31st
July 2023
|
Excellent H1 financial performance; full year Group financial
expectations reaffirmed
|
●
|
Underlying Group sales growth1 of
6%, excluding OPM2 and
the Strategic Review3
businesses with particularly strong performances in English
Language Learning and Assessment & Qualifications.
|
●
|
Underlying adjusted operating profit growth of 44% and strong
operating cash flow performance of £79m, reflecting strong
trading and benefits of the cost efficiency programme in H1, with
the remainder to be realised in H2.
|
●
|
Further portfolio reshaping with completion of the acquisition of
Personnel Decisions Research Institutes (PDRI) within our
Assessment & Qualifications division and the completion of the
disposal of Pearson Online Learning Services (POLS).
|
●
|
Good strategic progress, including ongoing execution of Artificial
Intelligence (AI) strategy.
|
●
|
Sales
increased 5% to £1,879m (H1 2022: £1,788m) reflecting
underlying performance, portfolio changes and currency
movements.
|
●
|
Statutory
operating profit of £219m (H1 2022: £148m) reflecting
underlying performance, portfolio changes and currency
movements.
|
●
|
Net
cash generated from operations was £106m (H1 2022:
£53m).
|
●
|
Statutory earnings per share of 26.1p (H1 2022:
18.1p5).
|
●
|
Assessment
& Qualifications sales were up 7% largely driven by a strong
performance in Pearson VUE underpinned by good growth in the IT and
healthcare segments, alongside the commencement of a number of new
contracts.
|
●
|
Virtual Learning sales decreased 15%, primarily due to an expected
69% decrease in the OPM business given the previously announced ASU
contract loss. Virtual Schools declined 2%, driven by enrolment
declines for the 2022/23 academic year and lower district
partnership renewals, which was offset by good retention rates and
the return of a school that had previously left.
|
●
|
Higher
Education sales were down 2%, in line with expectations, driven by
a decline in enrolments and loss of adoptions to non-mainstream
publishers. Pearson+ momentum continued, increasing c.200% in
cumulative paid subscriptions to 938k for the full academic year
(2022: 329k).
|
●
|
English
Language Learning sales increased 44% due to increased Pearson Test
of English (PTE) volumes, which were up 76%.
|
●
|
Workforce
Skills sales grew 9%, with good growth in both Vocational
Qualifications and Workforce Solutions.
|
●
|
Sales
in businesses under Strategic Review3
decreased 50% as expected.
|
●
|
Performance
driven by operating leverage on revenue growth and implementation
of the £120m cost efficiency programme for 2023, partially
offset by inflation. First half profit margin grew to 13% (H1 2022:
9%).
|
●
|
Headline
growth was 56% reflecting underlying performance, portfolio changes
and currency movements.
|
●
|
Adjusted
earnings per share grew to 25.6p (H1 2022: 22.5p) reflecting
adjusted operating profit
growth,
tax and interest returning to more normalised levels and the
reduction in issued shares given the 2022 share
buyback.
|
●
|
Operating
cash flow was £79m (H1 2022: £9m) with the significant
growth driven by the drop through of increased trading profits, and
in particular the cost efficiency programme, as well as strong
collections and portfolio changes.
|
|
●
|
Net
debt of £0.9bn (H1 2022: £0.8bn) increased due to
dividend payments, tax payments and the 2022 share buyback, more
than offsetting operating cash flows.
|
|
●
|
Proposed
interim dividend of 7.0p (H1 2022: 6.6p) represents an increase of
6%.
|
|
●
|
Previously
announced buyback to repurchase £300m of shares on track to
commence in Q3.
|
|
●
|
In
Assessment & Qualifications, Pearson VUE has launched the
delivery of the Next Generation NCLEX Nurse licensure exam in the
US and PDRI has launched a full suite of hiring assessment
programmes for the Transportation Security Administration (TSA). We
also continued to progress in our offering of onscreen exams within
our UK & International Qualifications business, with the roll
out of GCSE Computer Science and International GCSEs in English
Language and Literature.
|
●
|
In
Virtual Learning, we are launching a new Connections Academy Career
Pathways programme for middle and high school students from the
second half of the year, where we will be offering a tri-credit
approach to career-readiness courses in partnership with Coursera
and Acadeum, amongst others.
|
●
|
In
Higher Education, the re-organisation of our sales force has helped
to increase adoption retention rates and generate new wins. Our
work to converge our platforms, to enhance stability and to deliver
upgraded, best-in-class features to improve our customer experience
is progressing well. These initiatives
make the division much more commercial and competitive on a
day-to-day basis and we continue to develop new AI features,
some of which we will launch as early as this Fall back-to-school.
Uptake of our iLab products was also
encouraging in the Spring semester, where more than 1,900 virtual
labs were assigned across more than 600 courses through Mastering
Biology. Momentum continued for Pearson+ with a c.200% increase in
cumulative paid subscriptions to 938k for the full academic
year.
|
●
|
In
Workforce Skills, our Vocational Qualifications business
won three T level contracts in the UK.
We also signed a contract with the Jordanian Ministry of Education
to partner on the reform of Jordan’s technical and vocational
education and training provision in schools with over 50,000
learners expected to take these courses over the next three
years. Within our Workforce Solutions business we have built
a powerful technology stack that has enabled us to break down core
Faethm capabilities into modular application programming
interfaces, enabling use across Workforce Skills and other Pearson
products. Feedback from our customers
has resulted in us making the decision to focus our efforts on
delivering a modular, personalisable approach versus a fully
integrated platform.
|
●
|
In
English Language Learning, we recently won recognition for the
Pearson Test of English for Canadian Student Direct Stream and
economic migration visa applications. This grants access to the
full potential of the Canadian market at an opportune time, as
Immigration, Refugees and Citizenship Canada has recently announced
that it plans to welcome a record number of permanent residents in
the years ahead. The Canadian market is the largest of the three
key markets which Pearson has recognition to operate
in.
