Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]
January 17 2024 - 8:44AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of January 2024
PEARSON plc
(Exact
name of registrant as specified in its charter)
N/A
(Translation
of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address
of principal executive office)
Indicate
by check mark whether the Registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F
X
Form 40-F
Indicate
by check mark whether the Registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes
No X
Pearson 2023 Trading Update (Unaudited)
17th January
2024
|
Strong execution delivers financial performance in line with
upgraded guidance. Pearson well positioned for 2024 and
beyond
|
Highlights
●
|
Underlying Group sales growth1 of
5% for the full year, excluding OPM2 and
the Strategic Review3 businesses.
|
●
|
Group adjusted operating profit of c.£570-575m at £:$ of
1.25 for the full year, up more than 30% on an underlying basis
compared to 2022, resulting in a margin of c.15.5%.
|
●
|
Strong full year performance driven by Assessment &
Qualifications and English Language Learning.
|
●
|
Cost efficiency programme successfully delivered £120m of
savings.
|
●
|
We're encouraged by how students are engaging with our generative
AI study tools and will be expanding the current beta to many more
MyLab and Mastering titles by Fall semester 2024. Higher Education
platform units also delivered encouraging growth.
|
●
|
Pearson+ passed the milestone of 1 million cumulative paid
subscriptions for the calendar year.
|
Omar Abbosh, Pearson's Chief
Executive, said:
"I am excited to be leading this high quality, purpose-driven
company and I would like to thank Andy for the strong progress made
under his leadership.
Pearson saw strong strategic and operational progress in 2023
leading to financial performance ahead of our initial expectations.
The Group is well positioned to seize growth opportunities and
deliver long-term future value for all of our stakeholders. I look
forward to leading the next phase in Pearson's ongoing
evolution."
Underlying sales
growth1 of
5% for 2023, excluding OPM2 and
Strategic Review3 businesses;
1% in aggregate
●
|
Assessment
& Qualifications sales were up 7% for the full year largely
driven by a strong performance in Pearson VUE with good progress in
IT and healthcare alongside the commencement of new contracts. VUE
test volumes4 grew 6% to
20.7m. There was also good growth across US Student Assessments,
Clinical and UK & International Qualifications, due to new
contract wins, good government funding and price increases. As
anticipated, Q4 sales growth of 3% was slower than in prior
quarters due to contract phasing.
|
●
|
Virtual Learning sales decreased 20% for the full year, primarily
due to an 87% expected decrease in the OPM business given the
previously announced ASU contract loss. Virtual Schools sales
declined 2% for the full year, with enrolments for the 2023/24
academic year lower due to the previously announced loss of a
larger partner school. Excluding this impact, enrolments were up
1%. Virtual Schools sales grew 5% in Q4, primarily driven by
improvements in funding, as well as growth associated with the
launch of Connections Academy Career Pathways.
|
●
|
Higher
Education sales were down 3% for the full year, in line with
expectations, driven by loss of adoptions to non-mainstream
publishers in the first half of the year, as well as pricing mix.
We saw strong growth in Inclusive Access sales to not-for-profit
institutions, which were up 22% for the year, and delivered 2%
growth in platform units. We're encouraged by how students are
engaging with our generative AI study tools and will be expanding
the current beta to many more MyLab and Mastering titles by Fall
semester 2024. Q4 sales were flat. Pearson+ performed well with
3.03m registered users and 516k paid subscriptions, representing
27% growth compared to the prior year Fall semester. Pearson+
passed the milestone of 1 million cumulative paid subscriptions for
the calendar year.
|
●
|
English
Language Learning sales increased 30% for the full year with all
three segments contributing to this growth. Pearson Test of English
(PTE) was the outstanding contributor, delivering volume growth of
49% against a backdrop of favourable migration policy in Australia
and market share gains in India. Q4 sales grew 22% largely driven
by PTE and Institutional. We launched PTE for Canadian Student
Direct Stream visa applications in the second half of 2023 and
expect to begin delivering PTE for Canadian economic immigration
visa applications in the first quarter of 2024. We are continuing
to invest in building our brand awareness and testing capacity in
the competitive Canadian market.
|
●
|
Workforce
Skills sales grew 11% for the full year, with a solid performance
in both Vocational Qualifications and Workforce Solutions. Sales
grew 28% in Q4, driven by strong growth in BTECs, both in the UK
and internationally.
|
Share buyback
●
|
The
previously announced buyback to repurchase £300m of shares
continued, with £188m of shares repurchased as at
31st December
2023.
