SIR CRISPIN DAVIS, chief executive of Reed Elsevier, yesterday dismissed fears that the company’s scientific publications arm was coming under mounting competitive and political pressure.

Reed Elsevier, the world’s biggest publisher of scientific periodicals, is under fire for the price increases it levies on libraries for access to its publications, which include Brain Research and The Lancet.

Critics argue that the scientific community should abandon seeking publication in journals of the type that Reed owns in favour of the “open-source” model, in which authors pay to have their research made public.

“After five years, the author-pays model has gained a 1 per cent market share,” Sir Crispin said as the Anglo-Dutch group reported interim results. “Libraries do push back on costs, but we are securing a 96 per cent renewal rate, and that tells the real story.”

This year, Elsevier, the scientific publishing division, is proposing a 5.5 per cent price increase — above the rate of inflation. Sir Crispin said the increase was justified because the company was increasing the content it was producing and investing in new electronic features.

Elsevier earned £204 million operating profit in the six months to June 30, down from £219 million a year ago. Profit margins decreased by 1 percentage point to 32 per cent, following what the company said were increased levels of investment.

Last month, MPs on the Commons Science and Technology Committee called on the Government to create a free national archive of all scientific publications, and accused Reed of “not being transparent” about its costs.

At that time, Ian Gibson, MP, the committee’s chairman, went further and accused commercial publishers of “ripping off the academic community”. According to the committee, the price of scientific publications has increased by 58 per cent since 1998.

The report is now in the hands of the Government, which has to decide what measures to adopt. Executives at Reed are privately confident that any measures adopted will not have a major impact on business.

Overall, Sir Crispin said that he expected group earnings growth to increase into “double digits” in 2005 as demand picks up. After several difficult years, advertising in business-to-business publishing is forecast to stabilise in the second half and improve next year.

Overall, pre-tax profits for the group totalled £222 million, compared with £216 million the year before. Profits attributable to Reed’s London shareholders were £57 million, and the dividend is 3.4p.

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