action or improvement is needed and making recommendations as to the steps to be taken.
The Audit Committee has explicit authority to investigate any matters within its terms of reference and has access to all resources and information that it may require for this purpose. The Audit Committee is entitled to obtain legal and other independent professional advice and has the authority to approve all fees payable to such advisers.
The terms of reference for the Audit Committee are reviewed annually and a copy is published on our website, www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F.
54
ITEM 16A: AUDIT COMMITTEE FINANCIAL EXPERT
The members of RELX PLC’s Audit Committee are identified in “Item 6: Directors, Senior Management and Employees”. The members of the Board of Directors of RELX PLC have determined that the Audit Committee contains at least one financial expert within the meaning of the applicable rules and regulations of the SEC. The Audit Committee financial expert is Suzanne Wood. Suzanne Wood is considered independent.
ITEM 16B: CODES OF ETHICS
The Group has adopted a code of ethics (Code of Ethics and Business Conduct) that applies to all directors, officers and employees of the Group, as well as a separate code of ethics (Code of Ethics for Senior Financial Officers) that also applies to RELX PLC’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (collectively, the “Senior Financial Officers”). Both of these codes of ethics are available under “Policies downloads” of the Corporate Responsibility page at www.relx.com. The information on our website is not incorporated by reference into this Annual Report on Form 20-F. If the Code for Senior Financial Officers is amended or a provision waived, we intend to satisfy any disclosure obligations by posting information on the internet website set forth above within five business days of such amendment or waiver.
ITEM 16C: PRINCIPAL ACCOUNTANT FEES AND SERVICES
The aggregate fees billed by our principal accountant, Ernst Young LLP, are set forth in note 4 to the consolidated financial statements under the heading ‘Auditor’s remuneration’ on page 150 of the RELX 2024 Annual Report and incorporated herein by reference to Exhibit 15.2.
The Audit Committee of RELX PLC has adopted policies and procedures for the pre-approval of audit and non-audit services provided by the auditors. These policies and procedures are summarised below.
The terms of engagement and scope of the annual audit of the financial statements are agreed by the Audit Committee in advance of the engagement of the auditors in respect of the annual audit. The audit fees are approved by the Audit Committee.
The auditors are not permitted to provide non-audit services that would compromise their independence or violate any laws or regulations that would affect their appointment as auditors. They are eligible for selection to provide non-audit services only to the extent that their skills and experience make them a logical supplier of the services. The Chair of the Audit Committee must pre-approve the provision of all non-audit services by the auditors and will consider SEC rules and other guidelines in determining the scope of permitted services. All assignments other than audit-related work must be specifically pre-approved by the Audit Committee in advance of commissioning the work. Aggregate non-audit fees must not exceed the annual audit fees in any given year, unless approved in advance by the Audit Committee. All of the audit and non-audit services carried out in the year ended December 31, 2024 were pre-approved under the policies and procedures summarised above.
55
ITEM 16E: PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
During 2024, the Group repurchased a total of 28.9 million shares for total consideration of £1,000 million ($1,280 million) to be held in treasury.
During 2023 and 2024, the Employee Benefit Trust purchased 2 million and 2.2 million RELX PLC shares, respectively, in order to satisfy awards under our equity-based plans as described in “Item 6: Directors, Senior Management and Employees — Share Ownership”.
