Pearson maintains outlook after solid first half

(Sharecast News) - Educational publisher and virtual learning company Pearson said it delivered a "solid" performance in the first half, with underlying sales and profits ahead of last year, as it reiterated its outlook for the next two years.

Sales totalled £1.75bn in the six months to 30 June, down from £1.88bn the year before but up 2% on an underlying basis when excluding results from its online learning arm sold last year and non-core operations that have been wound down.

Pearson said each business segment performed in line with expectations, with sales growth in Assessment & Qualifications, English Language Learning and Workforce Skills partly offset by declines in Virtual Schools sales, Virtual Learning and Higher Education.

Underlying adjusted operating profits were up 4% at £250m, with the adjusted profit margin improving to 14% from 13% a year earlier.

"Our good strategic and financial performance in the first half of the year sets us up to achieve our guidance for the current year and for 2025," said chief executive Omar Abbosh.

"We expect thereafter to continue to deliver attractive growth with progressive improvements in our margins alongside

Pearson said it expects to meet current market forecasts for 2024, with company-compiled consensus showing organic constant-currency sales growth of 3.7% and adjusted operating profits of £621m, down 8% on last year. The company also reiterated guidance for mid-single digit underlying sales compound annual growth from 2022 to 2025.