19th Jan 2022 09:15
(Alliance News) - Pearson PLC announced on Wednesday that its strong year of trading would see sales growth and profit exceeding their guidance.
Pearson's share price rose 5.3% to 666.20 pence on Wednesday morning, the best performer in the FTSE 100 index.
The London-based educational publisher expects to report an annual adjusted operating profit of around GBP385 million, 2.7% higher than prior estimates of GBP375 million. It also marks a 23% increase year-on-year from an GBP313 million.
However, this is far from a full recovery from the pandemic, coming in 34% lower than GBP581 million in 2019, with the three years prior all exceeding the GBP500 million mark.
Pearson's total underlying sales were up 8% year-on-year, with weaker growth in the final quarter of 1%.
Pearson saw a strong performance in its largest business of Assessment & Qualifications, with sales up 18%. The publisher said this was due to the strength of professional certification which grew by 30% to GBP16.8 million, as well clinical assessment and student assessment in the US, following a recovery from Covid-19.
Sales volumes of Pearson's online proctoring service OnVUE grew by 46% over the year, reflecting the demand for remote testing. Fourth-quarter sales were up by only 2% year-on-year, with growth in US student assessment offset by a decline in professional certification sales, and strong comparators with the previous year.
Virtual learning grew by 11% for the year, but dropped by 4% in the fourth quarter, and there was a 17% growth in virtual schools. Online program management sales grew by 7% over the year, and 8% in the final quarter. Strong growth was also seen in its Workforce Skills and English Language Learning businesses.
Sales in the Higher Education business were down by 5% for the year, after a 6% drop in demand in US HE courseware offset growth in UK and Canadian courseware sales.
Pearson said it had a "strong" balance sheet and cash performance, with a net debt of less than GBP400 million.
Andy Bird, Pearson Chief Executive said: "We made great progress in Q4 and are delivering a strong full year performance, with sales growth and profit exceeding our original guidance. Led by a strong management team, we are repositioning the business, driving digital innovation and an increased focus on the consumer through the launch of Pearson+. We are well placed to build on this momentum in the year ahead and look to the future with confidence."
Full-year results will be announced on February 25.
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Pearson