|
●
|
AI has been embedded into how Pearson operates, reflecting the
deployment of the technology across our product portfolio for many
years. For instance, there are AI-based open response assessments
within English Language Learning and large language models within
Workforce Skills which develop proprietary predictive algorithms
designed to assess trends in demand for skills and occupations
globally and recommend career and learning pathways for consumers,
enterprises and governments.
|
●
|
We have recently brought to market a generative AI tool within our
Pearson+ service which enables users to automatically summarise the
content of Channels videos into simple bullet points.
|
●
|
Additional generative AI study tools designed to help students
better learn and understand challenging subjects will launch in
Pearson+ and Mastering for this Fall back-to-school. These study
tools combine Pearson’s trusted content and structured
pedagogy with conversational AI capabilities to provide
personalised real time support for students in a secure Pearson
product environment, which is free from the noise and corruption of
web-based AI models. Further features are in development for the
2024 Fall back-to-school period and our products will continue to
evolve and grow over time to meet the needs of
students.
|
●
|
We are also exploring opportunities to consider how we can continue
to leverage innovative AI technology to drive further efficiency
and generate additional cost savings.
|
●
|
We
remain on track to achieve £120m of cost efficiencies in 2023,
having delivered a little under half in the first half of this
year.
|
●
|
We continue to expect margin improvement for the year from 12% in
2022 to mid-teens for 2023.
|
●
|
The
disposal of our POLS business is now complete, further focusing
Pearson’s portfolio towards future growth
opportunities.
|
|
●
|
We
completed the acquisition of PDRI, significantly expanding
Pearson’s services to the U.S. federal
government.
|
|
●
|
The
integration of Mondly continues to enhance our credentials in the
online language learning self-study space with paid subscriptions
standing at 473k at the end of the period, up 41%, with
particularly strong growth in our MondlyWorks
offering.
|
●
|
We are raising our revenue growth expectations in English Language
Learning from high single digit to c.20% for 2023 following strong
growth in the first half which we expect to normalise in H2. We are
investing a portion of the operating leverage on this improvement
to support future growth opportunities.
|
●
|
In
Workforce Skills, given our focus on delivering modular solutions,
our 2023 and 2022 to 2025 growth expectations for this division are
likely to be more stretching.
|
●
|
Continued
growth in Pearson+ subscriptions will lead to a shift in Higher
Education revenue recognition from Q3 to Q4.
|
●
|
Contract
timing in Assessment & Qualifications will see delivery in
earlier quarters meaning Q4 growth will be lower than average. We
are confident in achieving our full year revenue growth
expectations.
|
●
|
In
Virtual Learning the termination of the ASU contract will continue
to impact growth in H2.
|
●
|
Revenue
growth expectations for Virtual Schools remain unchanged with H2
enrolments impacted by the loss of a previously cited large school
contract.
|
£m
|
H1 2023
|
H1
2022
|
Headline
growth
|
CER
growth1
|
Underlying
growth1
|
Business performance
|
|
|
|
|
|
Sales
|
1,879
|
1,788
|
5%
|
2%
|
4%
|
Adjusted
operating profit
|
250
|
160
|
56%
|
48%
|
44%
|
Operating
cash flow
|
79
|
9
|
|
|
|
Adjusted
earnings per share
|
25.6p
|
22.5p
|
|
|
|
Statutory results
|
|
|
|
|
|
Sales
|
1,879
|
1,788
|
|
|
|
Operating
profit
|
219
|
148
|
|
|
|
Net
cash generated from operations
|
106
|
53
|
|
|
|
Basic
earnings per share
|
26.1p
|
18.1p5
|
|
|
|
Dividend
per share
|
7.0p
|
6.6p
|
|
|
|
Net
debt
|
(911)
|
(810)
|
|
|
|
|
Investor Relations
|
Jo
Russell
James
Caddy
|
+44
(0) 7785 451 266
+44
(0) 7825 948 218
|
|
Gemma
Terry
Brennan
Matthews
|
+44
(0) 7841 363 216
+1
(332) 238-8785
|
Teneo
|
Charles
Armitstead
|
+44
(0) 7703 330 269
|
Results event
|
Pearson’s
interim results presentation today at 09:30 (BST). Register to
receive log in details: https://pearson.connectid.cloud/register
|
|
KPI
|
Objective
|
KPI Measure
|
H1 2023
|
H1 2022
|
Digital Growth
|
Drive
digital revenue growth
|
OnVUE
volumes
|
1.7m
|
1.4m
|
Higher
Education US digital registrations
|
4.5m
|
4.6m*
|
||
PTE
volume
|
606k
|
344k
|
||
Consumer Engagement
|
Create
engaging and personalised consumer experiences
|
NPS for
Connections Academy
|
+67
|
+67
|
NPS for
PTE
|
+56
|
+51
|
||
Pearson+
registered users
|
4.7m
|
4.5m
|
||
Mondly
paid subscriptions
|
473k
|
336k
|
||
Workforce
Skills registered users
|
5.3m
|
4.1m
|
||
