Business Strategy and Outlook| Michael Field, CFA |
Over the past decade, RELX has undergone wholesale changes to the structure of the company, taking its exposure to electronic-format businesses from 35% to closer to 90%. This change was achieved primarily through a series of targeted acquisitions and disposals over the years. The company has managed to significantly drive operating margin growth with the improved business mix. Since 2005, operating margins have expanded by close to 50%. This has also been reflected in returns on invested capital, which have increased on an adjusted basis from close to 8% in 2009 to close to 13% in 2021, against a weighted average cost of capital of just 8.3%.