30 July 2021
Strong
rebound, momentum and early strategic
progress
|
|
|
|
||
Andy Bird, Chief Executive said:
"Pearson
has made good strategic, operational and financial progress in the
first half of 2021 leading to healthy revenue and profit growth in
the period. This reflects a strong rebound from 2020 with
encouraging momentum in the underlying business. We are pleased to
declare an interim dividend of 6.3p for our
shareholders.
"Today
we have reached a significant milestone in our direct-to-consumer
strategy with the launch of our new college app, Pearson+. This
will provide learners with the accessible, flexible and affordable
resources they need for success. It also enables us to create
direct relationships with learners and to continue to engage with
them as they move into their careers."
"Whilst
there's still much to do in the second half, with the key back to
school selling season ahead of us and notwithstanding ongoing
COVID-related uncertainty in some of our major markets, we are
moving with pace and purpose and we remain on track to meet current
market expectations."
|
||
Highlights
|
Underlying revenue up 17% to £1,597m
● Global Online
Learning up 25% driven by strong growth in US Virtual Schools;
modest growth in OPM with good
underlying growth offset by discontinued
programs.
● Global Assessment
grew 34% with growth across all divisions, following the closure of
test centres and schools and exam cancellations in
2020.
● North American
Courseware up 2%, driven by a recovery in Canada which more than
offset a 2% decline in US Higher Education Courseware.
● International grew
8% with growth in courseware, clinical assessment and PTE following
school, bookstore and test centre closures last year.
Adjusted operating profit of £127m, following loss of
£(23)m in H1 2020
● Recovery with
operating leverage from trading, cost savings, and favourable
timing partially offset by inflation and FX.
● Adjusted EPS 10.5p
(H1 2020: loss of (5.1)p).
● Net interest
payable of £27m (H1 2020: £27m). Interest on borrowings
increased slightly, offset by favourable timing and a one-off gain
following the close out of interest rate swaps.
Strong balance sheet and cash flow with H1 net debt of £646m
(H1 2020: £982m)
● Interim dividend of
6.3p declared (H1 2020: 6.0p), an increase of 5%.
● Available liquidity
of approximately £1.4bn at the end of the period.
Statutory results
● Sales increased 7%
to £1,597m (2020: £1,492m) reflecting underlying
performance, partially offset by portfolio changes and currency
movements.
● Statutory operating
profit £9m in H1 2021 (H1 2020: £107m), with the decrease
due to the profit on disposal of Penguin Random House in 2020
and restructuring costs in 2021 partially offset by improved
trading and reduced intangible charges.
● Statutory EPS 2.3p
(H1 2020: 6.3p).
Early strategic progress
● Implementation of
new organisational structure with management team in place for
H2.
● Strategic review of
international courseware local publishing businesses
progressed.
● Pearson+, our new
college learning app for US students launched today:
o Enables direct
relationship with millions of students.
o Accelerates
recapture of secondary market.
o Flexible
and affordable subscription plans.
2021 outlook
● H2 revenue
expectations broadly consistent with assumptions outlined on 8
March 2021*:
o Virtual Learning
revenue flat with enrolments in Virtual Schools broadly flat for
2021/22, and discontinued programs in OPM offsetting underlying
growth.
o Higher Education
to decline as expected; less than seen in recent
years.
o School
Assessment growth to offset performance in Professional
Certification after strong H2 2020 due to pent up
demand.
o Ongoing growth
in Workforce Skills.
o English Language
Learning impacted by continuing COVID-19 pressure on migration and
mobility, with further local lockdowns in key market Australia and
borders expected to remain closed until 2022.
o International
markets opening more slowly than hoped given new COVID-19
variants.
We
continue to expect adjusted operating profit for FY21 to be in line
with market expectations.**
|
Financial summary
|
|
|
|||||
£m
|
H1 2021
|
H1
2020
|
Headline
growth
|
CER
growth
|
Underlying
growth
|
||
Business performance
|
|
|
|
|
|
||
Sales
|
1,597
|
1,492
|
7%
|
16%
|
17%
|
||
Adjusted
operating profit/(loss)
|
127
|
(23)
|
652%
|
722%
|
858%
|
||
Operating
cash flow
|
10
|
(214)
|
|
|
|
||
Adjusted
earnings/(loss) per share (basic)
|
10.5p
|
(5.1)p
|
|
|
|
||
Dividend
per share
|
6.3p
|
6.0p
|
|
|
|
||
Net
debt
|
(646)
|
(982)
|
|
|
|
||
Statutory results
|
|
|
|
|
|
||
Sales
|
1,597
|
1,492
|
|
|
|
||
Operating
profit
|
9
|
107
|
|
|
|
||
Net
cash generated from / (used in) operations
|
79
|
(117)
|
|
|
|
||
Basic
earnings per share
|
2.3p
|
6.3p
|
|
|
|
||
|
|
|
|
|
|
|
|
Investor Relations
|
Jo
Russell
Anjali
Kotak
Teddy
Symington
|
+44
(0) 7785 451 266
+44
(0) 7940 490 442
+44
(0) 7443 354 088
|
Media
|
Tom
Steiner
Gemma
Terry
|
+44
(0) 7787 415 891
+44
(0) 7841 363 216
|
Teneo
|
Charles
Armitstead
|
+44 (0)
7703 330 269
|
Virtual event
|
Pearson's
half year results virtual presentation today for investors and
analysts from 0830 (BST). Register to receive login details:
https://pearson.connectid.cloud/register/
|
Balance sheet and cashflow
|
Net debt and cashflow. H1 net debt of £646m
(H1 2020: £982m) including net lease liability of £530m.
Net cash generated from operations was an inflow of £79m in
2021 compared to an outflow of £117m in 2020, with higher
operating cash inflow and lower restructuring costs paid. Operating
cash flow increased on a headline basis by £224m from an
outflow of £214m in the first half of 2020 to an inflow of
£10m in the first half of 2021. The increase is largely
explained by the drop-through of increased trading profits,
improved working capital and a reduction in capital
expenditure.
Capital allocation. Our disciplined approach to capital
allocation and to maintaining a strong balance sheet will play a
major part in driving long-term growth. We will create further
value through investing in the business, whilst being disciplined
about returns on investment, delivering a sustainable and
progressive dividend and returning any surplus cash to our
shareholders.
Dividend. In line with our policy, the Board is
declaring an interim dividend of 6.3p (2020: 6.0p) payable on 20
September 2021, an increase of 5%.
|
Executive changes
|
Mike
Howells, currently Chief Strategy Officer and Interim President of
Workforce Skills, is taking on the Workforce Skills role on a
permanent basis. We will be looking to appoint a new Chief Strategy
Officer in due course.