Product Effectiveness
|
Improve
the effectiveness of our products to deliver better
outcomes
|
PTE
speed of score return
|
1.1
days
|
1.3
days
|
VUE
test volumes
|
12.2m
|
10.0m
|
||
Workforce
Skills number of enterprise customers
|
1,556
|
1,387
|
||
Higher
Education product usage – text units
|
2.0m
|
2.1m
|
£m
|
H1 2023
|
H1
2022
|
Headline
growth
|
CER
Growth1
|
Underlying
growth1
|
Sales
|
|
|
|
|
|
Assessment
& Qualifications
|
796
|
7106
|
12%
|
8%
|
7%
|
Virtual
Learning
|
373
|
390
|
(4)%
|
(9)%
|
(15)%
|
Higher
Education
|
379
|
373
|
2%
|
(2)%
|
(2)%
|
English
Language Learning
|
184
|
122
|
51%
|
50%
|
44%
|
Workforce
Skills
|
140
|
127
|
10%
|
9%
|
9%
|
Strategic
review3
|
7
|
666
|
(89)%
|
(89)%
|
(50)%
|
Total
|
1,879
|
1,788
|
5%
|
2%
|
4%
|
Total, excluding OPM2 and
Strategic Review3
|
|
|
|
|
6%
|
|
|
|
|
|
|
Adjusted operating profit/loss
|
|
|
|
|
|
Assessment
& Qualifications
|
174
|
1366
|
28%
|
21%
|
20%
|
Virtual
Learning
|
47
|
14
|
236%
|
207%
|
72%
|
Higher
Education
|
(1)
|
(4)
|
75%
|
25%
|
25%
|
English
Language Learning
|
8
|
(4)
|
300%
|
300%
|
275%
|
Workforce
Skills
|
21
|
28
|
(25)%
|
(21)%
|
(20)%
|
Strategic
review3
|
1
|
(10)6
|
110%
|
110%
|
100%
|
Total
|
250
|
160
|
56%
|
48%
|
44%
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Operating
profit
|
|
219
|
148
|
271
|
Add
back: Cost of major restructuring
|
|
-
|
-
|
150
|
Add
back: Intangible charges
|
|
24
|
26
|
56
|
Add
back: UK pension discretionary increase
|
|
-
|
-
|
3
|
Add
back: Other net gains and losses
|
|
7
|
(14)
|
(24)
|
Adjusted
operating profit
|
|
250
|
160
|
456
|
|
|
|
|
|
all figures in £ millions
|
note
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
Sales
|
2
|
1,879
|
1,788
|
3,841
|
Cost of
goods sold
|
|
(960)
|
(963)
|
(2,046)
|
Gross
profit
|
|
919
|
825
|
1,795
|
|
|
|
|
|
Operating
expenses
|
|
(688)
|
(690)
|
(1,549)
|
Other
net gains and losses
|
2
|
(7)
|
14
|
24
|
Share
of results of joint ventures and associates
|
|
(5)
|
(1)
|
1
|
Operating
profit
|
2
|
219
|
148
|
271
|
|
|
|
|
|
Finance
costs
|
3
|
(36)
|
(8)
|
(71)
|
Finance
income
|
3
|
53
|
45
|
123
|
Profit
before tax
|
4
|
236
|
185
|
323
|
Income
tax
|
5
|
(49)
|
(49)
|
(79)
|
Profit
for the period
|
|
187
|
136
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the company
|
|
186
|
136
|
242
|
Non-controlling
interest
|
|
1
|
-
|
2
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations (in pence per share)
|
|
|
|
|
Basic
|
6
|
26.1p
|
18.1p
|
32.8p
|
Diluted
|
6
|
25.9p
|
18.1p
|
32.6p
|
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Profit
for the period
|
|
187
|
136
|
244
|
|
|
|
|
|
Items
that may be reclassified to the income statement
|
|
|
|
|
Net
exchange differences on translation of foreign
operations
|
|
(166)
|
334
|
330
|
Currency
translation adjustment on disposals
|
|
(122)
|
(7)
|
(5)
|
Attributable
tax
|
|
1
|
-
|
4
|
|
|
|
|
|
Items
that are not reclassified to the income statement
|
|
|
|
|
Fair
value gain on other financial assets
|
|
2
|
19
|
18
|
Attributable
tax
|
|
-
|
-
|
1
|
|
|
|
|
|
Remeasurement of
retirement benefit obligations
|
|
(27)
|
121
|
54
|
Attributable
tax
|
|
7
|
(30)
|
(12)
|
Other
comprehensive (expense) / income
|
|
(305)
|
437
|
390
|
Total
comprehensive (expense) / income
|
|
(118)
|
573
|
634
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the company
|
|
(118)
|
572
|
630
|
Non-controlling
interest
|
|
-
|
1
|
4
|
|
|
|
|
|
all figures in £ millions
|
note
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Property, plant and
equipment
|
|
226
|
292
|
250
|
Investment
property
|
|
60
|
72
|
60
|
Intangible
assets
|
10
|
3,126
|
3,214
|
3,177
|
Investments in
joint ventures and associates
|
|
17
|
24
|
25
|
Deferred income tax
assets
|
|
27
|
41
|
57
|
Financial assets
– derivative financial instruments
|
|
41
|
33
|
43
|
Retirement benefit
assets
|
|
554
|
652
|
581
|
Other financial
assets
|
|
138
|
120
|
133
|
Income tax
assets
|
|
41
|
41
|
41
|
Trade and other
receivables
|
|
138
|
143
|
139
|
Non-current
assets
|
|
4,368
|
4,632
|
4,506
|
|
|
|
|
|
Intangible assets
– product development
|
|
947
|
932
|
975
|
Inventories
|
|
110
|
103
|
105
|
Trade and other
receivables
|
|
1,060
|
1,207
|
1,139
|
Financial assets
– derivative financial instruments
|
|
17
|
1
|
16
|
Current income tax
assets
|
|
10
|
2
|
9
|
Cash and cash
equivalents (excluding overdrafts)
|
|
355
|
392
|
558
|
Current
assets
|
|
2,499
|
2,637
|
2,802
|
|
|
|
|
|
Assets classified
as held for sale
|
13
|
15
|
201
|
16
|
Total
assets
|
|
6,882
|
7,470
|
7,324
|
|
|
|
|
|
Financial
liabilities – borrowings
|
|
(1,308)
|
(1,151)
|
(1,144)
|
Financial
liabilities – derivative financial instruments
|
|
(43)
|
(44)
|
(54)
|
Deferred income tax
liabilities
|
|
(31)
|
