Word out on publisher

REED Elsevier provides scientific, technical and medical information through electronic and printed journals, text books and reference works.

Its main subsidiaries include business information provider LexisNexis, Reed Exhibitions and Reed Business Information, which publishes magazines.

Reed is unlikely to have created capital gains problems for long-term holders; the share price is now back where it was ten years ago. However, prospects now may look rather more encouraging. A new chief executive, Eric Engstron, was appointed in November following the departure of his predecessor after only eight months.

The group does have its problems. It is burdened with debt, with more than $4.1 billion (2.5bn) incurred on the 2008 acquisition of the data-aggregation firm ChoicePoint. It has been attempting to address this, recently announcing it was in advanced talks to sell some of its US trade magazines, although it had failed to find a buyer for the entire division. This followed the company's failure to sell its Business Information division last year. The new team is now on notice to perform.

As a result, the February trading statement will be studied closely. Reed needs to provide positive evidence of a company in change, addressing its balance sheet challenges and the pressures of its core markets that, for example, are implied by the internet.

However, the undemanding expectations may result in some pleasant surprises on the upside, while the stock yields a perfectly satisfactory 4 per cent. Reed has been attracting some favourable comment of late and there is no doubting the underlying worth of the group's assets. The shares could be an interesting prospect at these levels.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.