Pearson, the learning company, has released an interim management statement for the first three months of 2013 (release). The firm announced that it is trading in line with expectations as sales including Penguin rose by three per cent to £1.2bn. Presssure on education budgets, college enrolments, retail consolidation and a shift from print to digital are expected to contribute to a challenging external environment in 2013.
A globally growing middle class offers Pearson with greater opportunities however, and Pearson expects to expense £150m of restructuring costs to take advantage of this. The firm will aim to accelerate a transition from print to digital and from developed to developing economies. Pearson will also begin to separate off the Penguin brand in preparation for the Penguin Random House merger.
The firm expects first half operating profits to be lower than last year, with profits heavily weighted to the second half. The Financial Times Group is said to be facing weak trading conditions for advertising.