Global education group Pearson, expects to post an 8% rise in 2022, adjusted operating profit after strong demand for assessment and qualification which helped it to enjoy a strong end to the year.
The British company reported 2021 profit of 385 million pounds ($516 million), and said it saw further revenue growth in 2022 and profit in line with current market expectations of 416 million pounds. It has been fighting to stabilise the business since its traditional textbook model got wiped out in 2015 by digital sales and second hand offers.
The company further added, “We expect the group to achieve mid-single digit revenue CAGR from 2022 to 2025 and for margins to remain relatively stable in the near term, as we invest to drive growth, improving by 2025 to mid-teens.”
Pearson has endured a turbulent pandemic, lifted by demand for online learning services, hit by canceled exams and stymied late last year when Omicron and a tight US labour market deterred students from enrolling at community colleges.
Under the leadership of former Disney executive Andy Bird it has broadened its approach beyond traditional education outlets, selling directly to consumers via its Pearson+ app and to businesses looking to train staff.
Pearson’s assessment and qualifications division posted 2021 underlying sales growth of 18%, with virtual learning up 11% and English language learning up 17% whereas its higher education division, often the source of profit warnings, posted underlying sales down 5%, with growth in Canadian and UK Courseware offset by a 6% decline in US Higher Education courseware. It said it expected the division’s revenue to decline in 2022 but by less than last year.
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