I'm not sure if there is much interest for these on here - but I've been following them this year. They have had a rapid climb recently - is it time to take profits?

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Pearson Fundamentals (PSON)

Pearson target price raised to 940p from 840p at UBS, buy rating maintained

INTERVIEW: Pearson Focused On Growing International Education - CFO

Trading Statement

Pearson to beat consensus with 10% EPS growth

Pearson, Nokia Form Wireless Educational Venture In China


LONDON (Dow Jones)
Publisher Pearson PLC (PSON.LN) and Nokia Corp. (NOK), the world's biggest mobile phone maker, said Monday they have set up a wireless education joint venture in China, aimed at attracting people who are studying and learning English.

The two companies hope the joint venture, Beijing Mobiledu Technologies, will accelerate the growth of mobile phone-delivered education service Mobiledu, which has been developed by Finland's Nokia.

Launched in China in 2007, Mobiledu is a mobile service which provides English-language learning materials and other educational content, from a variety of content providers, directly to mobile phones. Customers can access the content through an application preloaded on new Nokia handsets, or by visiting the service's mobile Web site and most other wireless application protocol, or WAP, portals in China.

Since its launch, Mobiledu has attracted 20 million subscribers in China, with 1.5 million people actively using the service each month. Mobiledu will continue to be delivered to customers in China through a range of channels, including Nokia's Ovi Store.

The new Beijing-based joint venture company will be headed by Angela Long, formerly head of Mobiledu at Nokia, and will commence operations immediately.

John Fallon, chief executive of Pearson's international Education business, said it is a "great opportunity to combine Pearson's English language learning and wider educational services with the mobile technology capabilities of Nokia to meet this demand and help a larger number of people achieve their aspirations."

Pearson Buys Medley Global Advisors

LONDON (Dow Jones)
Pearson PLC (PSON.LN), an education and information company, announced Wednesday the acquisition of Medley Global Advisors LLC (MGA), a premier provider of macro policy intelligence to the world's top investment banks, hedge funds and asset managers.

MAIN FACTS:

-No financial details disclosed

-MGA had estimated gross assets of $7.3 million at the year end.

-The acquisition strengthens the FT's position as a global leader in premium financial information.

-Medley Global Advisors provides in-depth research and analysis through email and verbal consultations to help clients understand and anticipate the major policy events driving interest rate, currency and energy markets.

-The acquisition will enhance the FT's portfolio of services geared towards major global financial institutions and asset managers, including FTfm, its global fund management supplement, and Money-Media, the market leader in online news and commentary for the fund management sector.

Final results.

Sales up 4% at constant exchange rates to 5.6bn; adjusted operating profit up 4% to 858m; underlying sales and profit growth of 2%*;

Headline growth of 13% in adjusted EPS to 65.4p and 15% in operating cash flow to 913m, benefiting from business performance and stronger US dollar;

Education sales up 7% and profits up 14% with significant market share gains, extending leading position in global learning market;

FT Group and Penguin achieve good competitive performances and healthy margins in tough markets;

Digital products and services generate a record 1.7bn of sales, now 31% of Pearson;

Sustained investment of approximately 500m in new education programmes and authors advances;

Dividend raised 5%; another year of underlying profit growth expected in 2010.

Annual Financial Report

Trading Statement.

All parts of the company have made a good start to 2010. We are trading in line with the expectations set out in our full-year results announcement on March 1, and we continue to expect another year of underlying profit growth.

We generated 1.08bn in revenues in the first quarter, an increase of 7% in headline terms and 12% at constant currencies. The first quarter is always a very light trading period for Pearson owing to the seasonal phasing of our book publishing businesses, and we expect these growth rates to moderate as we go through the year.

Pearson to sell 61% Stake in Interactive Data for $33.86 per share:
total proceeds to Pearson of $2billion

Interactive Data Corporation, a leading provider of financial market data, analytics and solutions, is today announcing that it has entered into a definitive agreement to be acquired by investment funds managed by Silver Lake and Warburg Pincus in a transaction with a total value of $3.4 billion. Pearson, which owns approximately 61% of Interactive Data, has executed a written consent providing approval as a shareholder for the transaction.

The agreement was unanimously approved by the Interactive Data board of directors taking into consideration the recommendation of the Special Committee composed solely of the company's four independent directors. The Special Committee was formed as part of the review of strategic alternatives conducted by Interactive Data's board of directors.

Melorio agrees 99m Pearson offer
Business Financial Newswire
Melorio plc, the AIM-listed vocational training company, have agreed terms of a recommended cash offer from education and information giant, Pearson plc.

The offer will be 225p in cash for each Melorio share and values the company at approximately 99.3m.

The offer price represents a premium of 31.2% to the closing price of 171.5p per Melorio share and 56.9% to the average closing price over the three months to 17 May, 2010.

Pearson believes that the addition of Melorio will support their strategy of building a strong position in the growing global market for vocational learning.

The directors of Melorio intend to unaninmously recommend that shareholders accept the offer.

Interim Results.

STRONG GROWTH IN ALL BUSINESSES; FULL YEAR OUTLOOK UPGRADED

Strong organic growth. Sales up 9% at constant exchange rates with rapid growth in digital services.

All businesses performing well.First-half operating profits doubled at Education, the FT Group and Penguin with good underlying progress also helped by phasing. Adjusted continuing operating profits up 79% to 178m; adjusted EPS of 16.6p (7.9p in 2009).

Interim dividend raised by 7% to 13.0p.

Shift to services and developing economies accelerating. Sale of stake in Interactive Data expected to close in the next few weeks. Process of reinvestment under way with acquisitions of Melorio in vocational training and SEB's sistemas in Brazil.

Full year outlook upgraded. Market conditions remain uncertain and growth is still expected to slow in the second half on tougher comparables. Even so, Pearson expects to achieve adjusted earnings of approximately 70p per share for the full year (65.4p in 2009), even after earnings impact from sale of Interactive Data.

Pearson To Establish New School Services Business In UK

Today : Monday 26 July 2010
Publisher Pearson PLC (PSON.LN) said Monday it will set up a new business to offer services to U.K. schools, after reporting strong first-half results.

Pearson said the new business will offer services to help schools with teaching, planning and administration.

"Historically, we've offered resources and services that support individual teachers but are increasingly being asked for whole school solutions," Rod Bristow, president of Pearson's U.K. operations, said in a statement. "This might include not only helping with the administration, accounting and school management, but also providing an entire framework for school operations."

The business will be run by Anders Hultin, who will join in September as managing director of school improvement. He co-founded the Kunskapsskolan chain of independent schools in Sweden and was its chief executive from 1999 to 2007.

Further details about the business will be released when Hultin joins the group, a Pearson spokesman said.

Pearson, which also publishes the Financial Times newspaper and Penguin books, earlier Monday posted a sharp jump in adjusted operating profit from continuing operations--one of the figures tracked by U.K. analysts--to GBP178 million for the six months ended June 30.

Pearson to acquire Wall Street Institute

TIDMPSON

RNS Number : 1327Q
Pearson PLC
29 July 2010

Pearson to acquire Wall Street Institute:
Acquisition extends Pearson's position as world leader in English language
teaching

Pearson, the education and information company, is today announcing the
acquisition of Wall Street Institute from an affiliate of the The Carlyle Group
and Citi Private Equity for $92m in cash.

Wall Street Institute (WSI) provides premium spoken English training for adults
through a proprietary learning model combining web-based content, class-based
instruction and digital and printed learning materials.

WSI currently has approximately 340 franchised learning centres in 25
territories across Asia, Europe, the Middle East and Latin America. Its major
markets currently include France, Italy, Turkey, Chile, Venezuela, Colombia,
Hong Kong, Korea and Taiwan. WSI supports its franchisees through an
international management infrastructure made up of approximately 50 employees
across the Americas and Europe. WSI also directly operates a small number of
learning centres, primarily in Germany, as flagship centres for testing new
products and sharing best practice across the franchise network.

WSI earned revenues of approximately $60m in 2009. Pearson expects the
acquisition to be earnings neutral in 2011 as it invests to expand the business
in high growth markets, and to enhance adjusted EPS and generate a return above
Pearson's cost of capital from 2012.

PEARSON COMPLETES SALE OF 61% STAKE IN INTERACTIVE DATA

Pearson, the education and information company, has completed the sale of its
61% stake in Interactive Data to investment funds managed by Silver Lake and
Warburg Pincus. The terms of the transaction are in line with the agreement
announced on 4 May 2010.

Interactive Data shareholders will receive $33.86 in cash for each share of
Interactive Data stock they own. The total cash consideration to Pearson is
approximately $2bn before tax.

Rona Fairhead, chief executive of the Financial Times Group, said:
"Interactive Data has been a valued part of the FT Group and Pearson for many
years and has become a world leader in its field. That's the result of the
dedication and talent of its remarkable group of people, and we wish them every
success with their new owners."

PEARSON ACQUIRES THE ADMINISTRATIVE ASSISTANTS LTD.; EXTENDS LEADERSHIP IN STUDENT INFORMATION SYSTEMS

Pearson, the world's leading learning company, today announced the acquisition of The Administrative Assistants Ltd. (aal), a provider of student information systems in the worldwide K-12 school market.

Student information systems provide administrators, parents, teachers and students with information on grades, homework, attendance, reporting and other elements vital to school performance and personalised learning.

Pearson is the leader in the SIS market, providing support to about 11 million students through the PowerSchool and Chancery SMS systems, and the acquisition of aal expands Pearson's SIS reach to more than 15 million students globally.

Based in Burlington, Ontario, aal provides the Web-based system known as eSIS which has been implemented in locations ranging from North Carolina in the U.S. to Abu Dhabi in the Gulf, and aal's products will provide increased international market opportunities for Pearson in the K-12 market. Gross assets of aal are C$13m and 2010 revenues for the year ending September 30 were C$14m.

Trading Statement.

PEARSON TRADING STATEMENT


RAISING GUIDANCE FOR 2010;

ADJUSTED EARNINGS PER SHARE EXPECTED TO GROW APPROXIMATELY 16%;

2011 EXPECTED TO BE ANOTHER GOOD YEAR

Pearson, the world's leading learning company, is today providing its regular January trading update. We will report preliminary results for 2010 on 28 February 2011.