(96)
|
(37)
|
Retirement benefit
obligations
|
|
(54)
|
(61)
|
(61)
|
Provisions for
other liabilities and charges
|
|
(14)
|
(9)
|
(14)
|
Other
liabilities
|
|
(80)
|
(123)
|
(120)
|
Non-current
liabilities
|
|
(1,530)
|
(1,484)
|
(1,430)
|
|
|
|
|
|
Trade and other
liabilities
|
|
(1,020)
|
(1,234)
|
(1,254)
|
Financial
liabilities – borrowings
|
|
(75)
|
(150)
|
(86)
|
Financial
liabilities – derivative financial instruments
|
|
(5)
|
(10)
|
(11)
|
Current income tax
liabilities
|
|
(27)
|
(30)
|
(43)
|
Provisions for
other liabilities and charges
|
|
(37)
|
(28)
|
(85)
|
Current
liabilities
|
|
(1,164)
|
(1,452)
|
(1,479)
|
|
|
|
|
|
Liabilities
classified as held for sale
|
13
|
-
|
(42)
|
-
|
Total
liabilities
|
|
(2,694)
|
(2,978)
|
(2,909)
|
|
|
|
|
|
Net
assets
|
|
4,188
|
4,492
|
4,415
|
|
|
|
|
|
Share
capital
|
|
179
|
185
|
179
|
Share
premium
|
|
2,635
|
2,628
|
2,633
|
Treasury
shares
|
|
(20)
|
(22)
|
(15)
|
Reserves
|
|
1,381
|
1,690
|
1,605
|
Total equity
attributable to equity holders of the company
|
|
4,175
|
4,481
|
4,402
|
Non-controlling
interest
|
|
13
|
11
|
13
|
Total
equity
|
|
4,188
|
4,492
|
4,415
|
|
|
|
|
|||||||
|
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
|
|
|
|
|
|
|
|
|
|
|
|
2023
half year
|
||||||||||
At
1 January 2023
|
179
|
2,633
|
(15)
|
28
|
(13)
|
709
|
881
|
4,402
|
13
|
4,415
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
186
|
186
|
1
|
187
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
2
|
(287)
|
(19)
|
(304)
|
(1)
|
(305)
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
2
|
(287)
|
167
|
(118)
|
-
|
(118)
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
20
|
20
|
-
|
20
|
Issue
of ordinary shares
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
2
|
Buyback
of equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Purchase of
treasury shares
|
-
|
-
|
(25)
|
-
|
-
|
-
|
-
|
(25)
|
-
|
(25)
|
Release
of treasury shares
|
-
|
-
|
20
|
-
|
-
|
-
|
(20)
|
-
|
-
|
-
|
Transfer of gain on
disposal of FVOCI investment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(106)
|
(106)
|
-
|
(106)
|
At
30 June 2023
|
179
|
2,635
|
(20)
|
28
|
(11)
|
422
|
942
|
4,175
|
13
|
4,188
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
all figures in £ millions
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve1
|
Translation
reserve
|
Retained
earnings1
|
Total
|
Non-controlling
interest
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
2022
half year
|
||||||||||
At 1
January 2022
|
189
|
2,626
|
(12)
|
18
|
(4)
|
386
|
1,067
|
4,270
|
10
|
4,280
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
136
|
136
|
-
|
136
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
19
|
326
|
91
|
436
|
1
|
437
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
19
|
326
|
227
|
572
|
1
|
573
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
18
|
18
|
-
|
18
|
Issue
of ordinary shares
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
2
|
Buyback
of equity
|
(4)
|
-
|
-
|
4
|
-
|
-
|
(250)
|
(250)
|
-
|
(250)
|
Purchase of
treasury shares
|
-
|
-
|
(24)
|
-
|
-
|
-
|
-
|
(24)
|
-
|
(24)
|
Release
of treasury shares
|
-
|
-
|
14
|
-
|
-
|
-
|
(14)
|
-
|
-
|
-
|
Transfer of gain on
disposal of FVOCI investment
|
-
|
-
|
-
|
-
|
(27)
|
-
|
27
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(107)
|
(107)
|
-
|
(107)
|
At 30
June 2022
|
185
|
2,628
|
(22)
|
22
|
(12)
|
712
|
968
|
4,481
|
11
|
4,492
|
|
|
|
|
|||||||
|
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
|
|
|
|
|
|
|
|
|
|
|
|
2022
full year
|
||||||||||
At 1
January 2022
|
189
|
2,626
|
(12)
|
18
|
(4)
|
386
|
1,067
|
4,270
|
10
|
4,280
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
242
|
242
|
2
|
244
|
Other
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
18
|
323
|
47
|
388
|
2
|
390
|
Total
comprehensive income / (expense)
|
-
|
-
|
-
|
-
|
18
|
323
|
289
|
630
|
4
|
634
|
Equity-settled
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
38
|
38
|
-
|
38
|
Tax on
equity-settled transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
3
|
3
|
-
|
3
|
Issue
of ordinary shares
|
-
|
7
|
-
|
-
|
-
|
-
|
-
|
7
|
-
|
7
|
Buyback
of equity
|
(10)
|
-
|
-
|
10
|
-
|
-
|
(353)
|
(353)
|
-
|
(353)
|
Purchase of
treasury shares
|
-
|
-
|
(37)
|
-
|
-
|
-
|
-
|
(37)
|
-
|
(37)
|
Release
of treasury shares
|
-
|
-
|
34
|
-
|
-
|
-
|
(34)
|
-
|
-
|
-
|
Transfer of gain on
disposal of FVOCI investment
|
-
|
-
|
-
|
-
|
(27)
|
-
|
27
|
-
|
-
|
-
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(156)
|
(156)
|
(1)
|
(157)
|
At 31
December 2022
|
179
|
2,633
|
(15)
|
28
|
(13)
|
709
|
881
|
4,402
|
13
|
4,415
|
|
|
|
|
|
all figures in £ millions
|
note
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Cash
flows from operating activities
