- On track to achieve 2023 guidance

- £300 million share buyback announced

- English Language Learning Sales increased by 66%

Shares in Pearson (PSON) were up over 3% in morning trading, as the education publishing group reported a strong set of first quarter results.

The company reported underlying sales growth of 6%, with a 66% rise in English Language Learning sales attributed to ‘an outstanding contribution from Pearson Test of English’, an increase in market share in India and a temporary increase in skilled visa allocations in Australia.

Pearson reported a 6% rise in its Assessment & Qualifications division – driven by strength growth in Pearson VUE.

Workforce Skills sales grew 8%, driven by double-digit growth in Workforce Solutions, and continued growth in Vocational Qualifications. Sales are expected to build throughout the year, supported by the launch of the talent investment platform later this year.

Chief executive Andy Bird said: ‘Pearson has had a strong start to the year with results ahead of our expectations. This ongoing momentum is testament to our increasingly interconnected, consumer-focused, and innovative approach alongside relentless commercial execution. We delivered double-digit sales growth in our enterprise facing businesses, reflecting our strategy to address the upskilling and reskilling opportunity around the world.’

Pearson said it was ‘on track’ for the delivery of £120 million of cost efficiencies this year as well as being on track to achieve its 2023 guidance.

The education publishing group also said it would launch a £300 million share buyback in the second half of 2023.

VIRTUAL LEARNING INTEREST FALLS

However, the firm said sales fell by 14% in its virtual learning division and by 2% in its Virtual Schools division.

It blamed ‘the return of school offset by enrollment declines for the 2022/23 academic year and lower district partnership renewals.’

Higher Education sales were down 5% as expected, including the anticipated deferral of Pearson+ sales in the second quarter due to a revenue recognition shift.

Sales in businesses under Strategic Review fell by 50%, in line with company forecasts.

ANALYST UPBEAT

Roddy Davidson at Shore Capital was encouraged by the firm's execution of its strategic priorities, saying ‘We are pleased to note the continued progress and momentum highlighted in today’s statement and remain fundamentally positive on Pearson’s suitability to capitalise on the strong growth potential across the global learning market.’

LEARN MORE ABOUT PEARSON

Disclaimer: The author (Sabuhi Gard) owns shares in Pearson

 

 

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