Pearson sees sales boosted by English language learning rebound

Education publisher Pearson has seen its sales grow 7% as it confirmed it is on track to shave off £100 million in costs by 2023.

The FTSE 100-listed firm said sales growth was driven by a post-pandemic resurgence in English language learning and normalisation of exam timetables.

It hailed a “robust” financial position and held firm on its full-year sales and profit expectations.

The publisher’s English language learning sales surged 28% in the first nine months of the year compared with the same period last year as “global mobility continues to improve with border reopenings”, it said.

In particular, English learning volumes grew sharply in India, and in Australia where there has been a temporary extension of post-study visa applications.

But Pearson warned that there will be “tougher comparisons” during the last three months of the year as a result of borders reopening at the end of last year.

Sales across its assessment and qualifications division jumped 12%, with a continued focus on health and wellness boosting its clinical assessment books.

Only its higher education unit took a hit – declining by 4%, driven down by a fall in the US where Pearson has its biggest market.

Last year, the publisher said a strong US jobs market had tempted potential students away from further study and into the workforce, which had disrupted its sales.

Chief executive Andy Bird said: “This has been another good quarter for Pearson and I am pleased with the continuing momentum the business is demonstrating through our sharp focus on delivery.

“We are executing well on our plan for accelerated margin improvement.

“We believe Pearson is well positioned for the future, and we are confident of being able to navigate the challenging macroeconomic environment.

“We are making strong progress in creating a digital learning ecosystem which can serve many more people across their lifetime of learning.”

The publisher’s move towards digital books and virtual learning has made it more resistant to supply chain problems and rises in commodity prices.

It has also put in place cost-cutting plans which are expected to improve the group’s margins between 2023 and 2025.

Pearson expects to make a median operating profit of £416 million, but it highlighted that profits are highly sensitive to movements in the value of the US dollar.

The US dollar has strengthened against a weakening pound in recent months, prompted by market turmoil in the UK.