28th Feb 2025 10:42
(Alliance News) - Pearson PLC on Friday launched a new share buyback and reiterated financial guidance noting "good momentum" across the business.
The London-based educational publisher said pretax profit rose 3.4% to GBP510 million in 2024 from GBP493 million in 2023, despite a 3.2% drop in sales to GBP3.55 billion from GBP3.67 billion in 2023.
Pearson's Chief Executive Omar Abbosh said: "2024 was another year of delivery and strategic progress for Pearson. The application of innovative technologies, like AI, in our learning experiences, alongside a sharper focus on how we go to market, is building good momentum across our businesses."
Assessment & Qualifications delivered a "solid performance", the firm, said, with sales up 3% in 2024 and accelerating in the second half. Virtual Schools sales decreased 1%, due to the previously announced partner school losses, it added.
Higher Education returned to growth with sales increasing 1%, English Language Learning delivered a strong performance with sales growth of 8%, and Workforce Skills sales grew 6%.
Pearson said the underlying performance was driven by sales growth and cost efficiencies, partially offset by investment and inflation. Adjusted operating profit margin rose to 16.9% in 2024 from 15.6%.
The firm said its outlook for 2025 was "positive" and in line with market expectations. It reiterated medium-term guidance for mid-single digit underlying compound annual sales growth and sustained margin improvement that will equate to an average increase of 40 basis points per annum.
Further progress on AI and Enterprise are priorities and the company announced a new strategic partnership with Amazon.com Inc unit, Amazon Web Services.
This aims "to accelerate the delivery of AI-powered learning for millions of people around the world and enhance the learner experience for Pearson’s products and services," the firm said in a statement.
Pearson announced a GBP350 million share buyback. It declared a 16.6 pence final dividend, up 5.7% from 15.7p, taking the full-year payout to 24.0p, also up 5.7% from 22.7p.
Shares in Pearson rose 2.5% to 1,369.00p each in London on Friday morning.
By Jeremy Cutler, Alliance News reporter
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