Publisher Reed Elsevier reported sales up nine per cent and promised to deliver higher growth by next year.

Its full-year results showed growth ahead of City analysts' expectations, with sales up to £3.8bn from £3.4bn, with adjusted profit down three per cent to £690m.

Chief executive Crispin Davis said the company, which employs several hundred people in Oxford and Kidlington, had made progress towards its goal of above-market revenue growth and double-digit earnings growth in 2002 and beyond, but admitted there was 'more to do'.

After a three-year restructuring programme, the company had met targets to transfer its core businesses to the Internet and saved £250m, he said. It plans to invest £290m this year in science, legal and education publishing.

Mr Davis added that despite the dot.com slump, Reed exceeded its online revenue target for the year by £36m because its strategy was based on subscriptions rather than advertising and e-commerce.

Last week, Reed's takeover of US publisher Harcourt General hit problems when it was referred to the Competition Commission.