Penguin and Education push Pearson

<p>Pearson Education grew faster than Penguin in 2007, according to parent Pearson, but Penguin saw a greater rise in profits. Penguin&#39;s underlying sales growth was 3% in 2007, with underlying profits up by 20%; while Pearson Education saw underlying sales rise by 6%, with profits up by 9%.<br /><br />The performances helped Pearson&#39;s sales increase by 6% to &pound;4.2bn and adjusted operating profit by 14% to a record &pound;634m. Marjorie Scardino, chief executive, said: &quot;This is another record set of results and an excellent performance from every part of Pearson. We continue to reshape Pearson into a more digital, more international and more efficient company, and those changes make us confident that 2008 will be another good year.&quot;<br /><br />Penguin&#39;s actual sales slipped marginally, from &pound;848m to &pound;846m in 2007, with adjusted operating profit up to &pound;74m, compared with &pound;66m a year earlier. The result put Penguin&#39;s profit margins up to 8.7%; Pearson said that it was on track for double-digit margins in 2008.</p><p>Penguin group chairman and chief executive John Makinson, commented: &quot;Penguin&#39;s remarkable 2007 performance rewards our determination to rebalance our publishing, rethink our supply chain and refocus as a global organisation. We can now look back at three successive years of double digit profit growth, providing the platform for us to achieve our target of a 10% margin in 2008.&nbsp; Every territory and every division of Penguin has contributed to this sustained improvement in performance.&quot;</p><p>Pearson pointed to a &quot;successful global publishing performance&quot; led by Alan Greenspan&#39;s <em>The Age of Turbulence</em>, and Kim Edwards&#39; first novel, <em>The Memory Keeper&#39;s Daughter</em>, as well as an &quot;outstanding year for bestsellers in the US&quot; with titles including Elizabeth Gilbert&#39;s <em>Eat, Pray, Love</em>; Khaled Hosseini&#39;s <em>A Thousand Splendid Suns</em>; and Ken Follett&#39;s <em>World Without End</em>. In the UK, it highlighted Marian Keyes&#39; <em>Anybody Out There?</em>, Jamie Oliver&#39;s <em>Jamie at Home</em>, Jeremy Clarkson&#39;s <em>Don&#39;t Stop Me Now</em> and Charlie Higson&#39;s <em>Double or Die</em>.</p><p>Pearson Education saw sales rise from &pound;2.6bn to &pound;2.7bn, with adjusted operating profits up to &pound;404m, compared with &pound;383m a year earlier. The result was driven by its school business, where sales grew 6% to &pound;1.5bn, with adjusted profits grew from &pound;184m to &pound;203m. Its higher education unit saw sales fall marginally to &pound;793m, with profits flat at &pound;161m. At its professional division sales were up 9% to &pound;353m, with profits up 11% to &pound;40m (on an underlying basis). </p><p>Pearson said that it expected another year of good profit growth, benefiting once again from the &quot;unique breadth of our education business&quot; - from pre-school to adult learning; across publishing, testing and technology; and in the US and around the world. While it said that Penguin&#39;s good publishing and trading performance had continued into the early part of 2008. </p>