All of Pearson's major businesses sustained their strong trading momentum throughout 2010. We will report healthy sales growth and further margin improvement, fuelled by our consistent investment in the global learning industry, in digital services and in developing economies.

As a result, we now expect to report continuing operating profits for 2010 of approximately 850m, a headline increase of approximately 20% (compared with 710m in 2009, excluding Interactive Data, which was sold in July 2010, from both years). We expect to report adjusted earnings of approximately 76p per share, an increase of approximately 16% on 65.4p in 2009, and ahead of our previous guidance of approximately 72p.

Marjorie Scardino, chief executive, said: "For the third successive year, our growth is vigorous even though market conditions have been anaemic. That confirms the soundness of our strategy and the increasing strength of our market positions. We are on the right road and set out on 2011 with confidence that we will have another good year."

Our North American education business continues to achieve market share gains and significant growth in digital learning and will report good sales growth and margin improvement. We have benefited once again from healthy demand and our consistent industry-leading performance in higher education, though the continued pressure on state budgets has constrained our school publishing and testing businesses.

In International education, we posted a strong fourth quarter. Developing markets, digital learning, assessment and English Language Teaching were all strong, while developed markets and school publishing remained subdued. We are successfully integrating recent bolt-on acquisitions in China, Brazil, South Africa and Nigeria. On 18 January 2011, we announced that we had taken a controlling stake in TutorVista, expanding our presence into global online tutoring and the school market in India.

Our professional education business remained steady in the fourth quarter, with good growth in Professional Testing and digital publishing once again offsetting challenging conditions in the physical book market. On 11 January 2011, we announced a 12-year extension of our relationship with the Graduate Management Admission Council to administer the Graduate Management Admission Test.

The Financial Times Group finished the year strongly and we will report substantial profit growth (excluding Interactive Data which was sold in July 2010). Advertising markets continued to improve and our subscription-based revenues remained resilient.

Penguin continues to benefit from its leadership in the rapidly-expanding market for digital reading and has posted a very good competitive performance. We performed strongly in our key trading season and will report record results despite tough conditions in the physical book retail market.

For the full year, we continue to expect our total interest charge to adjusted earnings to be approximately 90m. We now expect our effective tax rate to be around the low end of our previous guidance of 25-27%.


ENDS

Market outlook: HSBC, Pearson, ITV, GKN

http://www.whatinvestment.co.uk/trading/markets/news/1605403/market-outlook-hsbc-pearson-itv-gkn.thtml

Pearson plc said it has told the Libyan Investment Authority that its shares in the company are frozen. The group announced last June that the LIA had acquired 24.4m shares and on further investigation believed it had acquired an additional 2.1m, taking its stake to 3.27%. Having taken legal advice regarding its obligations, Pearson considered the shares were subject to UN and UK sanctions and therefore effectively frozen. Pearson will not register any transfer or pay any dividend in respect of the shares until further notice.

Pearson acquisition cleared by OFT

The Office of Fair Trading has decided not to refer the proposed acquisition by Pearson of Education Development International to the Competition Commission.

Interim Results.

PEARSON 2011 INTERIM RESULTS (unaudited)



Pearson sales up 6% to 2.4bn and profits up 20% to 208m*

Education sales up 9% and profits up 31%:

o Good sales growth in International (up 26%) and Professional (up 35%).

o In North America, sales 3% lower with tough first-half comparables; full-year growth expected with easing H2 comparables and further market share gains.

FT Group sales up 7% and profits up 10%, enhanced by digital subscriptions.

Penguin sales 4% lower (underlying sales level); profits sustained with rapid digital growth.



Strong growth in digital, developing markets and newly-acquired businesses

Education digital platform and service registrations up 15%; FT.com subscriptions up more than 30%; Penguin ebook revenues up almost 130%.

Sales up approximately 40% in developing markets (headline growth).

Strong growth from recent acquisitions including Wall Street Institute, SEB (Brazil), TutorVista, CTI (South Africa) and Melorio (now known as Pearson in Practice).



Full year outlook upgraded

Pearson expects sales and margin growth for the full year, based on good trading momentum - especially in digital businesses and developing markets - and easing comparatives.

Pearson expects to achieve adjusted EPS of approximately 80p for the full year (2010: 77.5p). This guidance is struck at current exchange rates (1: $1.63).



Interim dividend raised by 8% to 14.0p.



Marjorie Scardino, chief executive, said: "Though market conditions are anything but easy, we are sufficiently encouraged by our start to the year to raise both our guidance and our dividend. Structural changes in our industries are gathering pace, but we are confident that we have the strategy, the competitive positions, the investment capacity and the culture to sustain our strong record of performance."

Interim Management Statement.

PEARSON NINE-MONTH INTERIM MANAGEMENT STATEMENT

Sales up 6% and operating profit up 13%*

All businesses trading as expected

Adjusted EPS now expected to be approximately 83p per share, benefiting from lower interest and tax

PEARSON TO ACQUIRE GLOBAL EDUCATION IN CHINA FOR $155M

Pearson, the world's leading learning company, is today announcing that it has agreed to acquire Global Education and Technology Group, a leading provider of test preparation services for students in China who are learning English.

Global Education is listed on the NASDAQ stock exchange (NASDAQ: GEDU). Pearson has agreed to acquire the company for $155m in cash, comprised of a headline price of $294m or $11.006 per American Depository Share offset by an expected cash balance of $139m at closing. The acquisition is subject to the approval of Global Education's shareholders and is expected to complete in the fourth quarter of 2011.

Global Education is a leading provider of test preparation services in China for students who are working towards internationally-recognised English language assessments. These tests are important to students who want to study outside China; to professionals who want to demonstrate their English skills to Chinese or international companies; and to academic institutions, corporations and governments as they evaluate admissions, employment and immigration applications. Pearson estimates that approximately 500,000 Chinese students take these tests each year, a four-fold increase over the past five years which has produced rapid growth in spending on related teaching and preparation services.

Pearson sells FTSE



Publishing group Pearson today announced that it has agreed to sell its 50% stake in FTSE International Limited to the London Stock Exchange Group for GBP450m in cash.

FTSE is a world-leader in the creation and management of more than 200,000 equity, bond and alternative asset class indices. With offices in London, Frankfurt, Hong Kong, Beijing, Shanghai, Madrid, Milan, Mumbai, Paris, New York, San Francisco, Sydney and Tokyo, FTSE works with partners and clients in 80 countries worldwide.

Pearson and London Stock Exchange Group currently each own 50% of FTSE. Under the terms of the agreement, London Stock Exchange Group will acquire from Pearson the 50% of FTSE that it does not own and continue to use the FTSE name. The transaction is expected to close by the first quarter of 2012.

In 2010, FTSE reported total revenues of GBP98.5m and total EBITDA of GBP40m. At 31st December 2010, FTSE had gross assets of GBP100.8m.

Pearson expects FTSE to make a total post-tax contribution to Pearson's adjusted earnings of approximately GBP£18m or 2.2p per share in 2011.

The transaction follows the sale of Pearson's stake in Interactive Data last year for $2bn. It marks Pearson's exit from companies that are primarily providers of financial data and strengthens the FT Group's focus on global business news, analysis and intelligence, increasingly delivered through subscription models and digital channels.

Pearson said it intends to use the proceeds of the sale to support and accelerate its strategy, investing in its businesses both organically and through acquisitions of companies with complementary content, technology and geographic exposure. In recent years Pearson's organic investments have enabled it to gain share in many of its markets. The company has also made a series of bolt-on acquisitions (including vocational training companies in the UK, global business intelligence through Mergermarket, universities in South Africa, online learning businesses in North America, language schools in China and school systems in Brazil) which have rapidly enhanced Pearson's earnings and return on invested capital.

Marjorie Scardino, Pearson's CEO, said: 'FTSE is a bellwether of global financial markets and a world-class business. We have enjoyed supporting the company's excellent and highly professional team to build the business. Proud as we are of that long association, FTSE's strategy is different from our own. We wish it every success as we continue to build our digital business information services around the Financial Times.

'For Pearson, the transaction further strengthens our financial position at a time of significant macroeconomic turbulence. We are freeing up capital for continued investment in a proven strategy: becoming more digital, more international and more service-oriented in education, business information and consumer publishing.'

Questor share tip: education provides the answer for investors in Pearson

Telegraph staff, 7:16, Tuesday 13 December 2011

Pearson (EUREX: PSOF.EX - news) 's sale of its 50pc stake in indices provider FTSE International for 450m appears to be a good deal.

Pearson 11.28 -16p Questor says HOLD

"The valuation of FTSE International is quite significantly above our expectations," said Thomas Singlehurst, an analyst at Citigroup (NYSE: C - news) .

Indeed, the transaction implies that the London Stock Exchange (LSE: LSE.L - news) (LSE) is paying 22.5 times earnings before interest, taxes, depreciation, and amortisation (ebitda) to take full control of FTSE International. "Nobody thought it (FTSE International) made that much money or that it would command that sort of multiple," said Mark Braley, an analyst at Deutsche Bank (Xetra: 514000 - news) .

But is Pearson's new-found deal-making prowess a good reason to own the shares?

Financially, the transaction will initially be dilutive to earnings per share, according to Citigroup. However, the broker believes "dilution is only half of the story" because the company now has an 800m war chest to use on future acquisitions, which may be significantly accretive to earnings.

Still, the deal raises questions about Dame Marjorie Scardino's strategy for the rest of the company's financial information businesses, such as the Financial Times , and how they fit in the education publishing giant.

Pearson said the FTSE International sale "marks Pearson's exit from companies that are primarily providers of financial data and strengthens the FT Group's focus on global business news, analysis and intelligence, increasingly delivered through subscription models and digital channels."

However, that line of argument appears somewhat muddled given that some of the FT Group's divisions rely on generating subscriptions by providing financial data combined with news to the financial services industry.

Other potential areas of concern include The Daily Telegraph's exposof exam standards and education business practices in the UK. Broker Panmure Gordon noted that one of the exam boards under scrutiny is Edexcel, which is wholly-owned by Pearson.

Alex DeGroote, an analyst at the broker, said: "It remains to be seen what the outcome of the investigation is, but Ofqual the UK regulator could in theory disqualify a failing exam board."

Edexcel, though, only comprises around 5pc of Pearson group profit, according to Panmure Gordon, and Mr DeGroote concluded that in this context, the fallout from this investigation is unlikely to be "material" to forecasts.

