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(Alliance News) - Pearson PLC on Wednesday said that it traded ahead of expectations last year, after maintaining strategic and operational momentum.
Pearson is a London-based media company which provides publishing and assessment services to schools and corporations, as well as for students directly.
Following a year of "strategic and operational progress", the company expects group underlying sales to be up by 5% for the full year.
Adjusted operating profit is expected at GBP455 million, up 11% on an underlying basis compared to 2021, and ahead of expectations.
Pearson attributed its 2022 performance to good results in English language learning, virtual learning, workforce skills, and assessment & qualifications, which were offset by an expected decline in higher education.
Assessment & qualifications sales rose by 8%, with strong performances in the US and UK segments as exams resumed. Sales in the clinical assessment also grew, driven by good government funding and continued focus on health and well-being.
Pearson attributed the 4% drop in higher education sales to a decline in enrolments, as well as a loss of adoptions to non-mainstream publishers, including open educational resources.
Reflecting on the year ahead, the company said it has accelerated its improved margin expectation to 2023 from 2025. It is currently on track to deliver GBP120 million of cost efficiencies in 2023, weighted to higher education. GBP20 million of these efficiencies will be used to offset ongoing inflationary pressures.
"Pearson has completed the year ahead of our original expectations. This performance demonstrates focused execution and the ongoing momentum in the business as we continue to implement our new strategy that underpins our future growth. Pearson is well positioned to make further progress reflecting the structural growth in our markets, the continued need for upskilling and reskilling, and the strength of our offering," said Chief Executive Officer Andy Bird.
Pearson's full year results will be announced on March 3.
Company shares were trading 0.6% higher at 921.60 pence each in London on Wednesday morning.
By Holly Beveridge; Alliance News reporter
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