Pearson 1H operating profits jump, confident on meeting full-year expectations

31st Jul 2023 07:18

(Sharecast News) - Pearson posted stronger first half sales for a big jump in operating profits, together with an improved cash flow performance.

"Our excellent performance in the first half of 2023 means we are confident of achieving our full year expectations," chief executive officer Andy Bird said.

For the half to 30 June, the education and publising group Pearson reported a 6% rise in underlying sales, excluding its Online Program Management and Strategic Review businesses.

Total underlying sales were up by 4% to £1,879m

That helped drive a 44% rise in adjusted operating profits to £250m, alongside a "strong" operating cash flow performance which rose to £79m from £9m.

On a statutory basis, sales were 5% higher at £1,879m and operating profit improved to £219m from £148m.

Statutory earnings per share improved from 18.1p to 26.1p.

Management reiterated its guidance for group revenues, adjusted operating profits and profit margins.

The former were seen rising at a mid single-digit pace between 2022-25, while margins were pegged to increase at a clip at the upper end of a mid-teens range in 2025.

The dividend payout per share was bumped up from 66p to 7.0p.

Net debt increased from £810m to £911m.