Anna
Vikström Persson is stepping down as Chief Human Resources
Officer, having helped deliver significant transformation and led
efforts to increase our focus on diversity, equity and inclusion.
We will be looking to appoint a new Chief Human Resources Officer
in due course.
|
£ millions
|
H1 2021
|
H1
2020
|
Headline
growth
|
CER
growth
|
Underlying
growth
|
Sales
|
|
|
|
|
|
Global
Online Learning
|
355
|
316
|
12%
|
25%
|
25%
|
Global
Assessment
|
480
|
397
|
21%
|
34%
|
34%
|
North
American Courseware
|
346
|
375
|
(8)%
|
2%
|
2%
|
International
|
416
|
404
|
3%
|
6%
|
8%
|
Total sales
|
1,597
|
1,492
|
7%
|
16%
|
17%
|
|
|
|
|
|
|
Adjusted operating profit/(loss)
|
|
|
|
|
|
Global
Online Learning
|
48
|
24
|
100%
|
129%
|
129%
|
Global
Assessment
|
147
|
71
|
107%
|
131%
|
131%
|
North
American Courseware
|
43
|
36
|
19%
|
33%
|
33%
|
International
|
72
|
46
|
57%
|
57%
|
49%
|
Enabling
Functions
|
(183)
|
(201)
|
9%
|
2%
|
2%
|
Penguin
Random House
|
-
|
1
|
(100)%
|
(100)%
|
-
|
Total adjusted operating profit/(loss)
|
127
|
(23)
|
652%
|
722%
|
858%
|
Global Online Learning
|
|
||||||
Underlying
revenue was up 25% with strong growth in Virtual Schools due to
enrolment growth in the 2020/21 school year and growth in district
partnerships, alongside modest growth in OPM. Headline revenue growth of 12% was lower due to
FX.
Adjusted
operating profit increased 100% in headline terms and 129% in
underlying terms as the margin on sales growth more than offset
investment in virtual schools, and improved marketing efficiency in
OPM outweighed the impact of discontinued programs.
In
Virtual Schools, revenue grew strongly due to growth in enrolments
in Partner Schools for the 2020/21 school year as well as growth in
US district partnerships. We continue to expect enrolments for the
2021/22 school year to be broadly flat, with fewer new applications
(decline of 17%; 2020 - increase of 61%), as expected, following
the surge in 2020, offset by good retention.
Five
new full-time online, state-wide partner schools will be serving
students in the 2021/22 school year. Combined with one contract
exit this will bring the total number of partner schools to 47. Our
state coverage is also expanding with the launch of a school in
Rhode Island, bringing the total number of states to
30.
In OPM revenue grew slightly with good growth in partnerships in
the UK and US offset by the ongoing impact of discontinued programs
in the US and Australia. Underlying course enrolments (excluding
discontinued programs) grew 11% with total course enrolments
growing 7%.
|
|
||||||
Global Assessment
|
|
||||||
Underlying
revenue was up 34% with growth across all divisions, following the
closure of test centres and schools and exam cancellations in 2020.
Headline revenue growth of 21% was lower due to FX.
Adjusted
operating profit increased 107% in headline terms and 131% in
underlying terms due to the impact of trading, at a good
margin.
US
Student Assessment revenue was up moderately on last year as
following exam cancellations in 2020, reuse of materials and the
shift of some testing to the fall weighed against a full
rebound.
In
Pearson VUE, sales rebounded strongly following test centre
closures in Q2 2020. During H1, loosening restrictions on capacity
and pent-up demand supported volume growth in our centres. We
continue to monitor and adhere to local health
guidelines regarding social distancing measures. We saw growth in
our OnVUE volumes from 580k at H1 2020 to 1.6m in H1 2021 driven by
continuing strong demand from the IT sector. In H1, Pearson VUE signed 23 new agreements and
renewed 34 existing contracts.
In US
Clinical Assessment sales rebounded strongly with the reopening of
schools and delivery of a backlog of special education
assessments.
|
|
||||||
North American Courseware
|
|
||||||
North
American Courseware underlying revenue grew 2%, driven by a
recovery in Canada which more than offset a 2% decline in US Higher
Education Courseware underlying revenue. Headline revenue declined
8% due to FX.
Adjusted
operating profit increased 19% in headline terms and 33% in
underlying terms due to sales flow through in Canada and cost
savings.
In Canada underlying sales grew strongly following school and
bookstore closures in Q2 2020, as well as a school funding increase
earlier this year.
In US HE Courseware underlying sales declined 2%, in line with
expectations, due to the continuation of trends seen in previous
years, including further declines in print revenue. In a
seasonally lighter first half, we saw good growth in total units.
We continued to see early signs of secondary market recapture, with
growth in digital sales as learners opted for more affordable
digital options in place of higher priced print products, and unit
growth in eBooks and platform products which more than offset
declines in print and bundle units. We continue to make good
progress with our strategy of shifting from ownership to access,
with Inclusive Access sales into non-profit institutions up
23%.
Q3 remains an important quarter and we expect similar trends as
seen in recent years with further unbundling of packages and
declines in print, albeit with a smaller impact.
We have today launched our new college learning app, Pearson+, for
back to school 2021, as part of our strategy to build strong,
long-term relationships with millions of students. The app provides
a better user experience for students with enhanced functionality
and will accelerate our recapture of the secondary
market. We have introduced a flexible and
affordable subscription plan, pricing access to the app at
$9.99/month for a Single eText or $14.99/month for Multi Access
eText. Students will need to sign on for an initial minimum period
of 4 months.
The majority of our Revel titles have now been enhanced with
capabilities from the Pearson Learning Platform and we are starting
to upgrade our MyLab and Mastering titles with these capabilities.
We have also launched Interactive Labs, a new feature in some of
our Mastering titles, a virtual science experience that replicates
a lab environment.
|
|
||||||
International
|
|
||||||
Underlying
revenue increased 8% with growth in courseware, clinical assessment
and PTE following school, bookstore and test centre closures last
year, with recovery slower in markets where pandemic conditions
persist. Headline revenue growth of 3% was lower due to FX and the
disposal of Pearson Institution of Higher Education which completed
in February 2021.
Adjusted
operating profit grew 57% in headline terms and 49% in underlying
terms due to sales flow through from trading and cost
savings.
School
& HE Courseware grew strongly following school and bookstore
closures in 2020, and a strong performance in South Africa due to
timing of purchases in the first half.
