Pearson sees FY25 Assessment & Qualfications sales up low to mid-single digit

The company said, “Assessment & Qualifications growth will be H2 weighted with new and renewed contracts and the test prep business building during the year. Virtual Learning sales to decline in H1 given the final impact of previous school losses and the timing of funding in the previous year. Return to growth in H2 and the full year driven by enrolment increases, partially from new school openings, for the 25/26 academic year. Higher Education sales growth in 2025 will be higher than in 2024 as we build on the successful results of our sales team transformation and product innovations, particularly using AI. Growth will be relatively stable throughout the year. English Language Learning sales growth will moderate given the likely impacts of elections on immigration rates in 2025 affecting our PTE business, which is expected to decline in the year. Q1 declined in line with expectations and we expect growth to increase each quarter thereafter. We remain confident in the medium term outlook given demographic projections. Enterprise Learning & Skills sales to grow high single digit with Vocational Qualifications seeing solid growth and the addition of several new contracts for Enterprise Solutions. Growth will increase quarter on quarter.” Sees Adjusted Operating Profit in line with market expectations. Sees Adjusted net finance costs of c.GBP 65m reflecting the impact of the Education Bond and GBP 350m share buyback programme which commenced in March. Sees effective tax rate on adjusted profit before tax 24%-25%. Sees free cash flow conversion of 90%-100% plus the GBP0.1B State Aid repayment.