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Pearson PLC on Wednesday kept its medium term outlook unchanged as it said remained well positioned to deliver value for shareholders. Shares in the London-based educational materials publisher fell 5.1% to 1,021.00 pence each on Wednesday morning in London, making it the worst performer on the FTSE 100, which was up 0.3%. Pearson reported underlying group sales growth of 4% for the year, with momentum strengthening into the fourth quarter, where sales rose 8%. Adjusted operating profit is expected to come in at £610 million to £615 million, up around 6% on an underlying basis. Free cash flow conversion exceeded 95%, supported by strong cash generation and a £100 million state aid repayment. Pearson said Assessment & Qualifications arm delivered 4% 2025 growth, with the fourth-quarter accelerating due to new contracts and a recovery in US Student Assessment. Virtual Learning sales rose 8% for the year and 20% in fourth-quarter. Higher Education sales edged up 2% annually and were flat in the final quarter, while English Language Learning grew 1% in 2025 and 8% in the fourth quarter. Enterprise Learning & Skills advanced 6% yearly and 13% in the last quarter. Pearson highlighted strategic progress, including the launch of Microsoft 365-integrated tool Communication Coach. Net debt stood at around £1.1 billion. Looking ahead, the company reiterated its medium-term outlook for mid-single-digit sales growth, sustained margin improvement and free cash flow conversion of 90% to 100%. Chief Executive Omar Abbosh said: ‘In 2025 we successfully delivered against our financial and strategic priorities by expanding our partnerships, growing our Enterprise reach, and advancing the use of AI to improve learning and upskilling. All of this was achieved thanks to the strong delivery of our people, who have been focused on executing for our customers. We enter 2026 with momentum, are excited about the opportunities that lie ahead, and remain well positioned to deliver value to our stakeholders.’ Person will release its 2025 results on February 27. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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