Assessment
revenues were up slightly as strong growth in Clinical in Europe
was partially offset by a decline in School Assessment, where UK
exam cancellations impacted general and vocational
qualifications.
English courseware rebounded, driven by recovery in China with the
re-opening of private language schools in 2021. PTE revenues grew
strongly as test centres largely reopened, but remain under
pressure due to reduced global mobility and border closures in our
key market of Australia.
|
|
||||||
Enabling Functions
|
|
||||||
Enabling Functions were 9% lower in headline terms and 2% lower in
underlying terms due to cost savings.
|
|
||||||
We show below our performance in the half under the new divisional
structure announced on 8 March,
which will become our primary operating segments in the second half
when the implementation of our new organisation structure will be
finalised. Pro forma actual and comparative financial information
on this basis is included below and in the appendix of our results
presentation today.
|
|
||||||
Pro forma financials - new divisions
|
|
||||||
£ millions
|
H1 2021
|
H1
2020
|
Headline
growth
|
CER
growth
|
Underlying
growth
|
|
|
Sales
|
|
|
|
|
|
|
|
Virtual
Learning
|
353
|
314
|
12%
|
25%
|
25%
|
|
|
Higher
Education
|
358
|
391
|
(8)%
|
1%
|
1%
|
|
|
English
Language Learning
|
89
|
78
|
14%
|
22%
|
22%
|
|
|
Workforce
Skills
|
112
|
110
|
2%
|
4%
|
4%
|
|
|
Assessment
& Qualifications
|
574
|
484
|
19%
|
29%
|
29%
|
|
|
Businesses
under strategic review
|
111
|
115
|
(3)%
|
1%
|
10%
|
|
|
Total sales
|
1,597
|
1,492
|
7%
|
16%
|
17%
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit/(loss)
|
|
|
|
|
|
|
|
Virtual
Learning
|
14
|
(6)
|
333%
|
450%
|
450%
|
|
|
Higher
Education
|
1
|
(28)
|
104%
|
111%
|
111%
|
|
|
English
Language Learning
|
(11)
|
(16)
|
31%
|
19%
|
19%
|
|
|
Workforce
Skills
|
34
|
38
|
(11)%
|
(13)%
|
(13)%
|
|
|
Assessment
& Qualifications
|
97
|
10
|
870%
|
980%
|
980%
|
|
|
Businesses
under strategic review*
|
(8)
|
(21)
|
62%
|
57%
|
53%
|
|
|
Total adjusted operating profit/(loss)
|
127
|
(23)
|
652%
|
722%
|
858%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Operating
profit
|
|
9
|
107
|
411
|
Add
back: Cost of major restructuring
|
|
85
|
-
|
-
|
Add
back: Intangible charges
|
|
27
|
51
|
80
|
Add
back: Other net gains and losses
|
|
6
|
(181)
|
(178)
|
Adjusted
operating profit / (loss)
|
|
127
|
(23)
|
313
|
|
|
|
|
|
all figures in £ millions
|
note
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
Sales
|
2
|
1,597
|
1,492
|
3,397
|
Cost of
goods sold
|
|
(838)
|
(848)
|
(1,767)
|
Gross
profit
|
|
759
|
644
|
1,630
|
|
|
|
|
|
Operating
expenses
|
|
(744)
|
(720)
|
(1,402)
|
Other
net gains and losses
|
2
|
(6)
|
181
|
178
|
Share
of results of joint ventures and associates
|
|
-
|
2
|
5
|
Operating
profit
|
2
|
9
|
107
|
411
|
|
|
|
|
|
Finance
costs
|
3
|
(31)
|
(88)
|
(107)
|
Finance
income
|
3
|
26
|
16
|
50
|
Profit
before tax
|
4
|
4
|
35
|
354
|
Income
tax
|
5
|
14
|
13
|
(44)
|
Profit
for the period
|
|
18
|
48
|
310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the company
|
|
17
|
48
|
310
|
Non-controlling
interest
|
|
1
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (in pence per
share)
|
|
|
|
|
Basic
|
6
|
2.3p
|
6.3p
|
41.0p
|
Diluted
|
6
|
2.2p
|
6.3p
|
41.0p
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Profit
for the period
|
|
18
|
48
|
310
|
|
|
|
|
|
Items
that may be reclassified to the income statement
|
|
|
|
|
Net
exchange differences on translation of foreign
operations
|
|
(41)
|
154
|
(109)
|
Currency
translation adjustment on disposals
|
|
4
|
(70)
|
(70)
|
Attributable
tax
|
|
-
|
-
|
(13)
|
|
|
|
|
|
Items
that are not reclassified to the income statement
|
|
|
|
|
Fair
value gain on other financial assets
|
|
22
|
-
|
14
|
Attributable
tax
|
|
(5)
|
(2)
|
(6)
|
|
|
|
|
|
Remeasurement of
retirement benefit obligations
|
|
33
|
4
|
(23)
|
Attributable
tax
|
|
(36)
|
(1)
|
2
|
Other
comprehensive (expense) / income for the period
|
|
(23)
|
85
|
(205)
|
|
|
|
|
|
Total
comprehensive (expense) / income for the period
|
|
(5)
|
133
|
105
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the company
|
|
(6)
|
133
|
105
|
Non-controlling
interest
|
|
1
|
-
|
-
|
|
|
|
|
|
all figures in £ millions
|
note
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Property,
plant and equipment
|
|
453
|
637
|
515
|
Intangible
assets
|
11
|
2,686
|
3,008
|
2,742
|
Investments
in joint ventures and associates
|
|
12
|
6
|
6
|
Deferred
income tax assets
|
|
45
|
56
|
32
|
Financial
assets - derivative financial instruments
|
|
34
|
47
|
45
|
Retirement
benefit assets
|
|
437
|
438
|
410
|
Other
financial assets
|
|
160
|
133
|
138
|
Trade
and other receivables
|
|
137
|
312
|
223
|
Non-current assets
|
|
3,964
|
4,637
|
4,111
|
|
|
|
|
|
Intangible
assets - pre-publication
|
|
875
|
917
|
905
|
Inventories
|
|
126
|
174
|
129
|
Trade
and other receivables
|
|
1,147
|
1,087
|
1,118
|
Financial
assets - derivative financial instruments
|
|
5
|
15
|
18
|
Current
income tax assets
|
|
134
|
-
|
-
|
Cash
and cash equivalents (excluding overdrafts)
