27th Apr 2007 07:01
Pearson PLC27 April 2007 27 April 2007 PEARSON: AGM TRADING UPDATE Pearson is today providing the following trading update at its Annual GeneralMeeting. Pearson reported record results in 2006 and our good trading has continued inthe early part of 2007. We have performed well in the major school textbookadoptions; continued to roll out our innovative online learning and assessmentplatforms in Higher Education; published a string of bestsellers in Penguin; andachieved steady growth in both advertising and circulation at FT Publishing. We are trading in line with expectations for 2007 and expect to achieve goodunderlying earnings growth, cash conversion ahead of our 80% threshold, and afurther increase in return on invested capital. As always, our sales and profitswill be concentrated in the second half of the year. Our expectations for the full year remain: • School to achieve underlying sales growth in the 4-6% range withmargins improving; • Higher Education sales to grow in the 3-5% range with stable margins; • Professional revenues to be broadly level with margins improving; • Penguin margins to improve further, as our publishing investment andefficiency programmes continue to bear fruit; • Financial Times Group profit to grow strongly with our cost measures,integration actions and revenue diversification pushing margins into doubledigits at FT Publishing. IDC revenues to grow in the 6-9% range with net incomegrowth in the high single-digits to low double-digits (headline growth under USGAAP). Marjorie Scardino, chief executive, said: "We've achieved strong growth with aconsistent strategy: leading content, services and technology to make it morevaluable, international expansion and ongoing efficiency measures. Thoseadvantages, and our solid start to the year, make us confident that 2007 will beanother good year for Pearson." Pearson generates about two-thirds of its sales in the US and each five centchange in the average £:$ exchange rate for the full year would have an impactof approximately 1p on adjusted earnings per share. The average £:$ exchangerate was £1:$1.84 in 2006 and £1: $1.96 in the first quarter of 2007. For more information: Luke Swanson/ Simon Mays-Smith/ Deborah Lincoln + 44 (0) 20 7010 2310 Note: growth rates are stated on an underlying basis, excluding portfoliochanges and currency movements. Pearson's AGM takes place today at the Queen Elizabeth II Conference Centre,Broad Sanctuary, London SW1P 3EE at 12 noon. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Pearson