The Pearson share price increased after the education company backed its annual guidance.
Pearson PLC (LON: PSON) shares rose in early European trading on Monday after the British education goods company reaffirmed its full-year earnings guidance and provided an update on its planned digital transformation.
The company, which intends to refocus its operations on delivering educational programmes directly to consumers, reported that its fiscal year revenue and adjusted operating profit projections remain unchanged.
Pearson said that its margin outlook for 2023 to 2025 has improved, owing in part to £100 million in cost reductions as the company restructures.
Pearson stated, “[t]he more integrated platform we are constructing throughout the organisation is producing efficiencies, supporting our updated forecast for rapid margin improvement.”
In the meantime, the company’s first-half adjusted operating profit increased by 22 percent to £160 million on sales growth of 6 percent to roughly $1.79 billion.
Normalization of exam schedules following COVID disruptions and improved performance at its health-centered clinical assessment division contributed to the improvement in results. These factors contributed to balancing last year’s price increases, portfolio investments, and cost reductions.
The earnings come after Pearson rejected three acquisition approaches from buyout firm Apollo, stating that the offers “significantly undervalued the company and future prospects.”
Pearson stated in March that it was “confident” that its digital strategy would generate long-term, sustainable profits for its shareholders.
