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Pearson has announced it is trading ahead of expectations so far this year, with its interim results showing a 25% increase in adjusted operating profit year-on-year for the first half of 2009.
Although Penguin and the FT Group have both been "trading in line with expectations", against the wider economic gloom, the company's half-year results, released this morning, showed Pearson Education was "trading ahead [of expectations] and gaining share". The education division saw sales at a constant exchange rates increase 5% to £1.521bn, with the international arm – which includes the UK – growing 13%, from £365m in the first half of 2008 to £446m in the same period this year. This compares with an overall 1% growth, to £2.398bn, for the group. Penguin saw sales contract 8%. Pearson's adjusted profits grew to £158m, compared with £124m a year earlier.
Chief executive Marjorie Scardino said: "The transformation we’ve been pursuing for a decade–from ‘publishing’ company to content, technology and services company – is paying off. Over the past six years, Pearson has delivered substantial growth; this year is about proving our resilience and competitive edge. So far, we’ve passed the test. Market conditions are tough and may stay that way; but we are confident that we will perform well this year and next."
In a statement released to the market this morning, Pearson attributed much of growth in the international education arm, of which John Fallon is chief executive, to testing and qualifications. "We expect this business to continue to show good growth as it benefits from global growth trends in education, rolls out our major digital programmes internationally, expands into developing markets, integrates bolt-on acquisitions and achieves further operational efficiencies," the statement said.
Key areas of success within the UK include Pearson's testing group Edexcel winning nearly 70% of the government's new Diploma business and rising enrolment into its self-test programme MyLab.