|
●
|
As at
15th January 2024
£206m of shares had been repurchased at an average price of
918p per share, representing 69% of the total
programme.
|
Strong financial position
●
|
Pearson's
financial position remains robust, with a strong balance sheet, net
debt of less than £0.8bn and a strong 2023 cash
performance.
|
Financial calendar
●
|
Full year results will be announced on 1st March
2024. We will hold a virtual presentation and Q&A session,
during which we will outline the 2024 outlook.
|
●
|
A business and strategic update will be provided at our Interim
results in July.
|
Financial
summary
Underlying growth
for the fourth quarter and financial year ended 31st December 2023
compared to the equivalent period in 2022.
|
Sales
|
Q4
|
Full Year
|
Assessment
& Qualifications
|
3%
|
7%
|
Virtual
Learning
|
(22)%
|
(20)%
|
Higher
Education
|
0%
|
(3)%
|
English
Language Learning
|
22%
|
30%
|
Workforce
Skills
|
28%
|
11%
|
Strategic
Review3
|
(125)%
|
(74)%
|
Total
|
0%
|
1%
|
Total, excluding OPM2 and
Strategic Review3
|
6%
|
5%
|
For an accompanying data sheet providing 2023 metrics relating to
sales across select key businesses as well as a breakdown of US
Higher Education Courseware college units and Pearson+ metrics,
please follow this
link.
1Throughout this announcement
growth rates are stated on an underlying basis unless otherwise
stated. Underlying growth rates exclude currency movements, and
portfolio changes.
2We have completed the sale of
the Pearson Online Learning Services (POLS) business and as such
have removed from underlying measures throughout. Within this
specific measure we exclude our entire OPM business (POLS and ASU)
to aid comparison to guidance.
3Strategic Review is sales in
international courseware local publishing businesses being wound
down, which will continue to be reported separately until
dissipated.
4VUE test volumes include GED
tests but sales for GED are reflected in the Workforce Skills
division. PDRI test volumes are not currently included in this
metric.
Contacts
Investor Relations
|
Jo
Russell
James
Caddy
|
+44
(0) 7785 451 266
+44
(0) 7825 948 218
|
|
Gemma
Terry
Brennan
Matthews
|
+44
(0) 7841 363 216
+1
(332) 238-8785
|
Media
Teneo
Pearson
|
Charles
Armitstead
Laura
Ewart
|
+44
(0) 7703 330 269
+44
(0) 7798 846 805
|
About
Pearson
At
Pearson, our purpose is simple: to add life to a lifetime of
learning. We believe that every learning opportunity is a chance
for a personal breakthrough. That's why our Pearson employees are
committed to creating vibrant and enriching learning experiences
designed for real-life impact. We are the world's leading learning
company, serving customers with digital content, assessments,
qualifications, and data. For us, learning isn't just what we do.
It's who we are. Visit us at pearsonplc.com
Notes
Forward looking statements: Except for the historical
information contained herein, the matters discussed in this
statement include forward-looking statements. In particular, all
statements that express forecasts, expectations and projections
with respect to future matters, including trends in results of
operations, margins, growth rates, overall market trends, the
impact of interest or exchange rates, the availability of
financing, anticipated cost savings and synergies and the execution
of Pearson's strategy, are forward-looking statements. By their
nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that will
occur in future. They are based on numerous assumptions regarding
Pearson's present and future business strategies and the
environment in which it will operate in the future. There are a
number of factors which could cause actual results and developments
to differ materially from those expressed or implied by these
forward-looking statements, including a number of factors outside
Pearson's control. These include international, national and local
conditions, as well as competition. They also include other risks
detailed from time to time in Pearson's publicly-filed documents
and you are advised to read, in particular, the risk factors set
out in Pearson's latest annual report and accounts, which can be
found on its website (www.pearsonplc.com). Any forward-looking
statements speak only as of the date they are made, and Pearson
gives no undertaking to update forward-looking statements to
reflect any changes in its expectations with regard thereto or any
changes to events, conditions or circumstances on which any such
statement is based. Readers are cautioned not to place undue
reliance on such forward-looking statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
PEARSON
plc
|
|
|
Date: 17
January 2024
|
|
|
By: /s/
NATALIE WHITE
|
|
|
|
------------------------------------
|
|
Natalie
White
|
|
Deputy
Company Secretary
|
Pearson (NYSE:PSO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pearson (NYSE:PSO)
Historical Stock Chart
From Jul 2023 to Jul 2024