Pearson unveils restructuring plan as it forecasts flat earnings

EDUCATION group Pearson said this morning it expects its 2013 earnings to be broadly flat on the prior year, as it launched a £150m restructuring plan.

Sales rose five per cent at constant exchange rates to £6.1bn over the full year, with digital and services businesses contributing 50 per cent of revenues.

Adjusted earnings per share fell three per cent to 84.2p over the full year.

The £150m restructuring plan announced this morning is expected to generate around £100m of annual cost savings from 2014, and Pearson plans to reinvest that sum to grow its digital and emerging markets business, as well as investment in further restructuring.

“Trading conditions are tough and structural changes mean many of our traditional publishing activities are under pressure,” said chief executive John Fallon, who took over from Marjorie Scardino in January.

“The restructuring of the company that we are announcing today is designed to strengthen dramatically Pearson's position in digital education services and in our most important markets for the future – and to enable us to capture the once-in-a-generation opportunity that comes with being the world's leading learning company,” he added.