Anglo-Dutch publishing group Reed Elsevier PLC (ENL) Thursday said it plans to raise hundreds of millions of pounds in a share placing aimed to strengthen its balance sheet as it reported a higher adjusted operating profit for the first half of the year, and said the outlook remains challenging.

Reed Elsevier said it plans a share placement of up to 9.9% of issued share capital, or 109.2 million new shares. The company said it aims to strenghten its balance sheet after it failed to sell its Reed Business Information unit, and it raised debt to acquire ChoicePoint.

"The downturn in macro-economic conditions over the last year has been severe and unprecedented", Chief Executive Ian Smith said in a statement. "The depth and length of the downturn is however having some effect on even our most resilient businesses."

Smith said the strengthening of the balance sheet will ensure the company is appropriately resourced.

Meanwhile, Reed also reported an adjusted operating profit, a figure closely watched by analysts and which includes amortization, joint-ventures and exceptional items, of GBP782 million, up 26% compared with GBP619 million last year. In constant currencies however, adjusted operating profit was up only 5%.

Revenue for the first half rose 25% to GBP3.06 billion, and 3% in constant currencies, chiefly as a result of the acquisition of ChoicePoint.

Shares Wednesday closed at EUR8.35 in Amsterdam. Reed is jointly listed in Amsterdam and London.

Company Web Site: www.reed-elsevier.com

- By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201; maarten.vantartwijk@dowjones.com