|
|
648
|
687
|
1,097
|
Current assets
|
|
2,935
|
2,880
|
3,267
|
|
|
|
|
|
Assets
classified as held for sale
|
10
|
18
|
-
|
73
|
Total assets
|
|
6,917
|
7,517
|
7,451
|
|
|
|
|
|
Financial
liabilities - borrowings
|
|
(1,259)
|
(1,550)
|
(1,397)
|
Financial
liabilities - derivative financial instruments
|
|
(31)
|
(65)
|
(40)
|
Deferred
income tax liabilities
|
|
(103)
|
(43)
|
(62)
|
Retirement
benefit obligations
|
|
(79)
|
(103)
|
(85)
|
Provisions
for other liabilities and charges
|
|
(8)
|
(12)
|
(8)
|
Other
liabilities
|
12
|
(61)
|
(67)
|
(80)
|
Non-current liabilities
|
|
(1,541)
|
(1,840)
|
(1,672)
|
|
|
|
|
|
Trade
and other liabilities
|
12
|
(1,049)
|
(1,048)
|
(1,196)
|
Financial
liabilities - borrowings
|
|
(156)
|
(292)
|
(254)
|
Financial
liabilities - derivative financial instruments
|
|
(8)
|
(22)
|
(12)
|
Current
income tax liabilities
|
|
(95)
|
(83)
|
(84)
|
Provisions
for other liabilities and charges
|
|
(26)
|
(39)
|
(25)
|
Current liabilities
|
|
(1,334)
|
(1,484)
|
(1,571)
|
|
|
|
|
|
Liabilities
classified as held for sale
|
10
|
(3)
|
-
|
(74)
|
Total liabilities
|
|
(2,878)
|
(3,324)
|
(3,317)
|
|
|
|
|
|
Net assets
|
|
4,039
|
4,193
|
4,134
|
|
|
|
|
|
Share
capital
|
|
189
|
188
|
188
|
Share
premium
|
|
2,622
|
2,616
|
2,620
|
Treasury
shares
|
|
(7)
|
(17)
|
(7)
|
Reserves
|
|
1,225
|
1,396
|
1,324
|
Total
equity attributable to equity holders of the company
|
|
4,029
|
4,183
|
4,125
|
Non-controlling
interest
|
|
10
|
10
|
9
|
Total equity
|
|
4,039
|
4,193
|
4,134
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
all figures in £ millions
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
2021
half year
|
||||||||||
At
1 January 2021
|
188
|
2,620
|
(7)
|
18
|
53
|
388
|
865
|
4,125
|
9
|
4,134
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
17
|
17
|
1
|
18
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
22
|
(37)
|
(8)
|
(23)
|
-
|
(23)
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
22
|
(37)
|
9
|
(6)
|
1
|
(5)
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
16
|
16
|
-
|
16
|
Tax on
equity settled transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Issue
of ordinary shares
|
1
|
2
|
(1)
|
-
|
-
|
-
|
-
|
2
|
-
|
2
|
Buyback
of equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Purchase of
treasury shares
|
-
|
-
|
(6)
|
-
|
-
|
-
|
-
|
(6)
|
-
|
(6)
|
Release
of treasury shares
|
-
|
-
|
7
|
-
|
-
|
-
|
(7)
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(102)
|
(102)
|
-
|
(102)
|
At
30 June 2021
|
189
|
2,622
|
(7)
|
18
|
75
|
351
|
781
|
4,029
|
10
|
4,039
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
all figures in £ millions
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
2020
half year
|
||||||||||
At 1
January 2020
|
195
|
2,614
|
(24)
|
11
|
39
|
567
|
911
|
4,313
|
10
|
4,323
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
48
|
48
|
-
|
48
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
-
|
84
|
1
|
85
|
-
|
85
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
-
|
84
|
49
|
133
|
-
|
133
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
12
|
12
|
-
|
12
|
Tax on
equity settled transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Issue
of ordinary shares
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
2
|
Buyback
of equity
|
(7)
|
-
|
-
|
7
|
-
|
-
|
(176)
|
(176)
|
-
|
(176)
|
Purchase of
treasury shares
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Release
of treasury shares
|
-
|
-
|
7
|
-
|
-
|
-
|
(7)
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(101)
|
(101)
|
-
|
(101)
|
At 30
June 2020
|
188
|
2,616
|
(17)
|
18
|
39
|
651
|
688
|
4,183
|
10
|
4,193
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
all figures in £ millions
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
2020
full year
|
||||||||||
At 1
January 2020
|
195
|
2,614
|
(24)
|
11
|
39
|
567
|
911
|
4,313
|
10
|
4,323
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
310
|
310
|
-
|
310
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
14
|
(179)
|
(40)
|
(205)
|
-
|
(205)
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
14
|
(179)
|
270
|
105
|
-
|
105
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
29
|
29
|
-
|
29
|
Tax on
equity settled transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Issue
of ordinary shares
|
-
|
6
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
6
|
Buyback
of equity
|
(7)
|
-
|
-
|
7
|
-
|
-
|
(176)
|
(176)
|
-
|
(176)
|
Purchase of
treasury shares
|
-
|
-
|
(6)
|
-
|
-
|
-
|
-
|
(6)
|
-
|
(6)
|
Release
of treasury shares
|
-
|
-
|
23
|
-
|
-
|
-
|
(23)
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(146)
|
(146)
|
(1)
|
(147)
|
At 31
December 2020
|
188
|
2,620
|
(7)
|
18
|
53
|
388
|
865
|
4,125
|
9
|
4,134
|
|
|
|
|
|
all figures in £ millions
|
note
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Cash
flows from operating activities
|
|
|
|
|
Net
cash generated from / (used in) operations
|
17
|
79
|
(117)
|
450
|
Interest
paid
|
|
(33)
|
(46)
|
(63)
|
Tax
(paid) / received
|
|
(121)
|
20
|
2
|
Net
cash (used in) / generated from operating activities
