Pearson grows FY underlying sales and adjusted operating profits

Publishing company Pearson said on Friday that underlying sales and adjusted operating profits had both grown in 2021.

Underlying sales were up 8% year-on-year at £3.42bn, as assessment and qualifications revenues were up 18%, driven by 19% growth in professional certification as its OnVUE offering continuing to benefit from growth in the IT sector. US student assessment sales grew 17%, clinical assessment sales were up 30%, virtual learnings 11%, English language sales 17% and workforce skills 6%. Higher educations sales were down 5%.

Adjusted operating profits were up 33% on an underlying basis to £385.0m, driven by operating leverage on revenue growth and cost savings offsetting cost inflation and investment to accelerate future growth. Earnings per share improved from 28.7p in 2020 to 34.9p in 2021.

Pearson also stated it had delivered increased operating cash inflows on a headline basis, up from £315.0m in 2020 to £388.0m in 2021, due to the drop-through of increased operating profits and an improvement in net working capital that was partially offset by an increase in capital expenditure.

Chief executive Andy Bird said: "2021 has been a year of strong progress with the group's financial performance ahead of expectations. This reflects disciplined management of the business, operational execution, commitment of colleagues around the world and their ability to successfully navigate challenging market conditions.

"Pearson is a digital-first business, with consumer-grade products, and the momentum across the company underpins our confidence for further growth in 2022 and beyond."

As of 0905 GMT, Pearson shares had shot up 9.73% to 658.40p.