Shares in education group Pearson (PSON) jumped 5.7% to 668p after the firm upgraded its full year annual profits guidance.
Pearson expects sales for the full year to rise by 8%, and adjusted operating profit of £385 million against a consensus forecast of £375 million.
ON-LINE LEARNING DRIVING UPGRADES
Many workers have started to re-assess their priorities in an increasingly tight labour market. On-line learning has become increasingly important for corporates in order to remain competitive and retain staff.
Sales at the Assessment and Qualification division increased by 18%, driven by robust demand for professional certification and assessment offerings. In addition, sales for the virtual learning division increased by 11% on a year on year basis.
This performance vindicates the new strategy adopted under former Disney executive Andy Bird, who has improved Pearson’s ability to assist businesses in training their staff.
The performance within higher education continues to be a disappointment with sales down 5% for the full year. This was driven by a 6% decline in strategically important American market which more than offset growth in the UK and Canada.
Commenting on the trading update, Shore Capital media analyst Roddy Davidson said he planned ‘to review our financial forecasts and to revisit our Hold recommendation following this update to reflect a growing conviction that the company has the potential to generate significant medium term growth.’
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