|
|
(75)
|
(143)
|
389
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
13
|
(6)
|
(6)
|
(6)
|
Acquisition of
joint ventures and associates
|
13
|
(5)
|
-
|
-
|
Purchase of
investments
|
|
(1)
|
(4)
|
(6)
|
Purchase of
property, plant and equipment
|
|
(31)
|
(30)
|
(53)
|
Purchase of
intangible assets
|
|
(39)
|
(48)
|
(81)
|
Disposal of
subsidiaries, net of cash disposed
|
14
|
(7)
|
58
|
100
|
Proceeds from sale
of joint ventures and associates
|
14
|
-
|
531
|
531
|
Lease
receivables repaid
|
|
6
|
13
|
41
|
Loans
repaid by related parties
|
|
-
|
49
|
48
|
Interest
received
|
|
3
|
13
|
13
|
Dividends received
from joint ventures and associates
|
|
-
|
3
|
4
|
Net
cash generated (used in) / from investing activities
|
|
(80)
|
579
|
591
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Proceeds from issue
of ordinary shares
|
|
2
|
2
|
6
|
Buyback
of equity
|
|
-
|
(176)
|
(176)
|
Purchase of
treasury shares
|
|
(6)
|
-
|
(6)
|
Proceeds from
borrowings
|
|
-
|
350
|
346
|
Repayment of
borrowings
|
|
(167)
|
(230)
|
(230)
|
Repayment of lease
liabilities
|
|
(36)
|
(43)
|
(92)
|
Dividends paid to
company's shareholders
|
|
(102)
|
(101)
|
(146)
|
Dividends paid to
non-controlling interest
|
|
-
|
-
|
(1)
|
Net
cash used in financing activities
|
|
(309)
|
(198)
|
(299)
|
|
|
|
|
|
Effects
of exchange rate changes on cash and cash equivalents
|
|
(1)
|
12
|
(2)
|
Net
(decrease) / increase in cash and cash equivalents
|
|
(465)
|
250
|
679
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period
|
|
1,113
|
434
|
434
|
Cash
and cash equivalents at end of period
|
|
648
|
684
|
1,113
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Sales
|
|
|
|
|
Global
Online Learning
|
|
355
|
316
|
697
|
Global
Assessments
|
|
480
|
397
|
892
|
North
American Courseware
|
|
346
|
375
|
894
|
International
|
|
416
|
404
|
914
|
Total
sales
|
|
1,597
|
1,492
|
3,397
|
|
|
|
|
|
Adjusted
operating profit
|
|
|
|
|
Global
Online Learning
|
|
48
|
24
|
99
|
Global
Assessments
|
|
147
|
71
|
245
|
North
American Courseware
|
|
43
|
36
|
190
|
International
|
|
72
|
46
|
182
|
Enabling
Functions
|
|
(183)
|
(201)
|
(404)
|
PRH
|
|
-
|
1
|
1
|
Total
adjusted operating profit / (loss)
|
|
127
|
(23)
|
313
|
all figures in £ millions
|
Global
Online Learning
|
Global
Assessments
|
North
American Courseware
|
International
|
Total
|
|
|
|
|
|
|
2021
half year
|
|||||
Courseware
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
61
|
158
|
219
|
Products and
services transferred over time
|
-
|
-
|
281
|
25
|
306
|
|
-
|
-
|
342
|
183
|
525
|
Assessments
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
49
|
-
|
35
|
84
|
Products and
services transferred over time
|
-
|
431
|
-
|
160
|
591
|
|
-
|
480
|
-
|
195
|
675
|
Services
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
-
|
19
|
19
|
Products and
services transferred over time
|
355
|
-
|
4
|
19
|
378
|
|
355
|
-
|
4
|
38
|
397
|
|
|
|
|
|
|
Total
sales
|
355
|
480
|
346
|
416
|
1,597
|
|
|
|
|
|
|
2020
half year
|
|||||
Courseware¹
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
80
|
147
|
227
|
Products and
services transferred over time
|
-
|
-
|
288
|
20
|
308
|
|
-
|
-
|
368
|
167
|
535
|
Assessments
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
39
|
-
|
22
|
61
|
Products and
services transferred over time
|
-
|
358
|
-
|
164
|
522
|
|
-
|
397
|
-
|
186
|
583
|
Services²
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
-
|
26
|
26
|
Products and
services transferred over time
|
316
|
-
|
7
|
25
|
348
|
|
316
|
-
|
7
|
51
|
374
|
|
|
|
|
|
|
Total
sales
|
316
|
397
|
375
|
404
|
1,492
|
all figures in £ millions
|
Global
Online Learning
|
Global
Assessments
|
North
American Courseware
|
International
|
Total
|
|
|
|
|
|
|
2020
full year
|
|||||
Courseware
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
261
|
409
|
670
|
Products and
services transferred over time
|
-
|
-
|
621
|
75
|
696
|
|
-
|
-
|
882
|
484
|
1,366
|
Assessments
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
96
|
-
|
52
|
148
|
Products and
services transferred over time
|
-
|
796
|
-
|
275
|
1,071
|
|
-
|
892
|
-
|
327
|
1,219
|
Services
|
|
|
|
|
|
Products
transferred at a point in time
|
-
|
-
|
-
|
44
|
44
|
Products and
services transferred over time
|
697
|
-
|
12
|
59
|
768
|
|
697
|
-
|
12
|
103
|
812
|
|
|
|
|
|
|
Total
sales
|
697
|
892
|
894
|
914
|
3,397
|
|
Global
Online Learning
|
Global
Assessments
|
North
American Courseware
|
International
|
Enabling
Functions
|
PRH
|
Total
|
all figures in £ millions
|
|||||||
|
|||||||
2021
half year
|
|||||||
Adjusted operating
profit / (loss)
|
48
|
147
|
43
|
72
|
(183)
|
-
|
127
|
Cost of
major restructuring
|
(2)
|
(2)
|
(17)
|
(1)
|
(63)
|
-
|
(85)
|
Intangible
charges
|
(12)
|
(9)
|
-
|
(6)
|
-
|
-
|
(27)
|
Other
net gains and losses
|
-
|
-
|
-
|
(6)
|
-
|
-
|
(6)
|
Operating
profit / (loss)
|
34
|
136
|
26
|
59
|
(246)
|
-
|
9
|
|
|
|
|
|
|
|
|
2020
half year
|
|||||||
Adjusted operating
profit / (loss)
|
24
|
71
|
36
|
46
|
(201)
|
1
|
(23)
|
Cost of
major restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Intangible