|
|
|
|
|
|
|
|
|
Approximate |
|
|
|
|
|
|
|
|
|
|
maximum |
|
|
|
|
|
|
|
|
Total shares |
|
value |
|
|
|
|
|
|
|
|
repurchased |
|
of shares that |
|
|
|
|
|
|
|
|
under |
|
may yet be |
|
|
|
|
Number of |
|
Average price |
|
publicly |
|
purchased |
|
|
|
|
ordinary |
|
paid per |
|
announced |
|
under the |
|
|
|
|
shares |
|
share |
|
programmes |
|
programmes |
|
|
January 2024 (1) |
|
3,541,587 |
|
3,218p |
|
3,541,587 |
|
£ |
36 million |
|
February 2024 (2)(3) |
|
4,693,069 |
|
3,414p |
|
2,527,356 |
|
£ |
800 million |
|
March 2024 (4) |
|
3,150,695 |
|
3,428p |
|
3,150,695 |
|
£ |
692 million |
|
April 2024 (4) |
|
3,599,408 |
|
3,339p |
|
3,599,408 |
|
£ |
572 million |
|
May 2024 (4) |
|
4,253,267 |
|
3,448p |
|
4,253,267 |
|
£ |
426 million |
|
June 2024 (4) |
|
3,512,237 |
|
3,574p |
|
3,512,237 |
|
£ |
300 million |
|
July 2024 (4) |
|
1,766,418 |
|
3,597p |
|
1,766,418 |
|
£ |
236 million |
|
August 2024 (4) |
|
1,596,700 |
|
3,544p |
|
1,596,700 |
|
£ |
180 million |
|
September 2024 (4) |
|
1,566,351 |
|
3,615p |
|
1,566,351 |
|
£ |
123 million |
|
October 2024 (4) |
|
1,713,857 |
|
3,619p |
|
1,713,857 |
|
£ |
61 million |
|
November 2024 (4) |
|
1,552,077 |
|
3,665p |
|
1,552,077 |
|
£ |
4 million |
|
December 2024 (4)(5) |
|
115,524 |
|
3,756p |
|
115,524 |
|
£ |
150 million |
|
|
|
31,061,190 |
|
|
|
28,895,477 |
|
|
|
| (1) | Includes amounts purchased under the £150 million ($192 million) non-discretionary buyback programme announced December 8, 2023. |
| (2) | Includes shares purchased to satisfy awards under our equity-based plans as described in “Item 6: Directors, Senior Management and Employees — Share Ownership”. |
| (3) | Includes amounts purchased under the £150 million ($192 million) non-discretionary buyback programme announced December 8, 2023 and the £850 million ($1,088 million) non-discretionary programme announced February 15, 2024. |
| (4) | Includes amounts purchased under the £850 million ($1,088 million) non-discretionary buyback programme announced February 15, 2024. This non-discretionary buyback programme was completed on December 3, 2024. |
| (5) | On December 6, 2024 RELX announced a non-discretionary buyback programme to repurchase further ordinary shares up to the value of £150 million ($192 million) in total between January 2, 2025 and February 7, 2025. A further 3.8 million RELX PLC shares have been purchased as at February 12, 2025, under this programme. |
On February 13, 2025 RELX PLC announced its intention to repurchase further ordinary shares up to the value of £1,350 million ($1,728 million) over the remainder of 2025.
56
ITEM 16G: CORPORATE GOVERNANCE
Details of our corporate governance practices are set out on page 54 of “Item 15: Controls and Procedures”.
Compliance with New York Stock Exchange Corporate Governance Rules
RELX PLC, as a company listed on the New York Stock Exchange (the “NYSE”), is subject to the listing requirements of the NYSE and the rules of the SEC. We also continually monitor our compliance with the provisions of the Sarbanes-Oxley Act that are applicable to foreign private issuers.
As a foreign private issuer, RELX PLC is only required to comply with certain of the NYSE corporate governance rules and is in compliance with all applicable rules. The NYSE’s rules also require disclosure of any significant ways in which our corporate governance practices differ from those required of US companies under the NYSE listing standards.
We follow UK corporate governance practice, which does not differ significantly from the NYSE corporate governance standards for foreign private issuers. We believe that our corporate governance practices do not differ in any significant way from those required to be followed by US companies under the NYSE corporate governance listing standards.
The NYSE listing standards provide that US companies must have a nominating/corporate governance committee composed entirely of independent directors and with a written charter that addresses the committee’s purpose and responsibilities which, at a minimum, must be to identify individuals qualified to become board members, develop and recommend to the Board a set of corporate governance principles and to oversee the evaluation of the board and management.
RELX PLC has a Nominations Committee and a Corporate Governance Committee. The written terms of reference adopted by the RELX PLC Board for these committees specify purposes and responsibilities that correspond to those of a US company’s nominating/corporate governance committee under the NYSE’s listing standards. The Nominations Committee and the Corporate Governance Committee are composed entirely of Non-Executive Directors.
