8th Mar 2021 08:27
(Alliance News) - Pearson PLC on Monday maintained its payout and posted a profit rise helped by one-off gains, though the education publisher's revenue was hurt by Covid-19.
The company also set out a new digital-focused strategy, amid a market shift to online learning.
Pearson shares were 2.7% lower at 739.80 pence each in London on Monday morning.
In 2020, Pearson's revenue fell 12% to GBP3.40 billion from GBP3.87 billion in 2019. Pretax profit, however, was up 53% to GBP354 million from GBP232 million.
Profit was helped by Pearson posting GBP178 million in other net gains, up sharply from GBP16 million in 2019.
Adjusted operating profit fell 46% to GBP313 million from GBP581 million. The 2020 figure beat Vuma-compiled consensus estimates of GBP309 million.
By unit, Pearson's performance was a mixed bag. The year 2020 saw schools turn classroom lights off for prolonged periods as lockdowns forced institutions to do their teaching online.
Pearson's Global Online Learning arm posted sales growth of 18% as a result, though Global Assessment was down 14% and International fell 19%. North American Courseware posted a fall of 13%.
The company's performance was "in line with revised expectations post Covid-19", Pearson said.
It left its dividend unchanged at 19.5p per share.
"Despite the significant challenges of 2020, it is thanks to the tenacity and commitment of colleagues around the world that Pearson has delivered a solid financial performance. This year, as we recover from the impact of the pandemic, we are focused on delivering revenue and profit growth," Chief Executive Andy Bird said.
"Following significant investments in technology and comprehensive restructuring, Pearson is moving at pace and ready to enter a new era as a digital-first company, focused on delivering sustainable revenue and profit growth for the benefit of all company stakeholders."
Bird also outlined a new strategic focus for the FTSE 100 company. Pearson will now gear its efforts towards "digital learning, addressing the workforce skills gap and meeting the growing demand for dependable accreditation and certification", Bird added.
"Our existing assets, strong balance sheet, new organisational structure and priorities will enable us to seize these opportunities. As the global leader in learning, nobody else has the breadth and depth of experience, scale, expertise and relationships across the entire lifelong learning spectrum."
The company will now have five business divisions: Virtual Learning, Higher Education, English Language Learning, Workforce Skills and Assessment & Qualifications.
Pearson eyes "strong" long-term growth in the Virtual Learning and Workforce Skills businesses.
Rod Bristow, Pearson's Global Online Learning and UK business president will leave the company after a 35-year stint. Tom ap Simon, boss of Pearson's Virtual Schools business will take charge of the newly-created Virtual Learning unit. He will report to CEO Bird.
Chief Strategy Officer Mike Howells becomes interim president of Workforce Skills.
Chief Technology & Operations Officer Albert Hitchcock's work on Pearson's digital transformation is done, the company said, he will step down from the role but remain with the firm.
"He will continue to be part of the executive team and will work with Mike Howells on Pearson's business development strategy with large global technology companies," Pearson added.
By Eric Cunha; [email protected]
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