Pearson swings to loss on Covid-19 impact but sees H2 recovery

UK education publisher Pearson swung to a first-half loss due to the impact of the coronavirus, but said it expected to deliver adjusted operating profit broadly consistent with expectations.

The company made an adjusted operating loss of £23m for the six months to June 30, compared to a £144m profit a year ago.

Chief executive John Fallon said Covid-19 had “a major impact on trading, but we are encouraged by the improving trends and pick up in sales in June”.

“The long-term shift to online learning is accelerating. The lead indicators of digital take up of our products are encouraging, and signals that our focus on experience, outcomes and affordability will prove a winning combination."

Pearson said it remained difficult to predict the ultimate disruptive impact of the COVID-19 pandemic on full-year performance.

“However, the second quarter performed in line with our expectations and, while risks remain, particularly around enrolments in the back to school period and local lockdowns impacting schools reopenings, based on our current assessment of these trends we are on track to deliver adjusted operating profit broadly consistent with market expectations.”