ITEM 16J: INSIDER TRADING POLICIES
We have
57
ITEM 16K: CYBERSECURITY
Cybersecurity – Risk Management and Strategy
RELX takes measures to assess, identify, and manage material risks from cybersecurity threats, including the following:
| ● | We have established security programmes which are constantly reviewed and updated to address developments in the threat landscape with the aim of ensuring our ability to prevent, respond to and recover from a cybersecurity attack, that data is protected and our business infrastructures continue to operate. |
| ● | We have governance mechanisms in place to design and monitor common policies and standards across our businesses. |
| ● | We invest in appropriate technological and physical controls which are applied across the enterprise in a risk-based security programme which operates at the infrastructure, application, and user levels. These controls include, but are not limited to, infrastructure vulnerability management, application scanning and penetration testing, network segmentation, encryption and logging and monitoring. |
| ● | We provide regular training and communication initiatives to establish and maintain awareness of risks at all levels of our businesses. |
| ● | We have appropriate incident response plans to respond to threats and attacks which include procedures to recover and restore data and applications in the event of an attack. |
| ● | We maintain appropriate information security policies and contractual requirements for our businesses and run programmes monitoring the application of our data security and resilience policies by third-party service providers. |
| ● | We use independent internal and third-party auditors to test, evaluate, and help enhance our procedures and controls. |
| ● | We continuously monitor the global regulatory landscape to identify emerging cybersecurity, data protection and privacy laws, and, as needed, create implementation plans to comply with them. |
| ● | We procure appropriate cybersecurity insurance to mitigate the potential losses arising from a cybersecurity incident. |
RELX has a well-embedded risk management framework based on the Internal Control-Integrated Framework (2013) by the Committee of Sponsoring Organisations of the Treadway Commission (COSO). Through this framework, risks are identified, assessed, mitigated, and monitored in an effective and consistent way across its businesses. RELX uses the 3 Lines of Defence model and aligns its risk management and internal control systems with the COSO framework. Business Areas maintain risk management and internal control systems which are appropriate to the nature and scale of their activities and address all significant strategic, operational, financial, cybersecurity, legal, regulatory compliance, and reputational risks that they face.
RELX risk management is
The cybersecurity risk framework aligns with and feeds into the enterprise risk management framework. Specifically, the RELX Information Security Council (ISC), chaired by the Head of Information Assurance and Data Protection, has established and integrated processes to measure risk in each RELX business using qualitative and quantitative measures, including the factoring of industry risk events, attacks on RELX systems, and the investigation, remediation, and cost of incidents within each business. The risk assessment results drive future cybersecurity programme priorities within RELX and its businesses.
In support of these measures, RELX has built skilled cybersecurity teams. Members of the RELX cybersecurity teams have extensive experience and maintain industry certifications such as the Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM), Certified Ethical Hacker (CEH), The SANS Institute Global Information Assurance Certification (SANS GIAC), Certified Information Privacy Professional (CIPP), and Certified Information Security Auditor (CISA).
As noted above, the Company from time to time engages with
58
personally identifiable information. The Company also periodically completes ISO 27001 certifications, SOC 2 audit reports, and NIST Cyber Security Framework assessments for its businesses. In further support of its cybersecurity programme, the Company regularly engages independent researchers and penetration testers; and implements bug bounty programmes to proactively identity potential vulnerabilities and further mitigate risk.
The Company has defined and implemented a Third Party Provider
For a description of how risks from cybersecurity threats could
Cybersecurity – Governance
The RELX PLC Board
| ● | The Head of Information Assurance Data Protection updates the RELX Board of Directors semiannually on the state of the Company’s cybersecurity program. These updates consist of, but are not limited to, a discussion of the industry threat landscape and implications for the Company; an explanation of the current cybersecurity risk assessment for the Company; a description of key incidents, lessons learned, and new initiatives in the reporting period; a summary of key operational metrics; and focus areas and initiatives to mitigate current and future cybersecurity threats for the Company. |
| ● | The CTO Forum, defined below, updates the RELX Board of Directors annually, primarily on technology which includes key cybersecurity implications of technology projects. |
In addition, as noted above, the RELX PLC Audit Committee receives and discusses the IAA’s audit findings, which may include cybersecurity matters.
The Company has established three cross-functional senior-level forums which further coordinate governance over the technology which supports the mitigation of cybersecurity risks: the ISC, the RELX Technology Forum (CTO Forum), and the Security Governing Committee (SGC).
ISC
59
The ISC, among other functions:
| ● | oversees the development of the RELX cybersecurity strategy; |
| ● | liaises with management and operations across the Company to align cybersecurity objectives with the risk assessment, risk profile, and current and future business needs; |
| ● | assesses, communicates, and advises on the cybersecurity risks to the Company including on the use of legacy systems, emerging technologies, and industry threats; |
| ● | inventories cybersecurity risks and controls in place, and recommends the implementation of mitigating controls; |
| ● |
|
| ● | reviews cybersecurity trends, incidents, and lessons learned on a regular basis. |
The escalation points for the ISC are the CTO Forum and the SGC.
CTO Forum
SGC
60
PART III
ITEM 17: FINANCIAL STATEMENTS
The Registrant has responded to “Item 18: Financial Statements” in lieu of responding to this Item.
