Pearson goes back to normal after Covid and announces higher sales and operating profit
Pearson announced stronger sales growth and operating profit for the first half of 2022 as it reaffirms expectations for the full year.
The education company’s underlying sales growth grew 6 per cent to £1.8bn as British and international examinations normalised after Covid disruptions.
The company’s adjusted operating profit rose by £33m to £160m due to strong trading performance, foreign exchange benefits, and property savings. Adjusted earnings per share also grew to 22.5p from 10.5p in the same period last year.
“We continue to make excellent strategic and operational progress, with momentum across the business,” said CEO Andy Bird.
“Our focus on delivery and execution remains and full year 2022 expectations are reaffirmed. We have a robust balance sheet which, together with our cash generation, will support continued investment in growth and create value for our shareholders.”
Pearson had net debt of £810m with available liquidity of about £1.2bn.
The company said it had maintained focus on driving higher returns via efficiency savings, with re-organisation of Pearson into five divisions taking responsibility for their full cost base, “enabling more efficient ways of working and operating as a business in a digital world.”
The company said it has identified further efficiencies of at least £100m for 2023.