Academic publishing firm Pearson (PSON) gained 5.3% to 800.4p as the market reacted positively to resilient full-year results and recently appointed CEO Andrew Bird’s new strategy.
The company posted a rise in annual profit after it benefited from the sale of a stake in publishing group Penguin Random House and lower restructuring charges.
Underlying earnings, however, fell after the pandemic led to school closures and disrupted exam schedules.
Pre-tax profit for the year through December increased to £354 million, up from £232 million year-on-year, even as revenue fell 12% to £3.40 billion.
Adjusted operating profit dropped 46% to £313 million, which the company said was in line with revised expectations. Pearson held its annual dividend steady at 19.5p per share. The company said 2021 would see a return revenue growth, which again would be in line with expectations.
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Looking ahead, Pearson said it expected to achieve year-on-year revenue growth in 2021 with adjusted operating profit in line with current market expectations.
Bird commented: ‘Pearson's strategy is now geared around three key demand-led global market opportunities which play to all our strengths: the rise in online and digital learning; addressing the workforce skills gap; and meeting the growing demand for dependable accreditation and certification.’
Shore Capital analyst Roddy Davidson said: ‘On a first-pass basis, we are encouraged by the in-line performance and growth-focused strategy described in this morning’s release.
‘We also like Pearson’s financial strength, growing exposure to/substantial sunk investment in digital products and its status as a beneficiary of a positive medium-term outlook for global learning spend.’