charges
|
(15)
|
(26)
|
-
|
(10)
|
-
|
-
|
(51)
|
Other
net gains and losses
|
-
|
-
|
1
|
-
|
-
|
180
|
181
|
Operating profit /
(loss)
|
9
|
45
|
37
|
36
|
(201)
|
181
|
107
|
|
|
|
|
|
|
|
|
2020
full year
|
|||||||
Adjusted operating
profit / (loss)
|
99
|
245
|
190
|
182
|
(404)
|
1
|
313
|
Cost of
major restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Intangible
charges
|
(29)
|
(36)
|
-
|
(15)
|
-
|
-
|
(80)
|
Other
net gains and losses
|
-
|
-
|
3
|
(5)
|
-
|
180
|
178
|
Operating profit /
(loss)
|
70
|
209
|
193
|
162
|
(404)
|
181
|
411
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Net
interest payable
|
|
(27)
|
(27)
|
(61)
|
Net
finance income in respect of retirement benefits
|
|
2
|
3
|
6
|
Fair
value re-measurement of disposal proceeds
|
|
5
|
(14)
|
26
|
Net
foreign exchange gains / (losses)
|
|
1
|
(6)
|
(6)
|
Derivatives not in
a hedge relationship
|
|
14
|
(28)
|
(22)
|
Net
finance costs
|
|
(5)
|
(72)
|
(57)
|
|
|
|
|
|
Analysed
as:
|
|
|
|
|
Finance
costs
|
|
(31)
|
(88)
|
(107)
|
Finance
income
|
|
26
|
16
|
50
|
Net
finance costs
|
|
(5)
|
(72)
|
(57)
|
|
|
|
|
|
Analysed
as:
|
|
|
|
|
Net
interest payable reflected in adjusted earnings
|
|
(27)
|
(27)
|
(61)
|
Other
net finance costs
|
|
22
|
(45)
|
4
|
Net
finance costs
|
|
(5)
|
(72)
|
(57)
|
|
|
|
|
|
all figures in £ millions
|
note
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Profit
before tax
|
|
4
|
35
|
354
|
Cost of
major restructuring
|
2
|
85
|
-
|
-
|
Other
net gains and losses
|
2
|
6
|
(181)
|
(178)
|
Intangible
charges
|
2
|
27
|
51
|
80
|
Other
net finance (income) / costs
|
3
|
(22)
|
45
|
(4)
|
Adjusted
profit / (loss) before tax
|
|
100
|
(50)
|
252
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Income
tax benefit / (charge)
|
|
14
|
13
|
(44)
|
Tax
benefit on cost of major restructuring
|
|
(21)
|
-
|
-
|
Tax
(benefit) / charge on other net gains and losses
|
|
(10)
|
-
|
3
|
Tax
(benefit) / charge on intangible charges
|
|
(12)
|
7
|
(22)
|
Tax
charge / (benefit) on other net finance costs
|
|
5
|
(9)
|
4
|
Tax
amortisation benefit on goodwill and intangibles
|
|
4
|
-
|
24
|
Adjusted
income tax (charge) / benefit
|
|
(20)
|
11
|
(35)
|
|
|
|
|
|
Tax
rate reflected in statutory earnings
|
|
(350.0)%
|
(37.1)%
|
12.5%
|
Tax
rate reflected in adjusted earnings
|
|
20.0
%
|
21.0
%
|
13.7%
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Earnings for the
period
|
|
18
|
48
|
310
|
Non-controlling
interest
|
|
(1)
|
-
|
-
|
Earnings
attributable to equity shareholders
|
|
17
|
48
|
310
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (millions)
|
|
753.2
|
759.2
|
755.4
|
Effect
of dilutive share options (millions)
|
|
3.4
|
0.0
|
0.0
|
Weighted average
number of shares (millions) for diluted earnings
|
|
756.6
|
759.2
|
755.4
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
Basic
|
|
2.3p
|
6.3p
|
41.0p
|
Diluted
|
|
2.2p
|
6.3p
|
41.0p
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
note
|
Statutory
income statement
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
Other
net finance costs
|
Tax
amortisation benefit
|
Adjusted
income statement
|
|
|
|
|
|
|
|
|
|
2021 half year
|
||||||||
Operating
profit
|
2
|
9
|
85
|
6
|
27
|
-
|
-
|
127
|
Net
finance costs
|
3
|
(5)
|
-
|
-
|
-
|
(22)
|
-
|
(27)
|
Profit
/ (loss) before tax
|
4
|
4
|
85
|
6
|
27
|
(22)
|
-
|
100
|
Income
tax
|
5
|
14
|
(21)
|
(10)
|
(12)
|
5
|
4
|
(20)
|
Profit
/ (loss) for the year
|
|
18
|
64
|
(4)
|
15
|
(17)
|
4
|
80
|
Non-controlling
interest
|
|
(1)
|
-
|
-
|
-
|
-
|
-
|
(1)
|
Earnings
/ (loss)
|
|
17
|
64
|
(4)
|
15
|
(17)
|
4
|
79
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
|
|
753.2
|
|||||
Weighted
average number of shares (millions) for diluted
earnings
|
|
|
756.6
|
|||||
|
|
|
|
|||||
Adjusted earnings per share (basic)
|
|
|
10.5p
|
|||||
Adjusted
earnings per share (diluted)
|
|
|
10.4p
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
note
|
Statutory
income statement
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
Other
net finance costs
|
Tax
amortisation benefit
|
Adjusted
income statement
|
|
|
|
|
|
|
|
|
|
2020
half year
|
||||||||
Operating
profit / (loss)
|
2
|
107
|
-
|
(181)
|
51
|
-
|
-
|
(23)
|
Net
finance costs
|
3
|
(72)
|
-
|
-
|
-
|
45
|
-
|
(27)
|
Profit
/ (loss) before tax
|
4
|
35
|
-
|
(181)
|
51
|
45
|
-
|
(50)
|
Income
tax
|
5
|
13
|
-
|
-
|
7
|
(9)
|
-
|
11
|
Profit
/ (loss) for the year
|
|
48
|
-
|
(181)
|
58
|
36
|
-
|
(39)
|
Non-controlling
interest
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Earnings
/ (loss)
|
|
48
|
-
|
(181)
|
58
|
36
|
-
|
(39)
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
|
|
759.2
|
|||||
Weighted
average number of shares (millions) for diluted
earnings
|
|
|
759.2
|
|||||
|
|
|
|
|||||
Adjusted loss per share (basic)
|
|
|
(5.1)p
|
|||||
Adjusted
loss per share (diluted)
|
|
|
(5.1)p
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
note
|
Statutory
income statement
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
Other
net finance costs
|
Tax
amortisation benefit
|
Adjusted
income statement
|
|
|
|
|
|
|
|
|
|
2020
