Reed Elsevier, which is axing up to 20 jobs in Oxford in the run-up to Christmas, has told shareholders they should see increased earnings this year and next.

Reed Elsevier shares rose 20p to 555p after it reassured investors it was on track to hit full-year targets, despite the continuing tough economic environment.

It said its educational publishing subsidiary Harcourt International, of Jordan Hill, north Oxford, where the job losses are happening, had been held back by a much lower UK primary schools market, compared to the previous year of significant curriculum change.

Elsevier Science, which has a base in Kidlington, had performed well, with higher medical book sales pushing revenue up in the second half.

Chief executive Crispin Davis said: "I am pleased to report that we are on track to deliver against our two key financial targets of above-market revenue growth and double-digit adjusted earnings growth."

The company said the share growth was predicted "despite the continuing difficult economic environment, from which none of the businesses is immune, but this does assume that there is no marked further deterioration".

A statement said: "We expect both science and medical divisions to outperform markets that are seeing growth somewhat constrained by pressures on institutional budgets.

"In the science and technology business, subscription renewals are strong, migration to electronic-only contracts is accelerating and sales of new information services, including backfiles and subject collections, are going well."

The Science & Medical business was expected to make good progress and the Education business was expected to see some recovery in its markets.

The statement said: "Given the tough trading environment, significant further cost actions have been taken in the second half of the year to protect and improve margins and release funds for investment in 2003."