|
|
|
|
|
Profit
before tax1
|
|
236
|
185
|
323
|
Net
finance costs1
|
|
(17)
|
(37)
|
(52)
|
Depreciation and
impairment – PPE & investment property
|
|
38
|
42
|
136
|
Amortisation and
impairment – software
|
|
64
|
60
|
125
|
Amortisation and
impairment – acquired intangible assets
|
|
24
|
26
|
54
|
Other
net gains and losses
|
|
7
|
(14)
|
(24)
|
Product
development capital expenditure
|
|
(144)
|
(151)
|
(357)
|
Product
development amortisation
|
|
137
|
136
|
303
|
Share-based payment
costs
|
|
19
|
18
|
35
|
Change
in inventories
|
|
(9)
|
(34)
|
(34)
|
Change
in trade and other receivables
|
|
(20)
|
14
|
33
|
Change
in trade and other liabilities
|
|
(187)
|
(197)
|
(84)
|
Change
in provisions for other liabilities and charges
|
|
(45)
|
(11)
|
50
|
Other
movements
|
|
3
|
16
|
19
|
Net
cash generated from operations
|
|
106
|
53
|
527
|
Interest
paid
|
|
(34)
|
(35)
|
(57)
|
Tax
paid
|
|
(59)
|
(51)
|
(109)
|
Net
cash generated from / (used in) operating activities
|
|
13
|
(33)
|
361
|
Cash
flows from investing activities
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
11
|
(173)
|
(221)
|
(228)
|
Acquisition of
joint ventures and associates
|
|
(5)
|
(4)
|
(5)
|
Purchase of
investments
|
|
(6)
|
(4)
|
(12)
|
Purchase of
property, plant and equipment
|
|
(16)
|
(21)
|
(57)
|
Purchase of
intangible assets
|
|
(47)
|
(46)
|
(90)
|
Disposal of
subsidiaries, net of cash disposed
|
12
|
(19)
|
108
|
333
|
Proceeds from sale
of investments
|
|
3
|
-
|
17
|
Proceeds from sale
of property, plant and equipment
|
|
1
|
14
|
14
|
Lease
receivables repaid including disposals
|
|
8
|
9
|
18
|
Interest
received
|
|
10
|
11
|
22
|
Dividends received
from joint ventures and associates
|
|
-
|
2
|
1
|
Net
cash (used in) / generated from investing activities
|
|
(244)
|
(152)
|
13
|
Cash
flows from financing activities
|
|
|
|
|
Proceeds from issue
of ordinary shares
|
|
2
|
2
|
7
|
Buyback
of equity
|
|
-
|
(141)
|
(353)
|
Purchase of
treasury shares
|
|
(25)
|
(24)
|
(37)
|
Repayment of
borrowings
|
|
-
|
(95)
|
(171)
|
Proceeds from
borrowings
|
|
220
|
-
|
-
|
Repayment of lease
liabilities
|
|
(42)
|
(48)
|
(93)
|
Dividends paid to
company’s shareholders
|
|
(106)
|
(107)
|
(156)
|
Dividends paid to
non-controlling interest
|
|
-
|
-
|
(1)
|
Net
cash generated from / (used in) financing activities
|
|
49
|
(413)
|
(804)
|
Effects
of exchange rate changes on cash and cash equivalents
|
|
(13)
|
53
|
36
|
Net
decrease in cash and cash equivalents
|
|
(195)
|
(545)
|
(394)
|
Cash
and cash equivalents at beginning of period
|
|
543
|
937
|
937
|
Cash
and cash equivalents at end of period
|
|
348
|
392
|
543
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Sales
|
|
|
|
|
Assessment &
Qualifications
|
|
796
|
710
|
1,444
|
Virtual
Learning
|
|
373
|
390
|
820
|
English
Language Learning
|
|
184
|
122
|
321
|
Workforce
Skills
|
|
140
|
127
|
204
|
Higher
Education
|
|
379
|
373
|
898
|
Strategic
Review
|
|
7
|
66
|
154
|
Total
sales
|
|
1,879
|
1,788
|
3,841
|
|
|
|
|
|
Adjusted
operating profit
|
|
|
|
|
Assessment &
Qualifications
|
|
174
|
136
|
258
|
Virtual
Learning
|
|
47
|
14
|
70
|
English
Language Learning
|
|
8
|
(4)
|
25
|
Workforce
Skills
|
|
21
|
28
|
(3)
|
Higher
Education
|
|
(1)
|
(4)
|
91
|
Strategic
Review
|
|
1
|
(10)
|
15
|
Total
adjusted operating profit
|
250
|
160
|
456
|
all figures in £ millions
|
Assessment &
Qualifications
|
Virtual
Learning
|
English
Language Learning
|
Workforce
Skills
|
Higher
Education
|
Strategic
Review
|
Total
|
|||||||
|
|
|
|
|
|
|
|
|||||||
|
|
2023
half year
|
||||||||||||
Courseware
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
30
|
-
|
51
|
1
|
108
|
7
|
197
|
|||||||
Products and
services transferred over time
|
10
|
-
|
5
|
-
|
268
|
-
|
283
|
|||||||
|
40
|
-
|
56
|
1
|
376
|
7
|
480
|
|||||||
Assessments
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
96
|
-
|
3
|
11
|
-
|
-
|
110
|
|||||||
Products and
services transferred over time
|
660
|
-
|
103
|
105
|
-
|
-
|
868
|
|||||||
|
756
|
-
|
106
|
116
|
-
|
-
|
978
|
|||||||
Services
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
-
|
-
|
11
|
-
|
-
|
-
|
11
|
|||||||
Products and
services transferred over time
|
-
|
373
|
11
|
23
|
3
|
-
|
410
|
|||||||
|
-
|
373
|
22
|
23
|
3
|
-
|
421
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Total
sales
|
796
|
373
|
184
|
140
|
379
|
7
|
1,879
|
|||||||
|
|
|
|
|
|
|
|
|||||||
|
|
2022
half year
|
||||||||||||
Courseware
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
27
|
-
|
41
|
1
|
92
|
60
|
221
|
|||||||
Products and
services transferred over time
|
14
|
-
|
8
|
-
|
278
|
3
|
303
|
|||||||
|
41
|
-
|
49
|
1
|
370
|
63
|
524
|
|||||||
Assessments
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
