Educational publisher Pearson reveals dip in sales for past six months

The company said it delivered a “solid” performance over the first half of 2024 amid “operational progress” across the business.

Pearson held firm on its sales and profit guidance for the year as a result.

The group said it sees opportunities to improve growth by addressing pressure for skills driven by Baby Boomers quitting the workforce and leaving shortages.

It also said it would look to “increasingly powerful AI models” amid changing skills requirements in the world of work.

It came as Pearson revealed on Monday that sales slipped to £1.75bn for the half-year to June 30, from £1.88bn in the same period a year earlier.

The firm’s assessment and qualifications arm saw sales improve by 2 per cent for the half-year.

Meanwhile, it saw a 1 per cent drop in its virtual schools business driven by contract losses, while higher education sales were 2 per cent lower.

However, it benefited from an 11 per cent jump in English Language learning sales.

Pearson also revealed that adjusted operating profits grew by 4 per cent to £250m for the period.

Omar Abbosh, Pearson’s Chief Executive, said: “Since joining Pearson at the start of the year, I have led a comprehensive review of our business and the markets in which we operate.

"This process has only reinforced my conviction in the potential of Pearson and the vital role we play in helping people realise the life they imagine through learning.

"Significant demographic shifts and rapid advances in AI will be important drivers of growth in education and work over the coming years, and this plays to Pearson’s strengths as a trusted provider of learning and assessment services.

“We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency. “We’re also focusing on opportunities to progressively build our presence in materially larger and higher growth markets in which we are well positioned to succeed, with a particular focus on early careers and enterprise skilling.

“Our good strategic and financial performance in the first half of the year sets us up to achieve our guidance for the current year and for 2025, and we expect thereafter to continue to deliver attractive growth with progressive improvements in our margins alongside consistently strong cash generation.”