Given that education accounts for around 80pc of Pearson's operating profits, investors really need to base their investment decisions and keep an eye on what is happening in this market, especially in the US as the country provides a large amount of Pearson's revenues and profits.

However, fears about cutbacks in US state spending on education have been lingering for the last four years and analysts do not believe there is any particular catalyst in the near future to trigger significant reduction on educational spending.

On that note, investors should hold on to their shares given they currently trade on a 3.6pc dividend yield and are a relatively low-risk investment.

15 Dec Goldman Sachs Buy Old TP 1,267.00 New TP 1,345.00 Upgrades

Thursday 19 Jan

Pearson (EUREX: PSOF.EX - news) 's update will shine a light on Penguin (SES: E2:P13.SI - news) 's performance in the run up to Christmas, and on whether the crucial festive sales period was sufficient to lift the year-on-year decline in sales seen in

the first nine months of the year.

Investors will be keeping a sharp eye on revenues at the North American education business, which has been hit by cuts in public spending and a slowdown in college enrolments. On a more positive note, however, Pearson's professional and international education units are expected to continue their strong performances, bolstering confidence in the company's ongoing expansion into emerging markets.

Press Release
19 January 2012

PEARSON TRADING UPDATE

Strong competitive performance in tough markets;

2011 adjusted EPS growth of approximately 10%

Pearson, the world's leading learning company, is today providing its regular January trading update. We will report preliminary results for 2011 on 27 February 2012.

In the context of significant structural industry change and generally weak market conditions, Pearson performed well competitively through the important year-end selling season. We continue to benefit from rapid growth in digital services, our expanding position in developing economies and the continuing transformation of our business portfolio. For the year as a whole, Pearson generated approximately GBP2bn ($3bn) of digital revenues and approximately GBP600m ($1bn) of revenues in emerging markets. We now expect to report 2011 adjusted earnings per share growth of approximately 10% (compared to 77.5p per share reported in 2010), ahead of our previous guidance of approximately 83p per share.

In North American education we have continued to gain market share and grow rapidly in digital learning. These strengths, together with a resilient performance from our education technology and services businesses, have enabled us to offset weak market conditions in the school and higher education publishing industries. In International education, we continued to Perform well in developing markets, digital learning, assessment and English Language Teaching, while macroeconomic pressure in developed markets resulted in school publishing remaining generally subdued. Our professional education business grew in the fourth quarter, with good growth in Professional Testing and digital publishing.

At the Financial Times Group, we expect to report good growth despite weak and volatile advertising market conditions. Our digital and subscription-based revenues at both the FT and Mergermarket continued to climb.

Penguin's publishing performance was strong in our key trading season and we will report solid results despite rapid industry change and tough conditions in the physical book retail market. Penguin continues to benefit from its Innovation and scale in the fast-growing digital books market.

Across Pearson, we are benefiting from recent portfolio changes, using the proceeds from disposals to invest in fast-growing businesses in developing economies and digital services. The 2011 results will show a good contribution from new bolt-on acquisitions even after expensed integration costs. Late in 2011, we completed the acquisitions of Connections Education in the US and Global Education in China, and we will therefore expense further integration costs in our education business in 2012. We also completed the sale of our 50% stake in FTSE International Limited for GBP450m in December 2011, providing additional headroom for further bolt-on acquisitions.

For the full year, we expect our total interest charge to adjusted earnings to be approximately GBP55m and our effective tax rate to be around the low end of our guidance of 22-24%. As previously stated, our interest and tax charges both contain one-off benefits in 2011.

Pearson generates approximately 60% of its sales in the US. The average GBP:$ exchange rate during 2011 was 1.60. The year end GBP:$ exchange rate was 1.55. A five cent move in the average GBP:$ exchange rate for the full year has an impact of approximately 1.3p on adjusted earnings per share.

ENDS

Well I didn't think the statement was that bad - but I guess its had another healthy run of late.

A balanced view :-)

JP Morgan Cazenove reiterates Overweight TP 1,425.00

UBS reiterates Buy TP 1,450.00

Credit Suisse reiterates Outperform TP 1,210.00

Exane BNP Paribas reiterates Neutral TP 1,200.00

Nomura reiterates Reduce TP 1 ,200.00

Final Results.

PEARSON 2011 PRELIMINARY RESULTS (UNAUDITED)

Financial performance
· Sales up 6% at CER in spite of tough trading conditions in many markets.
· Adjusted operating profit up 12% to £942m with growth in all businesses.
· Adjusted EPS up 12% to 86.5p (headline growth).
· Cash conversion remains strong at 104%; operating cash flow of £983m (£1,057m in 2010, which benefited from an unusually high working capital contribution).
· Return on invested capital of 9.1%, above Pearson's cost of capital; ROIC lower than in 2010 largely due to significant acquisition spend and higher cash tax.

Growth markets
· Digital revenues up 18% in headline terms to £2bn, now 33% of Pearson's sales. Substantial digital growth in all parts of Pearson including:
o Students using our digital learning programmes up 23% to 43m.
o Penguin eBook revenues up 106%; now 12% of total Penguin revenues.
o FT digital subscriptions up 29% to 267,000; approximately 44% of total paid circulation.

· Developing markets revenues up 24% in headline terms to $1bn ($834m in 2010), now 11% of Pearson's sales.

Efficiency
· Operating margins reach 16.1% (up 1.0% points)
· Average working capital: sales ratio improved to 16.9% (20.1% in 2010).

Investment
· Sustained organic investment of approximately £500m in new products and technologies.
· £896m invested in acquisitions including Schoolnet and Connections Education in North America and Global Education in China.
· Strong balance sheet (net debt of £499m) and approximately £1bn of headroom available for bolt-on acquisitions.

Dividend
· Dividend raised 9% to 42.0p, representing Pearson's 20th consecutive dividend increase.

Outlook
· Pearson expects to achieve continued sales and operating profit growth in 2012, in spite of tough trading conditions and rapid industry change.
· Revenues from digital and services businesses expected to exceed revenues from traditional publishing businesses in 2012.


Marjorie Scardino, chief executive, said: "The external environment provides a testing backdrop for these results, and all our industries face some degree of turbulence. But our strategy and long-term planning for change have helped us to another good year to add to our record of persistent out-performance. We believe those qualities, combined with the commitment and innovation of our people, will continue to serve our customers and our shareholders well."

Monday night's Panorama not helping here.

27 April 2012

AGM AND INTERIM MANAGEMENT STATEMENT

Pearson, the world's leading learning company, is today holding its Annual General Meeting and providing an interim management statement for the first three months of 2012.

Pearson is trading in line with the expectations set out in our full-year results announcement on 27 February. In the first three months of the year, we increased sales by 11% at constant exchange rates to GBP1.16bn (an underlying increase of 3% and a headline increase of 12%). Though the external environment remains challenging and we are yet to see signs of improvement, we continue to expect Pearson to achieve growth in sales and operating profits for the year as a whole. This guidance is struck at an exchange rate of GBP1:$1.59. Pearson's profits are heavily weighted to the second half and, as a result of the phasing of revenues, organic investment and restructuring, and the sale of our stake in FTSE International, we expect our first-half operating profits to be lower this year than in 2011.

In education, we have made a good start to the year. Though the US education market remains generally weak, we continue to benefit from our strong position and the rapid growth in our digital and services businesses. International Education is growing well, particularly in developing markets and helped by recent acquisitions and sustained organic investment. Our professional testing and publishing businesses continue to perform well but our UK training business has been adversely affected, as expected, by change in government funding policy related to apprenticeships. We are planning on the basis that trading remains weak in this business and we are taking appropriate steps to change our services and our business model.

Despite the tough environment for corporate advertising and deal-making, the Financial Times and Mergermarket are showing good sales growth. The FT's paid print and digital circulation was 605,000 in the first quarter of 2012, including 285,000 digital subscribers, and the FT is taking further actions in the first half to accelerate its shift from print to digital formats and from advertising to subscription revenues. The FT Group's profits in 2012 will also reflect the sale of our 50% stake in FTSE International in December 2011.

Following several years of particularly strong performance relative to the overall consumer books market, we expect Penguin to perform in line with its industry this year. It will benefit from its consistently strong publishing schedule, which is more concentrated in the second half this year, and its strong position in the fast-growing market for digital books. The industry continues to face significant structural change and, as one example, we intend to mount a robust defence of our actions in the civil proceedings recently announced by the US Department of Justice against Apple and several consumer book publishers including Penguin.

At the end of 2011, Pearson's net debt was GBP499m, giving a net debt/ EBITDA ratio of 0.5x and interest cover of 18.1x. Our net debt increased during the first quarter by GBP206m to GBP705m, level with the first quarter of 2011, as a result of the normal seasonal build-up of working capital ahead of our key selling periods in education and acquisition spend. That strong balance sheet gives us headroom of approximately GBP1bn available to invest in bolt-on acquisitions.

At our AGM today, we are proposing a final dividend of 28.0p, giving a total dividend for 2011 of 42.0p, up 9%. For the 20th consecutive year, Pearson has declared a dividend increase above the rate of inflation.

Pearson generates approximately 60% of its sales in the US. A five cent move in the average GBP:$ exchange rate for the full year (which in 2011 was GBP1:$1.60) has an impact of approximately 1.3p on adjusted earnings per share.

Pearson's AGM takes place today at the Institute of Engineering and Technology, 2 Savoy Place, London WC2R 0BL at 12 noon.

ENDS

Publishing group Pearson was a heavy faller on Monday, extending its losses following its first-half results on Friday. Sentiment has been dampened today after Nomura reiterated its 'reduce' rating on the stock, saying that shares are 'richly priced'. The broker noted in a research report that group organic growth was just 0.6% in the first six months of the year, "unfeasibly low" given that the shares are trading at 14.4 times earnings. The broker has maintained its 1,200p target price on the stock

Publisher Pearson launches UK degree course

Pearson, the major international publisher and education firm, is to become a for-profit private higher education provider in the UK.

The firm is opening Pearson College, teaching a degree course validated by existing London universities.

The business and enterprise degree, taught in London and Manchester, will have about 40 places this year.

The college says it will be for "students who are serious about succeeding in business".

Exane BNP Paribas Upgrades Outperform TP increased from 1,200 to 1,450p.

