Pearson PLC 6-K, filed Apr 29, 2022
Pearson PLC (PSO)
6-K
2022-04-29
For: 2022-04-29
View Original
Added on
April 08, 2026
About this 6-K
Pearson PLC filed this 6-K on April 29, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April
2022
PEARSON plc
(Exact
name of registrant as specified in its charter)
N/A
(Translation
of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address
of principal executive office)
Indicate
by check mark whether the Registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F
X
Form 40-F
Indicate
by check mark whether the Registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes
No X
Pearson 2022 Q1 Trading Update (Unaudited)
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29th April
2022
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Continued momentum with underlying sales growth of 7% in the first
quarter
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Highlights
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Ongoing
strategic and operational progress, with underlying sales growth of
7%. 2022 adjusted operating profit guidance
reaffirmed.
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Direct to consumer
strategy strengthened with acquisition of Mondly further enhancing
our position in English Language Learning.
●
First tranche of
£350m share buyback commenced.
Andy Bird, Pearson's Chief Executive,
said:
"Pearson has continued to make strong strategic, operational and
financial progress through the first quarter. Underlying sales grew
by 7%, and we remain on track to deliver on our 2022 financial
expectations and medium term guidance.
"Our acquisition of Mondly, one of the world's leading online
language learning platforms, is another exciting strategic
development. It strengthens Pearson's direct to consumer strategy
and supports our ambition to become the global leader in English
language learning for committed learners.
"We remain sharply focused on the successful execution of our
strategy and we are encouraged by the momentum we are seeing across
the business."
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Underlying sales growth of 7%
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Assessment &
Qualifications sales grew 22% with growth across all areas. US
Student Assessment delivered a strong performance partially
reflecting the normalisation of exam timetables. Clinical
Assessment also delivered a strong performance due in part to the
phasing of orders.
●
Virtual Learning sales
increased 3% underpinned by strong retention rates in Virtual
Schools and growth in OPM. As announced on 19th April,
our OPM contract with ASU will end as of June
2023.
●
English Language
Learning sales increased 18%, with growth in Pearson Test of
English volumes weighted to Q1 from borders re-opening and
improving global mobility.
●
Workforce Skills sales
grew 9% (excluding acquisitions) driven by ongoing growth in BTEC,
GED and TalentLens. We made good strategic progress with
Pearson's GED Testing Service selected as an education partner for
Amazon's Career Choice programme.
●
Higher Education sales
were down 5% due to expected declines in US Higher Education
reflecting the continued decline in enrolments and courses per
enrolment combined for the 2021/22 academic
year.
●
Sales in businesses
under strategic review decreased 11% as
expected.
Strategically important acquisition of Mondly in English Language
Learning announced today
●
The acquisition marks
another step in our digital strategy, giving us access to the fast
growing direct to consumer English language learning
market.
●
Strategic growth area
for Pearson with synergies and cross-selling opportunities,
particularly in Institutional, Pearson Test of English and
Workforce Skills.
●
Full details are available in the
press release on our website, https://plc.pearson.com/en-GB/news/pearson-acquires-leading-online-language-learning-platform.
Share buyback programme to return £350m to
shareholders
●
First tranche commenced
in April, of which over £75m already
completed.
Financial summary
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Underlying growth
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Sales
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Assessment & Qualifications
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22%
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Virtual Learning
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3%
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English Language Learning
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18%
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Workforce Skills
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9%
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Higher Education
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(5)%
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Strategic review
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(11)%
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Total
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7%
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Throughout this announcement growth rates are stated on an
underlying basis unless otherwise stated. Underlying growth rates
exclude currency movements and portfolio changes.
Financial update
The statute of limitations on a number of tax provisions lapsed in
April 2022. This will lead to a one-off impact in 2022, reducing
our effective tax rate from current market expectations of c.21% to
15-17%, and our interest charge from c.£57m to
£10m-£15m. For 2023, we currently expect our tax rate to
be in the range of 23-25%, reflecting our geographical footprint,
and our interest charge to be £40m-£45m. We anticipate
that a decision regarding the ongoing EU Commission investigation
into whether certain aspects of the UK tax system constituted State
Aid could be announced over the summer.
Contacts
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Investor Relations
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Jo Russell
James Caddy
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+44 (0) 7785 451 266
+44 (0) 7825 948 218
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Media
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Tom Steiner
Gemma Terry
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+44 (0) 7787 415 891
+44 (0) 7841 363 216
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Teneo
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Charles Armitstead
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+44 (0) 7703 330 269
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Notes
Forward looking statements: Except for the historical information
contained herein, the matters discussed in this statement include
forward-looking statements. In particular, all statements that
express forecasts, expectations and projections with respect to
future matters, including trends in results of operations, margins,
growth rates, overall market trends, the impact of interest or
exchange rates, the availability of financing, anticipated cost
savings and synergies and the execution of Pearson's strategy, are
forward-looking statements. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that will occur in future. They
are based on numerous assumptions regarding Pearson's present and
future business strategies and the environment in which it will
operate in the future. There are a number of factors which could
cause actual results and developments to differ materially from
those expressed or implied by these forward-looking statements,
including a number of factors outside Pearson's control. These
include international, national and local conditions, as well as
competition. They also include other risks detailed from time to
time in Pearson's publicly-filed documents and you are advised to
read, in particular, the risk factors set out in Pearson's latest
annual report and accounts, which can be found on its website
(www.pearsonplc.com). Any forward-looking statements speak only as
of the date they are made, and Pearson gives no undertaking to
update forward-looking statements to reflect any changes in its
expectations with regard thereto or any changes to events,
conditions or circumstances on which any such statement is based.
Readers are cautioned not to place undue reliance on such
forward-looking statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PEARSON
plc
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Date: 29
April 2022
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By: /s/
NATALIE WHITE
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------------------------------------
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Natalie
White
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Deputy
Company Secretary
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