RELX

RELX possesses the hallmarks of an outstanding business with economically resilient assets that should continue to generate steady growth in revenue, earnings and dividends throughout the economic cycle.

An experienced management team is in place which continues to deliver on its strategic objectives through a sensible allocation of capital. RELX’s businesses are internationally diversified and each holds a strong market position.

Underlying organic growth is generally solid, margins are excellent, returns on invested capital are good and profits are converted efficiently into cash. Prospects remain positive as RELX invests heavily in research and development to combine its rich data assets and technology infrastructure with next generation products, such as machine learning and natural language processing.

RELX provides information, analytics, and decision tools across scientific, technical, medical, legal, and business sectors. Data privacy and the secure handling of sensitive customer and legal information is a key challenge as data breaches could result in reputational damage, loss of consumer trust and legal liabilities. Cybersecurity is therefore a material risk for the company.

RELX operates a number of energy-intensive data centres. These facilities require substantial electricity and large water volumes for cooling, contributing to environmental concerns. Whilst its greenhouse gas emissions have been reducing, the company predominantly occupies leased locations where there are few opportunities for onsite generation. This means that RELX relies heavily on the availability of green tariffs, which can fluctuate.

The company’s operations also extend to regions with poor labour standards and limited environmental oversight, raising further social and environmental concerns.