full year
|
||||||||
Operating
profit / (loss)
|
2
|
411
|
-
|
(178)
|
80
|
-
|
-
|
313
|
Net
finance costs
|
3
|
(57)
|
-
|
-
|
-
|
(4)
|
-
|
(61)
|
Profit
/ (loss) before tax
|
4
|
354
|
-
|
(178)
|
80
|
(4)
|
-
|
252
|
Income
tax
|
5
|
(44)
|
-
|
3
|
(22)
|
4
|
24
|
(35)
|
Profit
/ (loss) for the year
|
|
310
|
-
|
(175)
|
58
|
-
|
24
|
217
|
Non-controlling
interest
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Earnings
/ (loss)
|
|
310
|
-
|
(175)
|
58
|
-
|
24
|
217
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (millions)
|
|
|
755.4
|
|||||
Weighted
average number of shares (millions) for diluted
earnings
|
|
|
755.4
|
|||||
|
|
|
|
|||||
Adjusted earnings per share (basic)
|
|
|
28.7p
|
|||||
Adjusted
earnings per share (diluted)
|
|
|
28.7p
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Amounts
recognised as distributions to equity shareholders in the
period
|
|
102
|
101
|
146
|
|
|
|
|
|
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Average
rate for profits
|
|
1.39
|
1.24
|
1.28
|
Period
end rate
|
|
1.38
|
1.23
|
1.37
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Property,
plant and equipment
|
|
-
|
-
|
48
|
Intangible
assets
|
|
3
|
-
|
-
|
Deferred
income tax assets
|
|
1
|
-
|
-
|
Non-current
assets
|
|
4
|
-
|
48
|
|
|
|
|
|
Intangible assets -
pre-publication
|
|
6
|
-
|
-
|
Inventories
|
|
3
|
-
|
-
|
Trade
and other receivables
|
|
5
|
-
|
6
|
Cash
and cash equivalents
|
|
-
|
-
|
19
|
Current
assets
|
|
14
|
-
|
25
|
|
|
|
|
|
Assets
classified as held for sale
|
|
18
|
-
|
73
|
|
|
|
|
|
Financial
liabilities - borrowings
|
|
-
|
-
|
(66)
|
Non-current
liabilities
|
|
-
|
-
|
(66)
|
|
|
|
|
|
Trade
and other liabilities
|
|
(3)
|
-
|
(5)
|
Financial
liabilities - borrowings
|
|
-
|
-
|
(3)
|
Current
liabilities
|
|
(3)
|
-
|
(8)
|
|
|
|
|
|
Liabilities
classified as held for sale
|
|
(3)
|
-
|
(74)
|
|
|
|
|
|
Net
assets / (liabilities) classified as held for sale
|
|
15
|
-
|
(1)
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Goodwill
|
|
2,073
|
2,253
|
2,094
|
Other
intangibles
|
|
613
|
755
|
648
|
Non-current
intangible assets
|
|
2,686
|
3,008
|
2,742
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Trade
payables
|
|
(228)
|
(216)
|
(340)
|
Sales
return liability
|
|
(59)
|
(78)
|
(86)
|
Accruals
|
|
(291)
|
(305)
|
(290)
|
Deferred
income
|
|
(339)
|
(324)
|
(356)
|
Other
liabilities
|
|
(193)
|
(192)
|
(204)
|
Trade
and other liabilities
|
|
(1,110)
|
(1,115)
|
(1,276)
|
|
|
|
|
|
Analysed
as:
|
|
|
|
|
Trade
and other liabilities - current
|
|
(1,049)
|
(1,048)
|
(1,196)
|
Other
liabilities - non-current
|
|
(61)
|
(67)
|
(80)
|
Total
trade and other liabilities
|
|
(1,110)
|
(1,115)
|
(1,276)
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Intangible
assets
|
|
2
|
-
|
-
|
Net assets acquired
|
|
2
|
-
|
-
|
Goodwill
|
|
2
|
-
|
-
|
Total
|
|
4
|
-
|
-
|
|
|
|
|
|
Satisfied by:
|
|
|
|
|
Cash
|
|
2
|
-
|
-
|
Deferred
consideration
|
|
2
|
-
|
-
|
Total consideration
|
|
4
|
-
|
-
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Cash -
current year acquisitions
|
|
(2)
|
-
|
-
|
Deferred
payments for prior year acquisitions
|
|
(4)
|
(6)
|
(6)
|
Net cash outflow on acquisitions
|
|
(6)
|
(6)
|
(6)
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Property,
plant and equipment
|
|
(48)
|
-
|
-
|
Investments
in joint ventures and associates
|
|
-
|
(418)
|
(418)
|
Trade
and other receivables
|
|
(2)
|
-
|
-
|
Cash
and cash equivalents (excluding overdrafts)
|
|
(21)
|
-
|
-
|
Trade
and other liabilities
|
|
1
|
-
|
-
|
Provisions for
other liabilities and charges
|
|
3
|
-
|
-
|
Financial
liabilities - borrowings
|
|
67
|
-
|
-
|
Cumulative
translation adjustment
|
|
(4)
|
70
|
70
|
Net assets disposed
|
|
(4)
|
(348)
|
(348)
|
|
|
|
|
|
Cash
proceeds
|
|
-
|
531
|
531
|
Costs
of disposal
|
|
(2)
|
(2)
|
1
|
(Loss) / gain on disposal
|
|
(6)
|
181
|
184
|
|
|
|
|
|
Cash flow from disposals
|
|
|
|
|
Proceeds
- current year disposals
|
|
-
|
531
|
531
|
Proceeds
- prior year disposals
|
|
16
|
61
|
105
|
Cash
and cash equivalents disposed
|
|
(21)
|
-
|
-
|
Costs
and other disposal liabilities paid
|
|
(2)
|
(3)
|
(5)
|
Net cash (outflow) / inflow from disposals
|
|
(7)
|
589
|
631
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Derivative
financial instruments
|
|
34
|
47
|
45
|
Trade
and other receivables - investment in finance lease
|
|
105
|
166
|
112
|
Current
assets
|
|
|
|
|
Derivative
financial instruments
|
|
5
|
15
|
18
|
Trade
and other receivables - investment in finance lease
|
|
16
|
32
|
18
|
Cash
and cash equivalents (excluding overdrafts)
|
|
648
|
687
|
1,116
|
Non-current
liabilities
|
|
|
|
|
Borrowings
|
|
(1,259)
|
(1,550)
|
(1,463)
|
Derivative
financial instruments
|
|
(31)
|
(65)
|
(40)
|
Current
liabilities
|
|
|
|
|
Borrowings
|
|
(156)
|
(292)
|
(257)
|
Derivative
financial instruments
|
|
(8)
|
(22)
|
(12)
|
Net
debt
|
|
(646)
|
(982)
|
(463)
|
|
Level
1
|
Level
2
|
---Level
3---
|
Total
fair value
|
|
all figures in £ millions
|
FVTPL -
Cash and cash equivalents
|
Derivatives
|
FVOCI
Investments
|
FVTPL -
Other
receivables
|
|
|
|