ITEM 18: FINANCIAL STATEMENTS
The information set forth under the headings ‘Consolidated income statement’, ‘Consolidated statement of comprehensive income’, ‘Consolidated statement of cash flows’, ‘Consolidated statement of financial position’, ‘Consolidated statement of changes in equity’ and ‘Notes to the consolidated financial statements’ on pages 140 to 186 of the RELX 2024 Annual Report is incorporated herein by reference to Exhibit 15.2.
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of RELX PLC
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of RELX PLC (the “Group”) as of December 31, 2024, and 2023, the related consolidated income statements, statements of comprehensive income, cash flows and changes in equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group at December 31, 2024, and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Group's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 12, 2025 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Group's management. Our responsibility is to express an opinion on the Group’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.
Uncertain tax positions
Description of the Matter
As more fully described in note 9 to the consolidated financial statements, the Group is subject to tax in numerous jurisdictions. Provisions related to uncertain tax positions totaled £168 million as at December 31, 2024. The Group’s operational structure gives rise to potential tax exposures that require management to exercise judgement in making determinations as to the amount of tax that is payable. The Group reports cross-border transactions undertaken between subsidiaries on an arm’s-length basis in tax returns in accordance with Organisation for Economic Co-operation and Development (OECD) guidelines. Transfer pricing relies on the exercise of significant judgement as it is reasonably possible for there to be a range of potential outcomes based on the
F-2
Group's interpretation of the applicable tax laws and regulations. As a result, the Group has recognised provisions for uncertain tax positions, the valuation of which requires judgement.
Auditing the Group’s provision for uncertain tax positions was complex due to the subjectivity in the completeness and quantification of the provision, given the range of possible outcomes and the judgement around the trigger for recognition or release impacting the provision and the effective tax rate.
How We Addressed the Matter in Our Audit
Our procedures included obtaining an understanding, evaluating the design and testing the operating effectiveness of internal controls over the tax provisioning process. For example, we tested controls over management’s review of the significant assumptions and judgements and approval of the uncertain tax position provisions recorded.
Our procedures on the uncertain tax positions included, among others, meeting with members of management responsible for tax to understand the Group’s cross-border transactions, status of the significant provisions, and any changes to management’s judgements in the year. We inspected correspondence with tax authorities and external advisors and obtained an understanding of matters considered by management to assess the recorded estimates and evaluated the completeness of the provisions recorded. With the support of transfer pricing specialists, we assessed management’s significant assumptions and judgements to record, release or re-measure provisions following tax audits, settlements and the expiry of timeframes with reference to other similar tax positions the Group has historically held and our knowledge of developments in the jurisdictions in which RELX maintain tax provisions. We tested the underlying schedules for arithmetic accuracy, as well as with reference to applicable tax laws. We evaluated the adequacy of the disclosures related to uncertain tax positions.
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/s/ Ernst Young LLP |
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We have served as the Group’s auditor since 2016. |
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London, United Kingdom |
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February 12, 2025 |
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F-3
GLOSSARY OF TERMS
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Terms used in this Annual Report on Form 20-F |
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US equivalent or brief description |
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Accruals |
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Accrued expenses |
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Adjusted earnings per share |
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Adjusted net profit attributable to shareholders divided by the total weighted average number of shares. This provides a measure of the Group’s earnings per share that is comparable from year to year. |
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Adjusted net profit attributable to shareholders |
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Net profit attributable to shareholders before amortisation of acquired intangible assets, other deferred tax credits from intangible assets and items treated as exceptional, acquisition and disposal related items, net interest on the net defined benefit pension balance, disposals and other non-operating items. This provides a measure of the Group’s profitability after tax attributable to shareholders. |
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Adjusted operating margin |
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Calculated as adjusted operating profit divided by revenue. This is a key financial measure used by management to evaluate performance and allocate resources |
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Adjusted operating profit |
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Operating profit before amortisation of acquired intangible assets, acquisition and disposal related items, and grossed up to exclude the equity share of finance income, finance costs and taxes in joint ventures and associates. This is a key financial measure used by management to evaluate performance and allocate resources and is presented in accordance with IFRS 8 — ‘Operating Segments’ |
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Allotted |
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Issued |
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Associate |
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An entity in which the Group has a participating interest and, in the opinion of the directors, can exercise significant influence on its management. |
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Called-up share capital |
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Issued share capital |
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Capital and reserves |
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Shareholders’ equity |
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Cash flow conversion |
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The proportion of adjusted operating profits converted into cash |
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Constant currency |
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Calculated using the previous financial year’s full-year average and hedge exchange rates. This provides a measure of year on year growth excluding the impact of exchange rate movements. |
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EPS |
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Earnings per ordinary share |
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Invested capital |
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Net capital employed, adjusted to add back accumulated amortisation and impairment of acquired intangible assets and goodwill, to remove non-operating investments and the gross up to goodwill in respect of deferred tax, and other items. This is used to calculate the return on invested capital. |
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Investments |
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Non-current investments |
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Freehold |
