Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)
April 28 2023 - 11:13AM
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 April
2023
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 Q1 Trading Update (Unaudited)
28th April
2023
|
Pearson delivered another quarter of strong performance,
reinforcing business momentum and strategic progress
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Highlights
●
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Underlying sales growth excluding
OPM1 and
Strategic Review2 of
6%.
|
●
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Performance in each of Pearson's divisions in line with or ahead of
our expectations.
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●
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Strong progress executing our strategic priorities, including
further portfolio reshaping with the sale of OPM and completion of
PDRI acquisition.
|
●
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On track for delivery of £120m of cost efficiencies this
year.
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●
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Remain on track to achieve our 2023 guidance.
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●
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Intention to commence a buyback to repurchase £300m of shares
in the second half of 2023.
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Andy Bird, Pearson's Chief
Executive, said:
"Pearson has had a strong start to the year with results ahead of
our expectations. This ongoing momentum is testament to our
increasingly interconnected, consumer-focused, and innovative
approach alongside relentless commercial execution. We delivered
double-digit sales growth in our enterprise facing businesses,
reflecting our strategy to address the upskilling and reskilling
opportunity around the world. With our new talent investment
platform on track to be launched later this year, this progress
reinforces our belief that partnerships with enterprises will be a
strong driver of future growth. Our continuing outperformance and
the proven resilience of our business underpins our confidence of
delivering on our financial expectations for the full year and over
the medium term."
|
Underlying sales growth of 6%,
excluding OPM1 and
Strategic Review2;
2% in aggregate
●
|
Assessment & Qualifications sales grew 6% driven by strong
growth in Pearson VUE. This was due to the strength of Pearson VUE
volumes, particularly in the nursing and IT certification sectors.
Our extensive breadth of testing options, strong market position,
and high quality delivery of licensure and certification exams,
will continue to be a key driver of our performance going
forward.
|
●
|
Virtual Learning sales decreased 14%, driven by an expected 35%
decrease in OPM1.
Virtual Schools declined 2%, supported by good retention rates and
the return of a school that had previously left, offset by
enrolment declines for the 2022/23 academic year and lower district
partnership renewals.
|
●
|
English Language Learning sales increased 66%. As expected, the
strong growth is primarily due to an outstanding contribution
from Pearson Test of English due to an improvement in global
mobility versus the same period last year as well as increased
market share in India and a temporary increase in skilled visa
allocations in Australia. We also saw a strong performance in
our Institutional business.
|
●
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Workforce Skills sales grew 8%, driven by double-digit growth in
Workforce Solutions, and continued growth in Vocational
Qualifications. Sales are expected to build throughout the year,
supported by the launch of the talent investment platform later
this year.
|
●
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Higher Education sales were down 5%, as expected, including the
anticipated deferral of Pearson+ sales into Q2 this year due to a
revenue recognition shift.
|
●
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Sales in businesses under Strategic Review2 decreased
50% as expected.
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Strong execution across strategic initiatives
●
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Completed acquisition of PDRI, significantly expanding Pearson's
services to U.S. federal government. This acquisition unlocks
synergies between Pearson and PDRI, whilst also expanding Pearson
VUE's reach in a key strategic area.
|
●
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Agreement to dispose of OPM business, further focusing Pearson's
portfolio towards future growth opportunities.
|
●
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On track to deliver £120m of cost efficiencies in
2023.
|
●
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In February, Pearson's PTE language test received approval for
Canadian Economic Immigration.
|
●
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Pearson+ continues to show strong performance of paid subscriptions
this Spring semester, growing threefold versus Spring
2022.
|
●
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After the successful beta test of our Channels service in Pearson+,
we began a targeted pricing test in April. We now have 18 academic
channels and we recently introduced tech and soft skills classes,
further enhancing Pearson's focus on learning for
work.
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Strong financial position
●
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Pearson's financial position remains robust, with low net debt and
strong liquidity.
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Share buyback
●
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Intention to commence a buyback to repurchase £300m of shares
in the second half of 2023.
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Financial summary
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Underlying growth
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Sales
|
|
Assessment & Qualifications
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6%
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Virtual Learning1
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(14%)
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English Language Learning
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66%
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Workforce Skills
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8%
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Higher Education
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(5)%
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Strategic Review2
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(50)%
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Total
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2%
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Total, excluding OPM and Strategic Review
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6%
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Throughout this announcement growth rates are stated on an
underlying basis unless otherwise stated. Underlying growth rates
exclude currency movements and portfolio changes.
1.
We
have entered into an agreement to sell the OPM business. As is
usual practice, it will continue to be reported as part of Virtual
Learning until the sale has been completed.
2.
Strategic
Review is revenues in international courseware local publishing
businesses being wound down, which will continue to be reported
separately until dissipated.
Executive Appointments
●
|
Pearson today announced the appointment of Tony Prentice as Chief
Product Officer and Co-President of Direct to Consumer. Tony brings
to the role more than 25 years of experience in consumer-led
product management including at companies such as SEMA4, American
Express, GE, Starbucks and McKinsey.
|
This announcement contains inside information.
Contacts
Investor Relations
|
Jo Russell
James Caddy
Gemma Terry
Brennan Matthews
|
+44 (0) 7785 451 266
+44 (0) 7825 948 218
+44 (0) 7841 363 216
+1 (332) 238-8785
|
|
|
|
Teneo
|
Charles Armitstead
|
+44 (0) 7703 330 269
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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.
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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.
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PEARSON
plc
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|
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Date: 28
April 2023
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|
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By: /s/
NATALIE WHITE
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|
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------------------------------------
|
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Natalie
White
|
|
Deputy
Company Secretary
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