80
|
-
|
4
|
10
|
-
|
-
|
94
|
|||||||
Products and
services transferred over time
|
589
|
-
|
55
|
94
|
-
|
-
|
738
|
|||||||
|
669
|
-
|
59
|
104
|
-
|
-
|
832
|
|||||||
Services
|
|
|
|
|
|
|
|
|||||||
Products
transferred at a point in time
|
-
|
-
|
10
|
-
|
-
|
-
|
10
|
|||||||
Products and
services transferred over time
|
-
|
390
|
4
|
22
|
3
|
3
|
422
|
|||||||
|
-
|
390
|
14
|
22
|
3
|
3
|
432
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Total
sales
|
710
|
390
|
122
|
127
|
373
|
66
|
1,788
|
all figures in £ millions
|
Assessment &
Qualifications
|
Virtual
Learning
|
English
Language Learning
|
Workforce
Skills
|
Higher
Education
|
Strategic
Review
|
Total
|
||
|
|
|
|
|
|
|
|
||
|
|
2022
full year
|
|||||||
Courseware
|
|
|
|
|
|
|
|
||
Products
transferred at a point in time
|
64
|
-
|
110
|
2
|
302
|
148
|
626
|
||
Products and
services transferred over time
|
21
|
-
|
25
|
-
|
588
|
6
|
640
|
||
|
85
|
-
|
135
|
2
|
890
|
154
|
1,266
|
||
Assessments
|
|
|
|
|
|
|
|
||
Products
transferred at a point in time
|
169
|
-
|
5
|
14
|
-
|
-
|
188
|
||
Products and
services transferred over time
|
1,190
|
-
|
138
|
142
|
-
|
-
|
1,470
|
||
|
1,359
|
-
|
143
|
156
|
-
|
-
|
1,658
|
||
Services
|
|
|
|
|
|
|
|
||
Products
transferred at a point in time
|
-
|
-
|
29
|
-
|
-
|
-
|
29
|
||
Products and
services transferred over time
|
-
|
820
|
14
|
46
|
8
|
-
|
888
|
||
|
-
|
820
|
43
|
46
|
8
|
-
|
917
|
||
|
|
|
|
|
|
|
|
||
Total
sales
|
1,444
|
820
|
321
|
204
|
898
|
154
|
3,841
|
all figures in £ millions
|
Assessment &
Qualifications
|
Virtual
Learning
|
English
Language Learning
|
Workforce
Skills
|
Higher
Education
|
Strategic
Review
|
Total
|
2023
half year
|
|||||||
Adjusted operating
profit / (loss)
|
174
|
47
|
8
|
21
|
(1)
|
1
|
250
|
Cost of
major restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Intangible
charges
|
(6)
|
(6)
|
(5)
|
(5)
|
(2)
|
-
|
(24)
|
UK
Pension discretionary increases
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
net gains and losses
|
(1)
|
17
|
5
|
(17)
|
-
|
(11)
|
(7)
|
Operating
profit / (loss)
|
167
|
58
|
8
|
(1)
|
(3)
|
(10)
|
219
|
2022
half year
|
|||||||
Adjusted operating
profit / (loss)
|
136
|
14
|
(4)
|
28
|
(4)
|
(10)
|
160
|
Cost of
major restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Intangible
charges
|
(7)
|
(10)
|
(2)
|
(5)
|
(2)
|
-
|
(26)
|
UK
Pension discretionary increases
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
net gains and losses
|
-
|
-
|
(3)
|
4
|
-
|
13
|
14
|
Operating
profit / (loss)
|
129
|
4
|
(9)
|
27
|
(6)
|
3
|
148
|
2022
full year
|
|||||||
Adjusted operating
profit / (loss)
|
258
|
70
|
25
|
(3)
|
91
|
15
|
456
|
Cost of
major restructuring
|
(39)
|
(29)
|
(11)
|
(7)
|
(63)
|
(1)
|
(150)
|
Intangible
charges
|
(14)
|
(21)
|
(6)
|
(12)
|
(3)
|
-
|
(56)
|
UK
Pension discretionary increases
|
(1)
|
(1)
|
-
|
-
|
(1)
|
-
|
(3)
|
Other
net gains and losses
|
(2)
|
(2)
|
(11)
|
-
|
-
|
39
|
24
|
Operating
profit / (loss)
|
202
|
17
|
(3)
|
(22)
|
24
|
53
|
271
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Net
finance income
|
|
17
|
37
|
52
|
Net
finance income in respect of retirement benefits
|
|
(13)
|
(4)
|
(9)
|
Interest on
deferred and contingent consideration
|
|
2
|
1
|
5
|
Fair
value movements on investments held at FVTPL
|
|
(5)
|
(6)
|
(28)
|
Net
foreign exchange gains
|
|
(4)
|
(1)
|
(1)
|
Derivatives not in
a hedge relationship
|
|
(9)
|
(14)
|
(25)
|
Interest on tax
provisions
|
|
-
|
5
|
5
|
Net
interest (payable) / receivable reflected in adjusted
earnings
|
|
(12)
|
18
|
(1)
|
|
|
|
|
|
Analysed
as:
|
|
|
|
|
Finance
costs
|
|
(36)
|
(8)
|
(71)
|
Finance
income
|
|
53
|
45
|
123
|
Net
finance income
|
|
17
|
37
|
52
|
|
|
|
|
|
all figures in £ millions
|
note
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Profit
before tax
|
|
236
|
185
|
323
|
Cost of
major restructuring
|
2
|
-
|
-
|
150
|
Other
net gains and losses
|
2
|
7
|
(14)
|
(24)
|
Intangible
charges
|
2
|
24
|
26
|
56
|
UK
Pensions discretionary increases
|
2
|
-
|
-
|
3
|
Other
net finance income
|
3
|
(29)
|
(19)
|
(53)
|
Adjusted
profit before tax
|
|
238
|
178
|
455
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Income
tax charge
|
|
(49)
|
(49)
|
(79)
|
Tax
benefit on cost of major restructuring
|
|
-
|
-
|
(37)
|
Tax
charge / (benefit) on other net gains and losses
|
|
(8)
|
34
|
10
|
Tax
benefit on intangible charges
|
|
(6)
|
(6)
|
(11)
|
Tax
benefit on UK Pensions discretionary increases
|
|
-
|
-
|
(1)
|
Tax
charge on other net finance income
|
|
7
|
4
|
13
|
Tax
amortisation benefit on goodwill and intangibles
|
|
2
|
7
|
16
|
Tax
charge / (benefit) on UK tax rate change
|
|
-
|
1
|
(1)
|
Other
tax items
|
|
-
|
-
|
19
|
Adjusted
income tax charge
|
|
(54)
|
(9)
|
