Pearson 2022
Nine Month
Trading Update
24th October 2022
1
Forward-looking statements
Except for the historical information contained herein, the matters discussed in this statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated costs savings and synergies and the execution of Pearson's strategy, are forward- looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. They are based on numerous assumptions regarding Pearson's present and future business strategies and the environment in which it will operate in the future.
There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition.
They also include other risks detailed from time to time in Pearson's publicly-filed documents and you are advised to read, in particular, the risk factors set out in Pearson's latest annual report and accounts, which can be found on its website
(pearsonplc.com).
Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward- looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on such forward- looking statements.
2
Highlights
Strong nine month financial performance, full year expectations reaffirmed
Delivering strategic progress by reshaping our portfolio and increasing interconnectivity
On track to deliver at least £100m of efficiencies in 2023
Strength of performance broad-based across our divisions
Confident of being able to navigate the challenging macroeconomic environment
3
Strong financial performance
- Strong trading performance with an outstanding result in English Language Learning. Group underlying sales up 7%
- Disposals of our international courseware local publishing businesses in Europe, French-speaking Canada and Hong Kong now complete
- Full year sales and adjusted operating profit expectations reaffirmed
Assessment & | Virtual Learning | Higher Education | ||
Qualifications | revenue | revenue | ||
revenue | ||||
12% | 5% | (4)% | ||
English Language | Workforce Skills | Group revenue | ||
Learning revenue | revenue | |||
28% | 9% | 7% | ||
4
2022 Group expectations reaffirmed
Group outlook
- 2022 consensus on the website at full year 2021; median adjusted operating profit of £416m @ £:$ 1.37
- Every 1c movement in £:$ rate equates to approximately £3m adjusted operating profit
- Therefore, an indicative forecast average £:$ rate of 1.27 would add approximately £30m to adjusted operating profit
- Disposals of international local courseware publishing businesses reduces 2022 adjusted operating profit by c.£15m
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Pearson plc published this content on 24 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2022 07:39:05 UTC.