Pearson CEO Scardino to step down after 16 years

LONDON | Wed Oct 3, 2012 7:47am BST

(Reuters) - Pearson Chief Executive Marjorie Scardino is to step down after 16 years in the job in which she transformed the group from a diverse set of assets into an educational and media powerhouse.

Analysts said the departure of the 65-year-old had come sooner than expected and could lead to further change at the firm, including the possible sale of the Financial Times group which could result in a return of cash to shareholders.

Scardino, who will step down at the end of the year, will be replaced by John Fallon, the chief executive of Pearson's international education division since 2008 and a former head of the group in Europe, Middle East and Africa.

Sale of Non-core Subsidiary

AEC is pleased to announce that it has agreed the sale of its non-core examinations subsidiary, Educational Resources Pte Ltd ("ER"), which provides London Chamber of Commerce & Industry examinations in Asia, to Pearson Education South Asia Pte. Ltd ("Pearson") for a total consideration of £2.5 million cash upon completion and a deferred payment of an amount equal to the net consideration received by Pearson Education Limited (a company owned and controlled by Pearson plc) for the sale of 3,000,000 shares it holds in AEC. The sale is expected to complete before the end of October*.

The sale is in line with the Board's view expressed in the Company's 2011 Annual Report & Accounts that the Group's examination activity was becoming less of a strategic focus as its college activities grow.

For the financial year ended 31 December 2011, ER contributed revenues of S$3.92 million (equivalent to approximately £2 million), representing 10.5% of overall Group revenues. EBITDA was S$205,651 (equivalent to approximately £0.10 million) and its total assets as at 31 December 2011 amounted to S$6.54 million (equivalent to approximately £3.27 million).

The sale proceeds will be used by AEC to expand its core businesses.

AEC Education plc

("AEC" or the "Company" and together with its subsidiaries the "Group")

Completion of Sale of Non-core Subsidiary

Further to the announcement made by AEC on 4 October 2012, AEC is pleased to announce that all of the conditions relating to the agreed sale of Educational Resources Pte Ltd ("ER") to Pearson Education South Asia Pte. Ltd ("Pearson") (the "Sale") have been satisfied and that the Sale has now completed.

As previously reported, the sale of ER, the Group's examinations subsidiary, is in line with the Board's view that the examinations activity was becoming less of a strategic focus as its college activities grow. The sale proceeds (£2.5 million cash on completion and a deferred payment of an amount equal to the net consideration received by Pearson for the sale of 3,000,000 shares it holds in AEC) will be used by AEC to expand its core business.

Penguin and Random House owners in merger talks

Publisher Pearson has said it is holding talks with German media group Bertelsmann about combining their Penguin and Random House businesses.

Pearson, which owns Penguin and the Financial Times, said there was no guarantee a deal would be reached.

Re Joint Venture

Press release

29 October 2012


PEARSON AND BERTELSMANN AGREE CONSUMER PUBLISHING PARTNERSHIP:
PENGUIN AND RANDOM HOUSE TO COMBINE,
CREATING THE WORLD'S LEADING TRADE PUBLISHER

Pearson and Bertelsmann today announce an agreement to create the world's leading consumer publishing organisation by combining Penguin and Random House.

The combination brings together two of the world's leading English language publishers, with highly complementary skills and strengths. Random House is the leading English language publisher in the US and the UK, while Penguin is the world's most famous publishing brand and has a strong presence in fast-growing developing markets. Both companies have a long history of publishing excellence, and both have been pioneers in the dramatic industry transformation towards digital publishing and bookselling.

Under the terms of the agreement, Penguin and Random House will combine their businesses in a newly-created joint venture named Penguin Random House.

Bertelsmann will own 53% of the joint venture and Pearson will own 47%. The joint venture will exclude Bertelsmann's trade publishing business in Germany and Pearson will retain rights to use the Penguin brand in education markets worldwide.

Interim Management Statement

PEARSON NINE-MONTH INTERIM MANAGEMENT STATEMENT

· Sales are up 5% and operating profit down 5%*.

· In spite of tough market conditions, Pearson reiterates its full year outlook of growth in sales and operating profits with margins reflecting acquisition integration costs and the FTSE sale.

· Pearson and Bertelsmann agree to combine Penguin and Random House, creating the world's leading trade publisher.

Trading Statement

Pearson, the world's leading learning company, is today providing its regular January trading update. We will report preliminary results for 2012 on 25 February 2013.

In general, Pearson's businesses continue to face tough market conditions and structural industry change which we see continuing into 2013. The company continues to gain share in key markets and to benefit from its investments in digital services and developing economies.

Market conditions remained weak, as expected, in the key fourth-quarter selling season for higher education, consumer publishing and corporate advertising. For 2012 as a whole we expect to report good revenue growth at constant exchange rates, operating profit of approximately £935m (broadly level at CER), adjusted earnings of approximately 84p per share and cash conversion of close to 90%. The 2012 results will reflect the absence of a profit contribution from FTSE International (£20m of operating profit and 2.2p of EPS in 2011) and the impact of the radically-changed trading environment for Pearson in Practice, which led to the recent decision to plan to exit that business.

Our North American education business will report modest revenue growth at constant exchange rates, indicating another year of significant market share gains in North America. 2012 was a particularly tough year for the US educational materials industry, with net sales for the combined US School and Higher Education publishing industries declining by 11% in the first 11 months of the year, according to the AAP. Our services and digital learning revenues continued to grow rapidly and we benefited from a strong performance from recent acquisitions and tight cost control.

Our International education business will report double digit sales growth at constant exchange rates as we continued to perform well in developing markets, assessment and English Language Teaching. School publishing markets remained generally subdued as a result of macroeconomic pressure and weak government funding in developed markets. Margins will be level with 2011 as we continue to invest to build scale, particularly in developing markets.

Our Professional education business will report operating profits significantly lower than in 2011. We have achieved good growth once again in professional testing but our UK adult training business, Pearson in Practice, faced a dramatic fall in demand with changes to the apprenticeships programme. We believe this business no longer has a sustainable model and therefore recently announced that we are planning for the exit or closure of Pearson in Practice. As previously announced, the cost of closure and impairment is expected to be approximately £120m and will be reported as a loss on disposal in Pearson's 2012 statutory accounts.

The Financial Times Group will report good revenue growth for the full year, in spite of a slow fourth quarter caused by weaker advertising sales. Our digital and subscription-based revenues continued to grow well at both the FT and Mergermarket. The FT Group's full-year profits will be significantly lower than in 2011, reflecting the absence of a contribution from FTSE International following its disposal and further actions to accelerate the shift from print to digital.

Penguin benefited from a good fourth-quarter publishing performance and traded in line with our expectations in its key selling season. It will report revenues in line with 2011 at constant exchange rates in spite of rapid industry change and tough conditions in the physical book retail market. Following Pearson and Bertelsmann's announcement of their plans to combine Penguin with Random House, the two companies are seeking clearance for the proposed merger from appropriate regulatory authorities around the world. Though the timing of this process is inevitably uncertain, its completion will prompt significant restructuring as we demerge Penguin from Pearson and integrate it with Random House. We believe that the combined organisation will have a stronger platform and greater resources to invest in rich content, new digital publishing models and high-growth emerging markets.

For the full year, we expect our total interest charge to adjusted earnings to be approximately £50m (including a £12m pensions finance credit) and our effective tax rate to be around the low end of our guidance of 24-26% with our cash tax rate benefiting from the deferral of a tax payment into 2013.

Pearson generates approximately 60% of its sales in the US. The average £:$ exchange rate during 2012 was 1.59. The year end £:$ exchange rate was 1.63. A five cent move in the average £:$ exchange rate for the full year has an impact of approximately 1.4p on adjusted earnings per share.

ENDS

Final Results

Financial highlights*
· Sales up 5% at CER to £6.1bn (with digital and services businesses contributing 50% of sales)
· Adjusted operating profit 1% higher at £936m
· Adjusted EPS of 84.2p (86.5p in 2011)
· Operating cash flow of £788m (£983m in 2011)
· Return on invested capital of 9.1% (9.1% in 2011)
· Dividend raised 7% to 45.0p.

Market conditions and industry change
• Market conditions generally weak in developed world and for print publishing businesses; generally strong in emerging economies and for digital and services businesses.
• Continuing structural change in education funding, retail channels, consumer behaviour and content business models.
• Considerable growth opportunity in education driven by rapidly-growing global middle class, adoption of learning technologies, the connection between education and career prospects and increasing consumer spend, especially in emerging economies.

Strong competitive performance
· North American Education revenues up 2% in a year when US School and Higher Education publishing revenues declined by 10% for the industry as a whole.
· International Education revenues up 13% with emerging market revenues up 25%.
· FT Group revenues up 4% with the Financial Times' total paid print and online circulation up to 602,000; digital subscriptions exceed print circulation for the first time.
· Penguin revenues up 1%, with strong publishing performance and eBooks now 17% of sales.

Accelerated shift to digital & services and to fast-growing economies
· Pearson announces gross restructuring costs of approximately £150m in 2013 (£100m net of cost savings achieved in the year), focused on:
1. significantly accelerating the shift of Pearson's education businesses towards fast-growing economies and digital and services businesses;
2. separating Penguin activities from Pearson central services and operations in preparation for the merger of Penguin and Random House.

· Restructuring expected to generate annual cost savings of approximately £100m in 2014.
· In 2014, £100m of cost savings to be reinvested in organic development of fast-growing education markets and categories and further restructuring, including the Penguin Random House integration.
· From 2015, restructuring programme expected to produce faster growth, improving margins and stronger cash generation.


Outlook
· Pearson expects tough trading conditions and structural industry change to continue in 2013.
· Excluding restructuring costs and including Penguin for the full year, Pearson expects to achieve 2013 operating profit and adjusted EPS broadly level with 2012.

Interim Management Statement

Pearson, the world's leading learning company, is today holding its Annual General Meeting and providing an interim management statement for the first three months of 2013.

Pearson is trading in line with the expectations set out in our full-year results announcement on 25 February (http://bit.ly/ZkoXqf). In the first three months of the year, sales including Penguin increased by 3% at constant exchange rates to £1.2bn (a headline increase of 4% and an underlying decline of 1%).

We expect the external environment to remain challenging for our developed world and publishing businesses in 2013 owing to a combination of cyclical and structural factors: pressures on education budgets and college enrolments; retail consolidation; the shift in our business model from print sales to digital subscriptions; changing consumer behaviour and a dynamic competitive landscape. In general, we expect market conditions to remain favourable for our businesses in developing economies and education software and services.

