Pearson reports full-year sales growth, reorganises some divisions
By Josh White
Date: Thursday 16 Jan 2025
(Sharecast News) - Pearson reported underlying sales growth of 3% for 2024 in an update on Thursday, excluding its online programme management (OPM) and strategic review businesses, alongside a 10% rise in adjusted operating profit to between £595m and £600m, equating to a 16.8% margin.
The FTSE 100 education publisher said the results were supported by strong cash flow conversion exceeding 100%, outpacing guidance.
It highlighted progress in key strategic areas, including enterprise and AI integration.
A multi-year strategic partnership with Microsoft had been launched, focusing on AI-driven innovation, joint go-to-market initiatives, and expanded collaboration through Pearson VUE.
Pearson also debuted an AI-powered digital language tutor, enhancing its English language learning offerings.
Segmental performance varied, with strong growth in English language learning, workforce skills, and assessment and qualifications, offset by declines in virtual schools and virtual learning.
English language learning posted an 8% sales increase for the year, driven by growth across institutional markets and a resilient Pearson Test of English performance despite policy headwinds.
Workforce skills grew 6%, fuelled by demand in both vocational qualifications and workforce solutions.
Virtual schools reported a 1% decline due to prior partner school losses, although enrollment in the 2024-2025 academic year increased 4% on a same-school basis.
Higher education saw modest growth of 1%, bolstered by digital subscription gains and adoption share improvements in the US.
The company announced a reorganisation of its workforce skills division into the enterprise learning and skills unit, aimed at sharpening its enterprise focus.
It said the unit, led by Vishaal Gupta, would consolidate its global enterprise sales capabilities and align with its strategic emphasis on workforce productivity and reskilling.
Pearson said it was entering 2025 with confidence, supported by a robust financial position, a strong balance sheet with net debt below £0.9bn, and continued investments in AI and enterprise solutions.
It said it would present its full-year results on 28 February, with further details on its strategic outlook.
"I am pleased with the progress Pearson has made in 2024, successfully executing against our financial and strategic priorities," said chief executive officer Omar Abbosh.
"I'm particularly encouraged to see the growing commercial momentum of our AI enhanced offerings and the strategic enterprise partnerships that we have established, such as the latest with Microsoft."
Abbosh said the partnerships reflected the strength of Pearson's proposition, as well as the opportunities ahead.
"The group is well positioned, with continued confidence, as we look to build on our strategic and operational progress and deliver long-term future value for our shareholders."
At 0842 GMT, shares in Pearson were down 2.32% at 1,265p.
Reporting by Josh White for Sharecast.com.
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