|
|
|
|
2021
half year
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
160
|
-
|
160
|
Other
receivables
|
-
|
-
|
-
|
85
|
85
|
Cash
and cash equivalents
|
75
|
-
|
-
|
-
|
75
|
Derivative
financial instruments
|
-
|
39
|
-
|
-
|
39
|
Total
financial assets held at fair value
|
75
|
39
|
160
|
85
|
359
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(39)
|
-
|
-
|
(39)
|
Total
financial liabilities held at fair value
|
-
|
(39)
|
-
|
-
|
(39)
|
|
|
|
|
|
|
2020
half year
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
133
|
-
|
133
|
Other
receivables
|
-
|
-
|
-
|
120
|
120
|
Cash
and cash equivalents
|
47
|
-
|
-
|
-
|
47
|
Derivative
financial instruments
|
-
|
62
|
-
|
-
|
62
|
Total
financial assets held at fair value
|
47
|
62
|
133
|
120
|
362
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(87)
|
-
|
-
|
(87)
|
Total
financial liabilities held at fair value
|
-
|
(87)
|
-
|
-
|
(87)
|
|
|
|
|
|
|
2020
full year
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
138
|
-
|
138
|
Other
receivables
|
-
|
-
|
-
|
96
|
96
|
Cash
and cash equivalents
|
93
|
-
|
-
|
-
|
93
|
Derivative
financial instruments
|
-
|
63
|
-
|
-
|
63
|
Total
financial assets held at fair value
|
93
|
63
|
138
|
96
|
390
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(52)
|
-
|
-
|
(52)
|
Total
financial liabilities held at fair value
|
-
|
(52)
|
-
|
-
|
(52)
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
FVTPL
- other receivables
|
|
|
|
|
At
beginning of period / at acquisition
|
|
96
|
182
|
182
|
Exchange
differences - OCI
|
|
(1)
|
13
|
(7)
|
Repayments
|
|
(16)
|
(61)
|
(105)
|
Fair
value movements - income statement
|
|
5
|
(14)
|
26
|
At
end of period
|
|
84
|
120
|
96
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Investments
in unlisted securities
|
|
|
|
|
At
beginning of period
|
|
138
|
122
|
122
|
Exchange
differences - OCI
|
|
(1)
|
7
|
(4)
|
Additions
|
|
1
|
4
|
6
|
Fair
value movements - OCI
|
|
22
|
-
|
14
|
At
end of period
|
|
160
|
133
|
138
|
|
|
|
|
|
all figures in £ millions
|
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Reconciliation
of profit for the period to net cash generated from / (used in)
operations
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
18
|
48
|
310
|
Income
tax
|
|
(14)
|
(13)
|
44
|
Depreciation,
amortisation and impairment charges
|
|
187
|
165
|
317
|
Net
loss / (profit) on disposal of businesses
|
|
6
|
(181)
|
(184)
|
Other
net gains and losses
|
|
-
|
-
|
6
|
Net
loss on disposal of fixed assets
|
|
4
|
2
|
2
|
Net
profit on disposal of right of use assets including transfers to
investment in finance lease receivable
|
|
-
|
-
|
(6)
|
Net
finance costs
|
|
5
|
72
|
57
|
Share
of results of joint ventures and associates
|
|
-
|
(2)
|
(5)
|
Net
foreign exchange adjustment
|
|
2
|
1
|
(34)
|
Share-based payment
costs
|
|
16
|
12
|
29
|
Pre-publication
|
|
(7)
|
(29)
|
(56)
|
Inventories
|
|
(4)
|
(1)
|
35
|
Trade
and other receivables
|
|
18
|
100
|
(1)
|
Trade
and other liabilities
|
|
(156)
|
(274)
|
(26)
|
Retirement benefit
obligations
|
|
3
|
4
|
(1)
|
Provisions for
other liabilities and charges
|
|
1
|
(21)
|
(37)
|
Net
cash generated from / (used in) operations
|
|
79
|
(117)
|
450
|
|
|
|
|
|
all figures in £ millions
|
note
|
2021
|
2020
|
2020
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Reconciliation
of net cash generated from / (used in) operations to closing net
debt
|
|
|
|
|
|
|
|
|
|
Net
cash generated from / (used in) operations
|
|
79
|
(117)
|
450
|
Dividends from
joint ventures and associates
|
|
-
|
3
|
4
|
Purchase of
PPE
|
|
(31)
|
(30)
|
(53)
|
Acquisition of new
right-of-use lease assets
|
|
(9)
|
(46)
|
(61)
|
Net
disposal of right-of-use lease assets including transfers to/from
investment in finance lease receivable
|
|
-
|
-
|
18
|
Purchase of
intangible assets
|
|
(39)
|
(48)
|
(81)
|
Costs
paid for major restructuring
|
|
10
|
24
|
38
|
Operating
cash flow
|
|
10
|
(214)
|
315
|
Operating tax
(paid) / received
|
|
(21)
|
16
|
(10)
|
Net
operating finance costs paid
|
|
(30)
|
(33)
|
(50)
|
Operating
free cash flow
|
|
(41)
|
(231)
|
255
|
Non-operating tax
(paid) / received
|
|
(100)
|
4
|
12
|
Cost
paid for major restructuring
|
|
(10)
|
(24)
|
(38)
|
Free
cash flow
|
|
(151)
|
(251)
|
229
|
Dividends paid
(including to non-controlling interest)
|
|
(102)
|
(101)
|
(147)
|
Net
movement of funds from operations
|
|
(253)
|
(352)
|
82
|
Acquisitions and
disposals
|
|
(19)
|
579
|
619
|
Disposal of lease
liabilities
|
|
67
|
-
|
-
|
Loans
repaid
|
|
-
|
49
|
48
|
New
equity
|
|
2
|
2
|
6
|
Buyback
of equity
|
|
-
|
(176)
|
(176)
|
Purchase of
treasury shares
|
|
(6)
|
-
|
(6)
|
Other
movements on financial instruments
|
|
22
|
(29)
|
(29)
|
Net
movement of funds
|
|
(187)
|
73
|
544
|
Exchange movements
on net debt
|
|
4
|
(39)
|
9
|
Movement
in net debt
|
|
(183)
|
34
|
553
|
Opening
net debt
|
|
(463)
|
(1,016)
|
(1,016)
|
Closing
net debt
|
15
|
(646)
|
(982)
|
(463)
|
|
PEARSON
plc
|
|
|
Date: 30
July
2021
|
|
|
By: /s/
NATALIE WHITE
|
|
|
|
------------------------------------
|
|
Natalie
White
|
|
Deputy
Company Secretary
|