While the current environment is challenging, industry changes present Pearson with a considerable growth opportunity in education driven by a rapidly-growing global middle class, adoption of learning technologies, the connection between education and career prospects and increasing consumer spend, especially in emerging economies. In order to reshape the company to take advantage of these significant growth opportunities, as previously announced we will expense approximately £150m of restructuring costs in 2013 (the restructuring cost will be approximately £100m net of cost savings achieved in the year). This investment has two objectives:

1. to accelerate our transition from print to digital business models and from developed to developing economies; and
2. to separate Penguin activities from Pearson central services and operations, and to reduce fixed cost infrastructure in Pearson, in preparation for the Penguin Random House merger.

We expect Pearson 2013 operating profits and adjusted EPS to be broadly level with 2012 before expensing these restructuring costs (compared to 2012 adjusted EPS of 82.6p under revised IAS 19 which we will adopt in 2013) and including Penguin for the full year. This guidance is struck at an exchange rate of £1:$1.59.

Pearson's profits are heavily weighted to the second half. We expect our first-half operating profits to be lower this year than in 2012, primarily as a result of the phasing of restructuring charges, particularly in our International Education division.

In education, market conditions remain generally weak in developed markets and stronger in emerging markets. In North America, we benefited from later second semester purchasing in higher education and good growth in digital but K12 markets remain weak due to ongoing uncertainty around funding and the timing of curriculum change. In International education emerging markets, direct to consumer, English Language Learning and digital continue to grow well but market conditions in developed markets, UK examinations & qualifications and traditional publishing were soft. Our Professional testing business continues to perform well with our publishing business remaining resilient.

The Financial Times Group is facing weak trading conditions for advertising, with a number of large campaigns focusing on the second quarter this year compared to the first quarter in 2012, but benefiting from resilient demand for our content and services. The FT has a global paid print and digital circulation of 602,000 and digital subscriptions grew 4% in the first quarter to 328,000. The Mergermarket Group has grown steadily with good renewal rates from its core products and the launch of Debtwire Analytics, PaRR and XportReporter.

Penguin has had a good start to the year with market share gains in all key territories boosted by bestsellers from Harlan Coben, Nora Roberts, Jamie Oliver and John Green. We received regulatory clearance for the Penguin Random House merger in the United States, Australia, New Zealand and, more recently, the European Union and Canada. We expect the transaction to close early in the second half of 2013, after all necessary approvals have been received.

At the end of 2012, Pearson's net debt was £918m, giving a net debt/ EBITDA ratio of 0.9x and interest cover of 18.0x. Our net debt increased during the first quarter by £397m to £1,315m as a result of the appreciation of the US dollar relative to sterling, tax payment on 2012 profits and the normal seasonal build-up of working capital ahead of our key selling periods in education. That strong balance sheet gives us headroom of approximately £0.5bn available to invest in bolt-on acquisitions.

At our AGM today, we are proposing a final dividend of 30p, giving a total dividend for 2012 of 45.0p, up 7%. For the 21st consecutive year, Pearson has declared a dividend increase above the rate of inflation.

Pearson generates approximately 60% of its sales in the US. A five cent move in the average £:$ exchange rate for the full year (which in 2012 was £1:$1.59) has an impact of approximately 1.4p on adjusted earnings per share.

Pearson's AGM takes place today at the Institute of Engineering and Technology, 2 Savoy Place, London WC2R 0BL at 12 noon.

ENDS

Pearson Directorate Change/ Merger Completion

PEARSON AND BERTELSMANN ANNOUNCE THE COMPLETION OF THE MERGER OF PENGUIN AND RANDOM HOUSE

Pearson and Bertelsmann today announce the completion of the joint venture between Penguin and Random House to create Penguin Random House, the world's leading consumer publishing company.

Penguin Random House will be the first truly global publishing company with operations in the US, Canada, UK, India, South Africa, Australia, New Zealand, Spain, Mexico, Argentina, Uruguay, Colombia and Chile. The new company employs more than 10,000 people and publishes more than 15,000 new titles every year across 250 imprints. It publishes many of the world's bestselling authors, including more than 70 Nobel Prize laureates.

Pearson and Bertelsmann believe that the combined organisation will have a stronger platform and greater resources to invest in rich content, new digital publishing models and high-growth emerging markets. The organisation will generate synergies from shared resources such as warehousing, distribution, printing and central functions. Pearson and Bertelsmann intend that the combined organisation's level of organic investment in authors and new product models will exceed the total investment of Penguin and Random House as independent publishing houses.

Investec Add 1,228.00 1,150.00 1,250.00 Upgrades

Exane BNP Paribas Outperform 1,228.00 1,430.00 1,430.00 Reiterates

Interim Results

Financial highlights*
· Sales up 5% at constant exchange rates (2% underlying growth) to £2.8bn.
· Good growth in Education (up 3%) led by North America (up 5%) and developing markets.
· FT Group sales broadly level with resilient content and subscription revenue offset by weak advertising.
· Penguin Random House merger completed on 1 July 2013; strong growth at Penguin (up 14%) in the first half.
· Adjusted operating profit £50m lower at £137m, including £37m of gross restructuring charges and, in addition, investments to support new product launches in the second half.
· Adjusted earnings per share down 4.9p to 9.9p including restructuring charges.
· Interim dividend up 7% to 16p.

Rapid growth in digital and services businesses and developing markets
· Underlying sales growth of 9% in developing markets.
· Education digital platform registrations up 19%; FT digital subscriptions up 14%.
· Headline deferred revenues from continuing operations up 12% to £692m, with a strong performance from subscription-based business models.

Acceleration of global education strategy
· Restructuring to shift education businesses towards fast-growing economies and digital and services businesses on track.
· Reorganisation of Pearson into one globally-connected education company. Pearson will organise around three global lines of business - School, Higher Education and Professional - and three geographic market categories - North America, Growth and Core from 2014.
· Global education strategy designed to produce faster growth, larger addressable market opportunity and greater impact on learning outcomes.
· Process to explore the possible sale of Mergermarket initiated.

Full year outlook reiterated
· Gross restructuring costs of approximately £150m in 2013 (£100m including cost savings achieved during the year).
· Adjusted EPS expected to be broadly level with 2012 adjusted EPS of 82.6p under revised IAS 19, before expensing restructuring costs.
· From 1 July 2013 Penguin Random House will be treated as an associate.

Investec Add 1,331.00 1,250.00 - Retains

Numis Hold 1,331.00 1,192.00 1,192.00 Retains

Interim Management Statement

PEARSON NINE-MONTH INTERIM MANAGEMENT STATEMENT

· Full year guidance reiterated: Adjusted EPS expected to be broadly level with 2012 adjusted EPS of 82.6p under revised IAS 19, before expensing restructuring costs.

· For the nine months, Sales up 4% at constant exchange rates; up 2% in underlying terms.

· 2013 adjusted operating profit before restructuring charges expected to be lower than in 2012 due to the accounting impact of the Penguin Random House transaction and weak market conditions for college textbooks in North American Education.

· Restructuring programme on track: full year gross restructuring costs of approximately £150m in 2013 or £100m after cost savings achieved during the year.

Pearson Acquires Grupo Multi

PEARSON ACQUIRES GRUPO MULTI: BECOMES THE market LEADER IN ADULT ENGLISH LANGUAGE TRAINING IN BRAZIL

Pearson, the world's leading learning company, has agreed to acquire 100% of Grupo Multi, the leading adult English Language Training company in Brazil. Pearson will acquire Grupo Multi from the Martins family, the company's 78% majority shareholders, and the investment firm Kinea for approximately £440m (R$1.7bn) in cash and the assumption of £65m (R$0.25bn) of debt.

Grupo Multi is the largest provider of private language schools in Brazil serving over 800,000 students across more than 2,600 franchised schools. It primarily delivers English language courses through a range of school brands including Wizard, Yazigi, Microlins and Skill. The acquisition builds on Pearson's global presence in the delivery of English language training and on its schools "sistemas" business in Brazil. Pearson already has over 600,000 students learning English at more than 250 Pearson operated and more than 350 Pearson franchised centres around the world. In addition, Pearson has approximately 500,000 students in K12 sistemas schools in Brazil.

The acquisition supports Pearson's strategy of focusing investment in fast-growing economies, digital and services business, and education programmes that can deliver a greater and measurable impact on learning outcomes.

Trading Statement

On 28 February 2014 we will announce our preliminary results for 2013 and we expect to report:

· Operating profit of approximately £865m before restructuring charges primarily reflecting the associate accounting impact of the Penguin Random House merger and lower underlying margins in North American Higher Education, particularly in the important fourth quarter.

· Adjusted EPS of around 83p before restructuring charges, in line with our previous guidance and 2012.

· Net restructuring costs of approximately £130m (comprising £170m expensed and £40m of savings achieved during the year) resulting in adjusted EPS of around 70p after restructuring charges.

JP Morgan Cazenove Neutral 1,149.00 1,490.00 1,250.00 Downgrades

Deutsche Bank Sell 1,149.00 1,000.00 1,000.00 Reiterates

Citigroup Buy 1,149.00 1,300.00 1,350.00 Upgrades

Preliminary Results

PEARSON 2013 PRELIMINARY RESULTS (UNAUDITED)

Financial highlights
· Sales up 2% at CER to £5.2bn. Good growth in digital, services and emerging markets partly offset by cyclical weakness in US higher education and school curriculum change in the US and UK.
· Adjusted operating profit before net restructuring charges 6% lower at £871m (£736m after £135m of net restructuring charges). 2013 profits reduced by accounting impact of the Penguin Random House merger, lower margins in North America, sustained investment, and revenue mix.
· Operating cash flow £588m (2012: £788m) reflecting restructuring charges, increased product investment in new education programmes and lower operating profit.
· Adjusted EPS of 70.1p after restructuring charges (2012: 82.6p).
· Dividend raised 7% to 48p reflecting our confidence in our prospects.

