Group sales reached £1.72bn, with growth across most divisions, including a 4% rise in Higher Education and Enterprise Learning & Skills
LONDON: Pearson Plc, the global education group, delivered a stable first-half performance, with underlying group sales rising 2% and adjusted operating profit increasing by the same margin to £242m.
The company reported strong free cash flow of £156m, bolstered by a £114m state aid tax recovery, and confirmed it remains on track to meet full-year guidance, with stronger growth anticipated in the second half.
Group sales reached £1.72bn, with growth across most divisions, including a 4% rise in Higher Education and Enterprise Learning & Skills. However, Virtual Learning and English Language Learning saw modest declines, in line with expectations. Adjusted operating profit rose 2% on an underlying basis, though currency headwinds and higher finance costs led to a dip in adjusted earnings per share to 24.5p.
Pearson’s cash performance improved significantly, with free cash flow up £129m year-on-year, supported by disciplined working capital management. The company also strengthened its balance sheet, reducing net debt to £1bn, while continuing shareholder returns—a 5% dividend increase and a £350m share buyback, of which £169m has already been executed.
CEO Omar Abbosh highlighted Pearson’s rapid advancement in AI-powered education tools and enterprise partnerships, including collaborations with Microsoft, AWS, and Google Cloud. The company also expanded its vocational and professional assessment offerings, securing contracts with the UK Ministry of Defence and integrating McGraw Hill’s K-12 curriculum solutions.
Recent acquisitions, such as eDynamic Learning, enhance Pearson’s early-career education strategy, while new products like the AI-driven “Go Deeper” study tool and Pearson English Express Test aim to capture additional market share.
Pearson reaffirmed its 2025 guidance, expecting mid-single-digit sales growth and sustained margin improvement. Abbosh expressed confidence in the firm’s ability to drive consistent growth through innovation and operational efficiency.