Pearson Confirms Full-Year Outlook After Robust First Half
Pearson, a FTSE 100 education company, reported a pretax profit of £212 million ($272.8 million) for the first half of the year ending June 30, down from £236 million the previous year. Despite the decline, the company's adjusted operating profit remained flat at £250 million. Sales in the Assessment & Qualifications segment grew by 2%, helping to offset a decline in US Student Assessments. However, sales in the Higher Education segment fell by 2%, and Virtual Learning sales decreased by 8%, largely due to the completion of an online program management contract with Arizona State University in early 2023. Pearson maintains its full-year expectations for 2024, anticipating underlying sales growth and adjusted operating profit to align with current market projections.
In the first half of 2024, Pearson reported a 2% increase in underlying group sales and a 4% rise in underlying adjusted operating profit to £250 million. The company noted strong free cash flow and a robust balance sheet, which supported a £500 million share buyback and a 6% dividend increase. Pearson expects to meet its full-year 2024 expectations and projects mid-single-digit growth and margin improvements beyond that period.
For the six months to June 2024, Pearson recorded a 2% underlying sales growth, excluding non-core businesses, and a 4% increase in adjusted operating profit to £250 million. The company plans to expand into larger, higher-growth markets, focusing on early careers and enterprise skilling. Pearson's outlook for underlying sales, adjusted operating profit, and tax for 2024 remains consistent with market expectations, with the company aiming for mid-single-digit growth and improving margins beyond 2025.