2014 outlook
· 2014 profits to reflect portfolio changes (Penguin Random House associate accounting; Mergermarket sale; Grupo Multi acquisition) and significant recent strengthening of Sterling against key currencies.
· Cyclical and policy-related pressures in our largest markets expected to persist, impacting revenues and margins.
· Still expect approximately £50m net restructuring to continue to reshape our publishing businesses; £50m organic investment in structural growth opportunities in digital, services and emerging markets.
· At current exchange rates, we expect to report adjusted earnings per share of between 62p and 67p in 2014.

2015 and longer term
· Pearson's strategy centres on a significant and exciting long-term opportunity: the sustained and growing global demand for greater access, achievement and affordability in education.
· We can meet this demand by accelerating our shift to digital, services and to fast-growing economies, and committing to deliver measurably improved learning outcomes (efficacy).
· We are investing in learning services, inside services, direct delivery and assessments and qualifications, and in school, higher education and English language learning. We are organising around a smaller number of global products and platforms, built around a single, world-class infrastructure and common systems and processes.
· In 2013 and 2014, we are executing a significant restructuring programme designed to reduce our exposure to structural pressures and to shift resources towards these growth opportunities. Our restructuring expenditure will return to more normal levels in 2015.
· In addition, we believe cyclical pressures will begin to ease from 2015 as curriculum change is implemented in the US and UK and US college enrolments stabilise and, in due course, return to growth.
· This strategy will enable us to help more people make progress in their lives through learning. It also provides Pearson with a larger market opportunity, a sharper focus on the fastest-growing markets and stronger financial returns in 2015 and beyond.

John Fallon, chief executive said:

"We are in the middle of what we believe will be a short, but difficult, transition - one that through our combined investment and restructuring programs will drive a leaner, more cash generative, faster growing business from 2015.

"We are uniquely positioned to tackle some of the biggest challenges in global education including the transforming power of technology. I am particularly excited about the significant opportunity digital education offers for Pearson and the next generation of learners."

AGM Statement

Interim Management Statement

FINANCIAL HIGHLIGHTS
· Sales up 2% at CER to £2.0bn reflecting good growth in digital, services and emerging markets, offset as expected, by the impact of school curriculum change in the US and the UK; also, this year, seasonal changes in phasing have helped first half sales in North America and hurt those in Core markets, especially the UK.
· Adjusted operating profit, excluding Mergermarket, of £73m down from £124m last year, due to increased net restructuring charges (£43m in 2014; £29m in 2013), currency movements and the impact on margins of the phasing of revenues into the second half of 2014.
· Adjusted EPS of 4.7p (2013: 9.9p) after restructuring charges.
· Dividend raised 6% to 17p reflecting our confidence in our prospects.

2014 FULL YEAR OUTLOOK UNCHANGED
· We reiterate the guidance we gave on 28 February 2014.
· 2014 profits to reflect portfolio changes (Penguin Random House associate accounting; Mergermarket sale; Grupo Multi acquisition) and significant strengthening of Sterling against key currencies.
· Cyclical and policy-related pressures in our largest markets expected to persist, impacting revenues and margins.
· Still expect approximately £50m net restructuring to continue to reshape our publishing businesses; £50m organic investment in structural growth opportunities in digital, services and emerging markets.
· Based on 28 February 2014 exchange rates, we still expect to report adjusted earnings per share of between 62p and 67p in 2014.

2015 AND LONGER TERM
· Pearson's strategy centres on a significant and exciting long-term opportunity: the sustained and growing global demand for greater access, achievement and affordability in education.
· We can meet this demand by accelerating our shift to digital, services and to fast-growing economies, and committing to deliver measurably improved learning outcomes (efficacy).
· We are investing in learning services, inside services, direct delivery and assessments and qualifications, and in school, higher education and English language learning. We are organising around a smaller number of global products and platforms, built around a single, world-class infrastructure and common systems and processes.
· In 2013 and 2014, we are executing a significant restructuring programme designed to reduce our exposure to structural pressures and to shift resources towards these growth opportunities. Our restructuring expenditure will return to more normal levels in 2015.
· In addition, we believe cyclical pressures will begin to ease from 2015 as curriculum change is implemented in the US and UK and US college enrolments stabilise and, in due course, return to growth.
· This strategy will enable us to help more people make progress in their lives through learning. It also provides Pearson with a larger market opportunity, a sharper focus on the fastest-growing markets and stronger financial returns in 2015 and beyond.

Gone long on PSON PEARSON. Historical P/E 20, forward P/E to 2015 falls to 15.5. Divi yield 4.62%.Strong momentum.

Carrying on from yesterday PSON opened up gapping upwards. Plenty of momentum.

PSON PEARSON, had a moderate punt on a S/Bet , is positive and looks like resistance turned support.

Interim Management Statement

Chief Financial Officer to stand down in 2015 after 10 years service

PEARSON NINE-MONTH INTERIM MANAGEMENT STATEMENT

· Full year guidance reiterated: Adjusted earnings per share expected to be between 62p and 67p in 2014.

· For the nine months, Sales up 1% at constant exchange rates; and level in underlying terms.

· Restructuring programme remains on track with full year net restructuring costs of approximately £50m in 2014. We still expect a return to normal levels of restructuring in 2015.

Pearson's chief executive John Fallon said: "We are reiterating our guidance for this year and, overall, we are performing well competitively through a period of change and in difficult markets. We still expect those markets to start to stabilise next year and then return to growth in future years. Our restructuring programme is on track and our momentum in digital, services and emerging market education is building, which will drive a leaner, more cash generative, faster growing business from 2015."

Interim Management Statement

JANUARY TRADING UPDATE

Pearson, the world's leading learning company, is today providing its regular January trading update.

· We expect to report 2014 results in line with the guidance we set out at the beginning of 2014 with adjusted operating profit and adjusted earnings per share expected to be approximately £720m and 66p, respectively.

· Our preliminary guidance range for 2015 adjusted earnings per share is 75p to 80p.

Hmmm, don't you love brokers :-

Investec Hold 1,290.50 1,052.00 - Reiterates

Liberum Capital Sell 1,290.50 660.00 660.00 Reiterates

Westhouse Securities Sell 1,290.50 995.00 995.00 Reiterates

Pearson is testing old highs - will it flunk it?

Annual Financial Report

2014 FINANCIAL HIGHLIGHTS
· Sales up 2% at CER to £4.9bn reflecting good growth in digital and services and the acquisition of Grupo Multi partly offset, as expected, by the impact of school curriculum change in the US and the UK, our two largest markets, and a smaller school textbook adoption in South Africa.
· Deferred revenue excluding Mergermarket up 10% at CER to more than £800m as a result of further good progress in our digital and services businesses.
· Adjusted operating profit (excluding Mergermarket) up 8% at CER to £720m (2013: £710m) with lower net restructuring charges (£44m in 2014; £135m in 2013) and the contribution from Grupo Multi partly offset by increased investment levels and revenue mix.
· Adjusted EPS of 66.7p (2013: 70.1p) reflecting exchange rate movements and a higher tax rate of 17.9% (2013: 14.6%).
· Operating cash flow £649m (2013: £588m) benefiting from improved working capital from deferred revenue growth and an increased dividend from Penguin Random House, partly offset by increased investment levels.
· Dividend raised 6% to 51p, our 23rd straight year of increasing our dividend above the rate of inflation.

2015 FULL YEAR OUTLOOK
· Based on exchange rates at the time of our 21 January 2015 trading update, we expect to report adjusted earnings per share of between 75p and 80p in 2015.
· 2015 profits to reflect: stabilisation of cyclical and policy-related factors in our largest markets; currency movement impact on revenues, operating income and interest charge (with Sterling weakness against the US Dollar partly offset by strengthening against the Euro, Australian Dollar and key emerging markets currencies); the benefits of 2014 restructuring partly offset by normal levels of net restructuring of approximately £30m to continue to reshape our business; and shared services costs remaining with Pearson following withdrawal of Penguin.
· Process to explore the possible sale of PowerSchool initiated.

STRATEGIC OUTLOOK
· Pearson's strategy centres on a significant and exciting long-term opportunity: the sustained and growing global demand for greater access, achievement and affordability in education.
· We can meet this demand by accelerating our shift to digital, services and to fast-growing economies, and committing to deliver measurably improved learning outcomes (efficacy).
· We are investing in learning services, inside services, direct delivery and assessments and qualifications, and in school, higher education and English language learning. We are organising around a smaller number of global products and platforms, built around a single, world-class infrastructure and common systems and processes.
· We believe cyclical pressures will ease as curriculum change is implemented in the US and UK and US college enrolments stabilise and, in due course, return to growth.
· This strategy will enable us to empower more people to progress in their lives through learning. It also provides Pearson with a larger market opportunity, a sharper focus on the fastest-growing markets and stronger financial returns in 2016 and longer term.

John Fallon, chief executive said:

"We've completed our intense two year restructuring and reinvestment programme and performed well competitively despite some challenging market conditions. We enter 2015 better placed to have a bigger impact on student learning through the combination of new technology and best teaching practice. This will enable us to empower more people to progress in their lives through learning and grow our market opportunity."

Interim Management Statement

Directorate Change

Chart of the week: A terrific set-up for a trader
By John C Burford, author of Tramline Trading, and Editor of MoneyWeek Trader

In these weekly articles, I will highlight a share that I believe has an interesting chart pattern. I am primarily a technical trader and use the methods I have developed that I call Tramline Trading. You can read more about my methods in my book Tramline Trading, which you can inspect here.

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My goal in these articles is to cover a share that has an interesting chart. I I developed my tramline system over several years to give me a set of rules which can provide me with trade entries at low risk. The low risk requirement was crucially important because no matter how firmly I believe in my trade, I could be wrong! And I wanted my wrong trades to hand me the smallest possible loss to my account. I figured the winners would take care of themselves.

My hope is that you glean useful ideas and employ at least some technical analysis to bolster your returns. In trading as well as investing, timing is a key factor in your eventual returns.

Pearson - an update

I covered the technical picture of Pearson (PSON) on 2 February and concluded that if a short term tramline could be broken, then odds favoured a continued decline from the current levels. This was my hourly chart:

(click to enlarge)

The key level was the wave 4 low at 1,320p. So let's see if that level was breached:

Here is the daily chart covering that January period:

(click to enlarge)

It is clear that my five up was not the end to the C wave rally - my lower tramline was not broken. And that is a lesson in waiting for a clear sell signal (broken tramline) to allow you to pull the trigger.