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Ownership with absolute rights in perpetuity |
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Interest receivable |
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Interest income |
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Net debt |
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Debt less cash and cash equivalents, related derivative financial instruments and finance lease receivables. This provides a measure of the Group’s level of indebtedness. |
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Net cash acquired |
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Cash less debt acquired with a business |
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Operating costs |
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Cost of sales plus selling and distribution costs plus administration and other expenses |
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Portfolio changes/effects |
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Changes in the portfolio relating to acquisitions, disposals and assets held for sale |
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Prepayments |
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Prepaid expenses |
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Profit |
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Income |
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Profit attributable |
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Net income |
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Share based remuneration |
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Stock-based compensation |
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Share premium |
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Premiums paid in excess of par value of ordinary shares |
S-1
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Return on invested capital |
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Post tax adjusted operating profit expressed as a percentage of average capital employed. This is a key financial measure used by management that demonstrates the efficiency of the use of capital. |
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Revenue |
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Sales |
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Underlying growth |
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Underlying growth rates are calculated at constant currency, excluding the results of acquisitions until 12 months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. This is a key financial measure as it provides an assessment of year-on-year growth excluding the impact of acquisitions, disposals, exhibition cycling and exchange rate movements. |
S-2
ITEM 19: EXHIBITS
Exhibits filed as part of this Annual Report on Form 20-F, or incorporated by reference
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1.1 |
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2.1 |
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2.2 |
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2.3 |
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2.4 |
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4.1 |
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4.2 |
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4.3 |
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4.4 |
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4.5 |
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4.6 |
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4.7 |
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4.8 |
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4.9 |
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4.10 |
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4.11 |
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4.12 |
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4.13 |
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4.14 |
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4.15 |
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4.16 |
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8.0 |
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List of subsidiaries, associates, joint ventures and business units |
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11.1 |
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11.2 |
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S-3
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12.1 |
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12.2 |
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13.1 |
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13.2 |
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15.1 |
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Independent Registered Public Accounting Firm’s Consent – Ernst Young LLP |
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15.2* |
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17.1 |
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97.1 |
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101.1 |
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The following financial information for RELX formatted in Inline XBRL: (i) Consolidated Income Statement for the years ended December 31, 2022, 2023 and 2024; (ii) Consolidated Statement of Comprehensive Income for the years ended December 31, 2022, 2023 and 2024; (iii) Consolidated Statement of Cash Flows for the years ended December 31, 2022, 2023 and 2024; (iv) Consolidated Statement of Financial Position at December 31, 2023 and 2024; (v) Consolidated Statement of Changes in Equity for the years ended December 31, 2022, 2023 and 2024; and (vi) Notes to the Consolidated Financial Statements |
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104 |
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Cover Page Interactive Data File - (formatted as Inline XBRL and contained in Exhibit 101). |
The total amount of long-term debt securities of the Group authorised under any single instrument does not exceed 10% of the total assets of the Group. The Registrant hereby agrees to furnish to the SEC, upon its request, a copy of any instrument defining the rights of holders of long-term debt of the Group or any of the businesses for which consolidated or unconsolidated financial statements are required to be filed.
The agreements and other documents filed as exhibits to this Annual Report on Form 20-F are not intended to provide factual information or other disclosure other than the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representation and warranties made by the registrant in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs at the date they were made or at any other time.
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* |
Certain of the information included within Exhibit 15.2 is incorporated by reference in this Annual Report on Form 20-F, as specified elsewhere in this Annual Report on Form 20-F. With the exception of the items and pages so specified, the RELX 2024 Annual Report are not deemed to be filed as part of this Annual Report on Form 20-F. For the avoidance of doubt, other information mentioned in or contained within the RELX 2024 Annual Report, including the content of the RELX website and other pages or sections of the RELX 2024 Annual Report referenced, but not contained, in the items and pages so specified are not deemed to be filed as part of this Annual Report on Form 20-F. |
S-4
SIGNATURES
The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.
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RELX PLC |
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Registrant |
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By: /s/ E ENGSTROM |
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E Engstrom |
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Chief Executive Officer |
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By: /s/ N LUFF |
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N Luff |
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Chief Financial Officer |
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Dated: February 20, 2025 |
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S-5