Pearson PLC on Friday said its annual results were ahead of expectations for the second year in a row, as both revenue and profit rose by double-digit percentages.

The education publisher said sales rose by 12% to £3.84 billion for 2022 from £3.43 billion in 2021.

Sales were up 8% in Assessment & Qualifications and up 4% in Virtual Learning. In Higher Education, however, sales were down 4%, due to a decline in enrolments and a ‘loss of adoptions to non-mainstream publishers’, Pearson explained.

Pretax profit surged by 82% to £323 million from £177 million, as basic earnings per share grew to 32.8 pence from 23.5p.

Operating profit jumped to £271 million in 2022 from £183 million in 2021.

Adjusted operating profit was up 11% on an underlying basis to £456 million, slightly beating guidance of £455 million. This was driven by operating leverage on revenue growth and property cost savings, partially offset by inflation, Pearson said.

In a trading update back in January, Pearson attributed its 2022 performance to good results in English Language Learning, Virtual Learning, Workforce Skills, and Assessment & Qualifications, which were offset by an expected decline in Higher Education.

‘These results are testament to the strong momentum that we’ve been building operationally and strategically over the past 24 months. For a second consecutive year, our financial performance was ahead of expectations, and we saw progress in our strategic initiatives, which are taking Pearson on a new, exciting journey,’ said Chief Executive Andy Bird.

The company declared a 14.9 pence final dividend, up 4.9% from 14.2p a year prior. This brings the total annual dividend to 21.5p, also up 4.9% from 20.5p.

Looking ahead, Pearson said it is confident of achieving underlying sales growth of low to mid-single digit in 2023, with adjusted operating profit in line with current market expectations.

It expects revenue to increase in English Language Learning and Workforce Skills, but expects revenue in Higher Education to decline by a low-single-digit percentage, though with increased margins. It also expects revenue in Virtual Schools to decline by a mid-single-digit percentage due to the end of Covid-19.

Shares were down 2.2% at 902.40 pence each on Friday morning in London.

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