Pearson – a lesson in resilience as guidance is upgraded
- Underlying revenue growth rose 5% in first nine months of the year
- Full year underlying operating profit expectations upgraded by £20m
- Assessment & Qualifications and English Language Learning among strong performers
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown:
“Every day’s a school day and educational specialist Pearson can teach us all a thing or two about resilience. While the wider economy is under pressure, the likes of vocational testing, English Language Learning and broader assessments and qualifications are all being taken up in force, boosting Pearson’s top and bottom line. At a time when economic wheels creak is often a time when we see increased demand for upskilling and retraining, which means that even in the face of a recession, Pearson has enviable assets.
This isn’t just a case of helpful trends, Pearson has put in an enormous amount of legwork to improve its digital offering and reduce exposure to the declining physical courseware sector. The biggest question now is where meaningful growth will come through – the incoming CEO’s being handed a company in much better condition and with the grunt work now complete, making his mark could be a trickier task.”