(71)
|
|
|
|
|
|
Tax
rate reflected in statutory earnings
|
|
20.8%
|
26.5%
|
24.5%
|
Tax
rate reflected in adjusted earnings
|
|
22.7%
|
5.1%
|
15.6%
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
Earnings for the
period
|
|
187
|
136
|
244
|
Non-controlling
interest
|
|
(1)
|
-
|
(2)
|
Earnings
attributable to equity shareholders
|
|
186
|
136
|
242
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (millions)
|
|
714.0
|
750.3
|
738.1
|
Effect
of dilutive share options (millions)
|
|
5.0
|
2.6
|
3.9
|
Weighted average
number of shares (millions) for diluted earnings
|
|
719.0
|
752.9
|
742.0
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
Basic
|
|
26.1p
|
18.1p
|
32.8p
|
Diluted
|
|
25.9p
|
18.1p
|
32.6p
|
|
|
|
|
|
|
|
|
|
|
|
||
all figures in £ millions
|
note
|
Statutory
income statement
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
UK
Pension discretionary increases
|
Other
net finance costs
|
Other
tax items
|
|
Adjusted
income statement
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2023 half year
|
||||||||||
Operating
profit / (loss)
|
2
|
219
|
-
|
7
|
24
|
-
|
-
|
-
|
|
250
|
||
Net
finance income / (costs)
|
3
|
17
|
-
|
-
|
-
|
-
|
(29)
|
-
|
|
(12)
|
||
Profit
/ (loss) before tax
|
4
|
236
|
-
|
7
|
24
|
-
|
(29)
|
-
|
|
238
|
||
Income
tax
|
5
|
(49)
|
-
|
(8)
|
(6)
|
-
|
7
|
2
|
|
(54)
|
||
Profit
/ (loss) for the year
|
|
187
|
-
|
(1)
|
18
|
-
|
(22)
|
2
|
|
184
|
||
Non-controlling
interest
|
|
(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
(1)
|
||
Earnings
/ (loss)
|
|
186
|
-
|
(1)
|
18
|
-
|
(22)
|
2
|
|
183
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average number of shares (millions)
|
|
|
|
|
714.0
|
|||||||
Weighted average number of shares (millions) for diluted
earnings
|
|
|
|
|
719.0
|
|||||||
|
|
|
|
|
|
|||||||
Adjusted earnings per share (basic)
|
|
|
|
|
25.6p
|
|||||||
Adjusted earnings per share (diluted)
|
|
|
|
|
25.5p
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
all figures in £ millions
|
note
|
Statutory
income statement1
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
UK
Pension discretionary increases
|
Other
net finance costs1
|
Other
tax items
|
|
Adjusted
income statement
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
2022
half year
|
|||||||||||||||||||
Operating
profit / (loss)
|
2
|
148
|
-
|
(14)
|
26
|
-
|
-
|
-
|
|
160
|
|||||||||||
Net
finance costs
|
4
|
37
|
-
|
-
|
-
|
-
|
(19)
|
-
|
|
18
|
|||||||||||
Profit
/ (loss) before tax
|
5
|
185
|
-
|
(14)
|
26
|
-
|
(19)
|
-
|
|
178
|
|||||||||||
Income
tax
|
6
|
(49)
|
-
|
34
|
(6)
|
-
|
4
|
8
|
|
(9)
|
|||||||||||
Profit
/ (loss) for the year
|
|
136
|
-
|
20
|
20
|
-
|
(15)
|
8
|
|
169
|
|||||||||||
Non-controlling
interest
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|||||||||||
Earnings
/ (loss)
|
|
136
|
-
|
20
|
20
|
-
|
(15)
|
8
|
|
169
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted
average number of shares (millions)
|
|
|
|
750.3
|
|||||||||||||||||
Weighted
average number of shares (millions) for diluted
earnings
|
|
|
|
752.9
|
|||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Adjusted
earnings per share (basic)
|
|
|
|
22.5p
|
|||||||||||||||||
Adjusted
earnings per share (diluted)
|
|
|
|
22.4p
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
all figures in £ millions
|
note
|
Statutory
income statement
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
UK
Pension discretionary increases
|
Other
net finance costs
|
Other
tax items
|
|
Adjusted
income statement
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
2022
full year
|
||||||||||||||||||||
Operating
profit / (loss)
|
2
|
271
|
150
|
(24)
|
56
|
3
|
-
|
-
|
|
456
|
||||||||||||
Net
finance costs
|
4
|
52
|
-
|
-
|
-
|
-
|
(53)
|
-
|
|
(1)
|
||||||||||||
Profit
/ (loss) before tax
|
5
|
323
|
150
|
(24)
|
56
|
3
|
(53)
|
-
|
|
455
|
||||||||||||
Income
tax
|
6
|
(79)
|
(37)
|
10
|
(11)
|
(1)
|
13
|
34
|
|
(71)
|
||||||||||||
Profit
/ (loss) for the year
|
|
244
|
113
|
(14)
|
45
|
2
|
(40)
|
34
|
|
384
|
||||||||||||
Non-controlling
interest
|
|
(2)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
(2)
|
||||||||||||
Earnings
/ (loss)
|
|
242
|
113
|
(14)
|
45
|
2
|
(40)
|
34
|
|
382
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted
average number of shares (millions)
|
|
|
|
738.1
|
||||||||||||||||||
Weighted
average number of shares (millions) for diluted
earnings
|
|
|
|
742.0
|
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Adjusted
earnings per share (basic)
|
|
|
|
51.8p
|
||||||||||||||||||
Adjusted
earnings per share (diluted)
|
|
|
|
51.5p
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Amounts
recognised as distributions to equity shareholders in the
period
|
|
106
|
107
|
156
|
|
|
|
|
|
