Pearson PLC

Latest Results (20.08.2024):

Revenue Performance

Pearson PLC reported sales of £1,754 million for the first half of 2024, compared to £1,879 million in the same period of 2023. This represents a slight decline in revenue, but the company noted underlying Group sales growth of 2%, excluding OPM and Strategic Review businesses.

Operating Profit

The adjusted operating profit for Pearson PLC remained steady at £250 million for both H1 2024 and H1 2023. The company highlighted a 4% growth in underlying adjusted operating profit, driven by trading performance, net cost phasing, and savings, partially offset by inflation and restructuring charges in Higher Education.

Cash Flow

Pearson PLC saw a significant improvement in free cash flow, which increased by £77 million to £27 million in H1 2024, compared to a negative free cash flow of £50 million in H1 2023. Operating cash flow also rose to £129 million from £79 million in the previous year, supported by good underlying fundamentals and some phasing and FX benefits.

Dividends and Share Buyback

Pearson PLC announced a proposed interim dividend of 7.4p per share, up 6% from 7.0p in H1 2023. The company also continued its share buyback program, repurchasing £163 million worth of shares by 30th June 2024, representing 81% of the total £200 million buyback extension.

Future Outlook

Pearson PLC reiterated its guidance for 2024 and 2025, expecting to deliver mid-single digit underlying sales CAGR and sustained margin improvement beyond 2025. The company aims to drive performance in its core business, execute synergies, and expand into adjacent markets, supported by demographic shifts and advances in AI.