But with the weakening momentum, the rally high was put in late March and the market has dropped by 14% since then. My larger wave labels are proving to be correct, and rallies are likely to be good selling/shorting areas.

Carnival is cruising to a kiss

Carnival (CCL) is the world's largest cruise company and it has been in the news recently reporting that it is adding to its fleet sailing out of Shanghai, beefing up its presence in China's fast-growing leisure cruise market. That sounds bullish!

But it did report a loss last year, which is being corrected this year on the back of falling fuel costs. It does have headwinds, though. Fuel costs are "unexpectedly" rising again and the US dollar remains firm.

So how does the chart shape up? Here is the daily chart from last year:

(click to enlarge)

The market has rallied in five waves from the August low and I can draw a clear tramline pair (upper two tramlines) with the upper tramline sporting a nice Prior Pivot Point PPP) and accurate touch points in January and April.

The lower tramline, although not textbook, has the two major lows in February and May. Those two tramlines allowed me to draw in the third tramline T3, which gratifyingly passes through the major October low.

But today, the market has rallied to the underside of the centre tramline in what I call a "kiss". I have found that when a major tramline has been broken, the market usually comes back to that tramline and plants a kiss on it before moving sharply away in what I call a "scalded cat bounce".

In fact, that centre tramline, which represented support before the break, is now resistance.

Now let's look a little closer on the hourly chart:

(click to enlarge)

The green line is my centre tramline from the daily and the market has rallied off the early May low in a clear A-B-C form, which is counter-trend. Also, the market has rallied to the Fibonacci 50% level, which is a common turning point.

So today, the shares are at a major crossroads - an ideal place to enter trades.

Outlook

Either the kiss will result in a scalded cat bounce down from near current levels, or it will catch a bid and motor on through in a continuation of the C wave.

That is a terrific set-up for a trader! If you are inclined to be bearish, a very close stop can be employed, limiting risk. Remember, I am always looking for low risk trades - and this one is superb.

Statement re recent press speculation

Pearson notes recent press speculation and confirms that it is in advanced discussions regarding the potential disposal of FT Group although there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate.

Pearson to sell FT Group to Nikkei Inc.

Half Yearly Report

PEARSON 2015 INTERIM RESULTS (UNAUDITED)

FINANCIAL HIGHLIGHTS
Sales up 1% at CER to £2.2bn reflecting growth in North America, Brazil and China, and strength in digital and services, including Connections Education and Pearson On Line Services. This was partly offset by a smaller new textbook adoption market in US schools and the phasing of school textbook expenditure and lower college enrolments in South Africa.
Deferred revenue from continuing operations up 3% at CER to more than £750m as a result of further good progress in our digital and services businesses partly offset by lower deferred revenue in UK testing and in South Africa, due to lower college enrolments.
Adjusted operating profit from continuing operations down 4% at CER to £72m (2014: £73m). Sales growth, lower net restructuring charges, and growth in the contribution from Penguin Random House was offset by revenue mix, shared services costs related to the Penguin de-merger, and a contract termination charge arising from the transition of our three Saudi Arabian Colleges of Excellence to new providers.
Adjusted EPS of 4.4p (2014: 4.7p) primarily reflecting the absence of Mergermarket.
Dividend raised 6% to 18p.
On 23 July, Pearson announced its intention to sell FT Group to Nikkei Inc. for a gross consideration of £844m.

2015 FULL YEAR OUTLOOK
At our preliminary results on 27 February 2015 we stated that we expect to report adjusted earnings per share of between 75p and 80p in 2015, on the basis of ownership of PowerSchool for all of 2015 and based on exchange rates as at 21 January 2015. This guidance remains unchanged.
On 17 June 2015 we announced the sale of PowerSchool to Vista Equity Partners for $350m, which will reduce expected earnings per share by approximately 1p. If current exchange rates persist until the end of 2015 it would reduce earnings per share by approximately 2p.

STRATEGIC OUTLOOK
Pearson's strategy centres on a significant and exciting long-term opportunity: the sustained and growing global demand for greater access, achievement and affordability in education.
We can meet this demand by accelerating our shift to digital, services and to fast-growing economies, and committing to deliver measurably improved learning outcomes (efficacy).
We are investing in courseware, assessment and qualifications, managed services, and schools and colleges. We are organising around a smaller number of global products and platforms, built around a single, world-class infrastructure and common systems and processes.
We believe cyclical pressures will ease as curriculum change is implemented in the US and UK and US college enrolments stabilise and, in due course, return to growth. While UK policy pressures are easing as expected, the US policy environment remains uncertain.
This strategy will enable us to empower more people to progress in their lives through learning. It also provides Pearson with a larger market opportunity, a sharper focus on the fastest-growing markets and stronger financial returns in 2016 and longer term.

John Fallon, chief executive said:

"Overall, we're competing well, enabling us to reaffirm our full year guidance and increase the interim dividend. The new education products and services we're developing which will enable far more people of all ages to discover the joy of learning and progress in their careers. We believe the returns on the significant investments we are making to achieve this goal will be substantial for students, society and our shareholders."

Interim Management Statement

· Our competitive performance remained strong in the first nine months of the year with share gains across our major markets including US higher education courseware, US school courseware and UK qualifications.

· Cyclical and policy related factors made some of our largest markets weaker than we expected with, in particular, lower Community College enrolments and higher returns affecting the US higher education market; and lower purchasing in certain provinces affecting the school textbook market in South Africa.

· For the third quarter, sales were down 2% in headline terms, down 5% at constant exchange rates (CER) and down 4% in underlying terms. For the nine months, sales were up 2% in headline terms and down 2% at CER and in underlying terms.

· At our preliminary results on 27 February 2015 we stated that we expected to report adjusted earnings per share of between 75p and 80p in 2015, on the basis of no changes in portfolio for all of 2015 and based on exchange rates as at 21 January 2015. The disposal of PowerSchool, FT Group and The Economist Group, as well as movements in exchange rates, reduces this range by approximately 5p to 70p to 75p. Given a strong competitive performance but continued challenging market conditions, we expect our adjusted earnings per share to be around the bottom end of this range. This guidance is struck assuming: current exchange rates continue to the end of the year, no further acquisitions or disposals, a tax rate of approximately 15% and an interest charge of approximately £70m.

Pearson's chief executive John Fallon said:
"The key cyclical and policy-related factors which have been hurting our markets for some years have yet to improve. We are performing well competitively and gaining share across many areas of our business. We continue to manage our costs tightly while investing in new products and services to inspire the next generation of students."

Interim Management Statement

Pearson January trading update
Pearson is today providing its regular January trading update. In addition, we have undertaken a rigorous, bottom-up review of our markets, our operations and our financial plans. As a result, we are taking further action to simplify our business, reduce our costs and position ourselves for growth in our major markets. To quantify how this will drive Pearson's financial performance, we are providing earnings guidance for 2016 and setting out where we would expect to be by the end of 2018.

• 2015 results: we expect to report adjusted operating profit of approximately £720m and earnings per share of between 69p and 70p. We also intend to propose an unchanged final dividend of 34p per share giving a total dividend for 2015 of 52p per share, up 2% on 2014.
• Simplification and growth: we are taking further action to simplify our business, reduce our costs and position ourselves for growth in our major markets. We will complete the majority of these actions by mid-year and incur implementation costs of approximately £320m in 2016 and expect to generate annualised savings of approximately £350m, with approximately £250m of these savings in 2016 and a further £100m of these savings in 2017.
• 2018 goals: with the full benefits of our restructuring programme, the launch of new products, and stability returning to US college enrolments and the UK qualifications market by the end of 2017, we expect adjusted operating profit to be at or above £800m in 2018.
• Sustaining the dividend: Pearson plans to hold its dividend at the 2015 level while it rebuilds cover, reflecting the Board's confidence in the medium term outlook.
• 2016 outlook: In 2016, we expect to report operating profit and adjusted earnings per share before the costs of restructuring of between £580m and £620m and between 50p and 55p, respectively, with the in-year benefits from restructuring offset by the loss of operating profit from disposals made in 2015, ongoing challenging conditions in our largest markets, the reinstatement of the employee incentive pool and other operational factors. We are excluding the one-off cost of this major restructuring to better reflect the underlying earnings potential of the business. Operating profit after restructuring charges is expected to be in the £260m to £300m range.
• We will hold a conference call at 7.30am on Thursday, 21 January to present our headline plans. We will provide further detail on our strategy and our key financial assumptions at our preliminary results presentation in February.

Pearson's chief executive John Fallon said:

"Our competitive performance during the last three years has been strong, but the cyclical and policy related challenges in our biggest markets have been more pronounced and persisted for longer than anticipated.

"Faced with these challenges, we are today announcing decisive plans to further integrate the business and reduce the cost base, rationalise our product development and focus on fewer, bigger opportunities."

Pearson's chairman Sidney Taurel said:

"Pearson is a company with strong market positions, real competitive advantage and a significant medium-term market opportunity. The Board believes that the restructuring that we're announcing today will help build on these strengths and position Pearson to take advantage of its market opportunities, enjoying sustained growth. I look forward to working with John and the executive team to deliver this agenda."

Investec Add 772.25 748.00 - Reiterates

Liberum Capital Sell 772.25 540.00 540.00 Reiterates

Pearson January trading update

We expect to deliver operating profit in line with guidance for 2016, despite a further unprecedented decline in Q4 2016 in our North American higher education courseware business. Our 2016 restructuring program has been delivered in full and the financial benefits are a little higher than planned.

We are today announcing actions to accelerate our digital transition in higher education, to manage the print decline, and to reshape our portfolio. Our guidance for 2017 reflects continued challenges and uncertainty in the North American higher education courseware market and we no longer expect to reach our prior operating profit goal for 2018. The Board intends to recommend a final dividend of 34p for an overall 2016 dividend of 52p in line with our guidance, but as a result of the factors above we intend to rebase our dividend from 2017 onwards.

2016 results: we expect to report adjusted operating profit and adjusted earnings per share of approximately £630m and 57p, respectively, with revenues down approximately 8% in underlying terms primarily due to weakness in North American higher education courseware. We have continued to manage discretionary cost tightly and are accruing around £55m less than originally planned for our 2016 staff incentive programme, enabling us to report within the guidance range we had previously set.

Other than North American higher education courseware, our businesses have in aggregate performed in line with expectations. Online Program Management, virtual schools and professional certification all continued to grow. As expected US school courseware was impacted by a smaller market and lower participation rate, but benefited from share gains in Open Territories. North American student assessment profits rose slightly despite significant declines in revenue as we offset the impact of contract losses with cost reductions and the benefits of a higher weighting to digital services. In Core, our UK qualifications business is seeing a stabilisation in exam registrations as expected, and our Growth markets have returned to profitability.

The North American higher education courseware market was much weaker than expected. Our net revenues fell 30% during the final quarter resulting in an unprecedented 18% decline for the full year. We estimate 2% of this decline was driven by lower enrolment, particularly in Community College and amongst older students; 3-4% by an accelerated impact from rental in the secondary market; and approximately 12% due to an inventory correction in the channel reflecting the cumulative impact of these factors in prior years.

2017 actions: Whereas we had previously anticipated a broadly stable North American higher education courseware market in 2017, we now assume that many of these downward pressures will continue. We are the market leader in US Higher Education and will use that leadership to accelerate our shift to digital and maximise the value of our stand-alone text offerings with the following actions:

1. We are accelerating work to simplify our product technology platform and enhancing our courseware service capabilities with £50m of additional investment, which will remove barriers to faster product innovation, accelerate our product roadmap by two years and drive faster adoption of institution-wide Digital Direct Access for Pearson courseware.
2. We are increasing our participation in the courseware rental market, by:
a. reducing eBook rental prices by up to 50% across 2,000 titles - making digital rental the best option for price-conscious students.
b. launching our own print rental program, piloting with an initial group of 50 titles made available through Pearson's approved rental partners, ensuring Pearson is paid more often for the usage of our courseware. If successful we will scale this program rapidly.

Reshaping our portfolio: we are additionally announcing the following actions to reshape our portfolio and capital structure:

1. With the integration of Penguin Random House complete, and with greater industry-wide stability on digital terms, we intend to issue an exit notice regarding our 47% stake in Penguin Random House to our JV partner Bertelsmann in the contractual window, with a view to selling our stake or recapitalising the business and extracting a dividend.
2. We will use proceeds from this action to maintain a strong balance sheet; invest in our business; and return excess capital to shareholders whilst retaining an investment grade credit rating.
3. We will propose a final dividend of 34p for an overall 2016 dividend of 52p in line with 2015 and our guidance. For 2017 we intend to rebase our dividend to reflect portfolio changes, increased investment, and our 2017 earnings guidance.
4. We will continue to reduce our exposure to large scale direct delivery services and focus on more scalable online, virtual, and blended services, across our portfolio.

Outlook: The challenges we have faced during 2016 mean we begin 2017 with a base level of underlying profitability that is around £180m lower than we had expected in early 2016. Our preliminary guidance range is for operating profit in 2017 of £570m to £630m, driving adjusted earnings per share of 48.5p to 55.5p. This is based on our existing portfolio, a 2017 net interest charge of £74m, a tax rate of 20% and exchange rates on 31 December 2016.

This guidance is based on assumptions incorporating further declines in enrolment and other pressures in the North American higher education courseware market in 2017. The top of the range implies that this is offset as the impact of the 2016 inventory correction at key channel partners partially unwinds resulting in net revenue growth in our North American higher education courseware business of approximately 1%. The bottom of our guidance range assumes that inventory levels continue to fall resulting in a 7% net revenue decline. The rest of business is expected to perform broadly in line with trends seen in 2016.

We are withdrawing our operating profit goal for 2018 reflecting portfolio changes and challenging and uncertain markets.

Conference call: We will hold a conference call for analysts at 8.30am on Wednesday, 18 January to present our headline plans. We will provide further detail on our strategy and our key financial assumptions at our preliminary results presentation in February.

Full Year results: Pearson will report its preliminary results on 24 February 2017.

Pearson's chief executive John Fallon said:

"The education sector is going through an unprecedented period of change and volatility. We have already taken significant steps on restructuring, reducing our cost base by £375m last year.

"However our higher education business declined further and faster than expected in 2016.

"So we are taking more radical action to accelerate our shift to digital models, and to keep reshaping our business."

Pearson's chairman Sidney Taurel said:

"We are facing difficult trading conditions in our largest business as we transition to digital, but as a Board, we are confident that the plan announced today will allow the company to navigate these conditions and build on its leading position in higher education."

Liberum Capital Sell 633.75 470.00 470.00 Reiterates

At the risk of plagiarism.......'Plop'.

What a load of rubbish this is.

and profit warnings come in 3s

Final Results

Pearson, the world's learning company, is announcing its preliminary full year results for 2016, following its 18 January trading statement. Key headlines include:

· 2016 operating profit and eps slightly better than January 2017 guidance. Strong 2016 cash conversion
o Sales of £4,552m declined 8% in underlying terms. Good growth in Pearson VUE, US Virtual Schools Online Program Management and Wall Street English in China was more than offset by expected declines in US and UK student assessment and US school courseware, and a much worse than expected decline in North American higher education courseware, as detailed in our 18 January trading statement.
o Deferred revenue was broadly level in underlying terms and is now 18% of our revenues (2015: 16.5%).
o Adjusted operating profit of £635m was down 21% in underlying terms due to weaker revenues, the partial reinstatement of incentives and other operational factors, partially offset by cost savings from the restructuring plan announced in January 2016, a larger contribution from Penguin Random House, helped in part by modest one-off benefits from the integration programme, and a return to profit in our Growth segment.
o Adjusted earnings per share fell 16% to 58.8p reflecting weaker operating results, higher interest and a higher tax rate of 16.5%, offset by the strength of the US Dollar and other currencies against Sterling.
o Operating cash flow increased 52% benefitting from tight working capital control, lower cash incentive payments and the weakness of Sterling. Our cash conversion increased to 104% (2015: 60%).
o Net debt increased to £1,092m (2015: £654m) reflecting the strengthening of the US Dollar relative to Sterling and restructuring costs.
o Digital & services revenues now make up 68% of our total revenues (2015: 65%). We have made good progress in simplifying our technology platforms and seen strong growth in key digital products Revel, iLit, Q-Interactive, Connections Education and global wins in Online Program Management.

· 2016 statutory results and goodwill impairment: Statutory loss for the year of £2,335m included an impairment of goodwill of £2,548m. This impairment charge is consistent with the challenging market conditions which we disclosed in January, and which resulted in an outlook for profit which is approximately £180m lower than previously anticipated.

· 2016 restructuring program: Our 2016 restructuring program was delivered in full, reducing our cost base exiting 2016 by £425m at a cost of £338m. Adjusting for the impact of currency our plan delivered slightly higher benefits at a slightly lower cost than planned.

· 2017 guidance, strategic actions to accelerate digital, simplify the portfolio and preserve financial flexibility
o 2017 outlook in line with 18 January trading statement: Our guidance range is for operating profit in 2017 of £570m to £630m, adjusted earnings per share of 48.5p to 55.5p and cash conversion in excess of 90%. This is based on our existing portfolio, a 2017 net interest charge of £74m, a tax rate of approximately 20%, and exchange rates on 31 December 2016.
o Trading in early 2017: Our early trading is in line with expectations. The phasing in our North American higher education courseware business in 2017 will show a benefit from returns normalising in the first half, whilst the underlying market pressures we have described will impact gross sales primarily in the second half.

o Higher education courseware strategic actions: On 18 January we announced a series of actions, accelerating our work to simplify our product technology platform and enhancing our courseware service capabilities with £50m of additional investment, reducing eBook rental prices and launching our own print rental program piloting with an initial group of 50 titles made available through Pearson's approved rental partners. We have reduced prices for eBook rental across 2,000 titles, have made good progress on our print rental program and are today announcing details of the first wave of new digital products with greater personalisation, enhanced engagement and cognitive tutoring.
o Simplifying Pearson
§ Penguin Random House: With the integration of Penguin Random House complete, and with greater industry-wide stability on digital terms, we have issued an exit notice regarding our 47% stake in Penguin Random House to our JV partner Bertelsmann, in the contractual window, with a view to selling our stake or recapitalising the business and extracting a dividend. We will use proceeds from this action to maintain a strong balance sheet; invest in our business; and return excess capital to shareholders whilst retaining a solid investment grade credit rating. Our guidance assumes ownership of our stake in PRH for all of 2017.
§ Direct Delivery: We will continue to reduce our exposure to large scale direct delivery services and focus on more scalable online, virtual, and blended services, across our portfolio. We are today announcing that Pearson has initiated processes to explore a potential partnership for our English language learning business Wall Street English (WSE) and the possible sale of our English test preparation business Global Education (GEDU). These processes are at an early stage and there is no certainty that they will lead to transactions. In 2016, these businesses contributed £253m of revenues and £3m of adjusted operating income. Our guidance assumes ownership of both for all of 2017.
§ Efficiency: We continue to manage our costs tightly. We will take further actions to improve the overall efficiency of the company and continue to realign our cost base to reflect the changing needs of our markets. We will update on our plans through the year.
o Preserving financial flexibility
§ Debt repayment: To ensure efficient use of the cash balances we held at 31 December 2016, we are today announcing that we will trigger the early repayment option on our $550m 6.25% Global Dollar bonds 2018.
§ Rebasing the dividend: As already communicated in January, we intend to recommend a final dividend of 34p for an overall 2016 dividend of 52p in line with our guidance, but as a result of the factors above we intend to rebase our dividend from 2017 onwards.


Pearson's chief executive John Fallon said:

"2016 was a challenging year for Pearson, but we remain the global leader in education, with a strong market position.

"Our priorities for 2017 are clear. We will continue to accelerate our digital transformation, simplify our portfolio, control our costs, and focus our investment on the biggest growth opportunities in education."


Pearson's results presentation for investors and analysts will be audiocast live today from 0900 (GMT) and
available for replay from 1200 (GMT) via www.pearson.com. High resolution photographs for the media are
available from our website www.pearson.com.

more.....

Pearson has been hit by a slowdown in its US higher education arm and has fallen into a loss of £2.3 billion – the biggest in its history.
The publisher was forced to write-down the value of its printed publishing business, hurt by lower college enrolment in North America and students choosing to rent rather than buy books.

Pearson expects full-year profits to come in just above the middle of its target range and guided to growth of 8-18% for 2019. The education and learning specialist reported said adjusted operating profit for 2018 would come in at around £540-545m, narrowing its range from the prior £520-560m.