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Average
rate for profits
|
|
1.24
|
1.30
|
1.24
|
Period
end rate
|
|
1.27
|
1.21
|
1.21
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Goodwill
|
|
2,441
|
2,470
|
2,480
|
Other
intangibles
|
|
685
|
744
|
697
|
Non-current
intangible assets
|
|
3,126
|
3,214
|
3,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
all figures in £ millions
|
|
|
|
|
2023
|
2022
|
2022
|
|
|
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
|
|
|
Intangible
assets
|
|
|
|
|
117
|
109
|
110
|
Deferred tax
assets
|
|
|
|
|
-
|
8
|
8
|
Trade and other
receivables
|
|
|
|
|
8
|
9
|
8
|
Cash and cash
equivalents
|
|
|
|
|
4
|
13
|
13
|
Trade and other
liabilities
|
|
|
|
|
(7)
|
(26)
|
(26)
|
Deferred tax
liabilities
|
|
|
|
|
(31)
|
(22)
|
(22)
|
Net
assets acquired
|
|
|
|
|
91
|
91
|
91
|
Goodwill
|
|
|
|
|
61
|
204
|
204
|
Total
|
|
|
|
|
152
|
295
|
295
|
|
|
|
|
|
|
|
|
Satisfied
by:
|
|
|
|
|
|
|
|
Cash
consideration
|
|
|
|
|
152
|
223
|
223
|
Deferred and
contingent consideration
|
|
|
|
|
-
|
41
|
41
|
Fair value of
existing investment
|
|
|
|
|
-
|
31
|
31
|
Total
consideration
|
|
|
|
|
152
|
295
|
295
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Cash –
current year acquisitions
|
|
(152)
|
(223)
|
(223)
|
Cash and cash
equivalents acquired
|
|
4
|
13
|
13
|
Deferred payments
for prior year acquisitions
|
|
(21)
|
(7)
|
(10)
|
Acquisition costs
paid
|
|
(4)
|
(4)
|
(8)
|
Net
cash outflow on acquisitions
|
|
(173)
|
(221)
|
(228)
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Intangible
assets
|
|
(53)
|
(1)
|
(77)
|
Property, plant and
equipment
|
|
(5)
|
-
|
(11)
|
Intangible assets
– product development
|
|
(15)
|
(9)
|
(39)
|
Inventories
|
|
(1)
|
(7)
|
(33)
|
Trade
and other receivables
|
|
(63)
|
(5)
|
(106)
|
Deferred
tax
|
|
8
|
-
|
(12)
|
Current
tax (receivable) / payable
|
|
(2)
|
-
|
7
|
Cash
and cash equivalents (excluding overdrafts)
|
|
(12)
|
(3)
|
(21)
|
Provisions for
other liabilities and charges
|
|
-
|
-
|
1
|
Retirement benefit
obligations
|
|
-
|
-
|
2
|
Trade
and other liabilities
|
|
26
|
6
|
45
|
Financial
liabilities - borrowings
|
|
-
|
-
|
8
|
Net
assets disposed
|
|
(117)
|
(19)
|
(236)
|
|
|
|
|
|
Cumulative
translation adjustment
|
|
122
|
7
|
5
|
Cash
proceeds
|
|
1
|
38
|
291
|
Deferred
proceeds
|
|
12
|
-
|
2
|
Costs
of disposal
|
|
(16)
|
(13)
|
(25)
|
Gains
on disposal
|
|
2
|
13
|
37
|
The net
cash outflow relating to disposals in the period is shown in the
table below.
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Proceeds –
current year disposals
|
|
1
|
38
|
291
|
Proceeds –
prior year disposals
|
|
-
|
87
|
86
|
Cash and cash
equivalents disposed
|
|
(12)
|
(3)
|
(21)
|
Costs and other
disposal liabilities paid
|
|
(8)
|
(14)
|
(23)
|
Net
cash (outflow) / inflow from disposals
|
|
(19)
|
108
|
333
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Property, plant and
equipment
|
|
15
|
9
|
16
|
Intangible
assets
|
|
-
|
75
|
-
|
Deferred income tax
assets
|
|
-
|
14
|
-
|
Intangible assets
– pre-publication
|
|
-
|
26
|
-
|
Inventories
|
|
-
|
28
|
-
|
Trade
and other receivables
|
|
-
|
49
|
-
|
Provisions for
liabilities and charges
|
|
-
|
(2)
|
-
|
Trade
and other liabilities
|
|
-
|
(33)
|
-
|
Financial
liabilities – borrowings
|
|
-
|
(7)
|
-
|
Net
assets classified as held for sale
|
|
15
|
159
|
16
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Derivative
financial instruments
|
|
41
|
33
|
43
|
Trade
and other receivables – investment in finance
lease
|
|
90
|
109
|
104
|
Current
assets
|
|
|
|
|
Derivative
financial instruments
|
|
17
|
1
|
16
|
Trade
and other receivables – investment in finance
lease
|
|
17
|
17
|
17
|
Cash
and cash equivalents (excluding overdrafts)
|
|
355
|
392
|
558
|
Non-current
liabilities
|
|
|
|
|
Borrowings
|
|
(1,308)
|
(1,158)
|
(1,144)
|
Derivative
financial instruments
|
|
(43)
|
(44)
|
(54)
|
Current
liabilities
|
|
|
|
|
Borrowings
|
|
(75)
|
(150)
|
(86)
|
Derivative
financial instruments
|
|
(5)
|
(10)
|
(11)
|
Net
debt
|
|
(911)
|
(810)
|
(557)
|
|
Level
1
|
Level
2
|
---Level
3---
|
Total
fair value
|
|
all figures in £ millions
|
FVTPL
– Cash and cash equivalents
|
Derivatives
|
FVOCI
Investments
|
FVTPL
– Investments and Other
|
|
|
|
|
|
|
|
2023
half year
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
24
|
114
|
138
|
Cash
and cash equivalents
|
39
|
-
|
-
|
-
|
39
|
Derivative
financial instruments
|
-
|
58
|
-
|
-
|
58
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
12
|
12
|
Total
financial assets held at fair value
|
39
|
58
|
24
|
126
|
247
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(48)
|
-
|
-
|
(48)
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
(56)
|
(56)
|
Total
financial liabilities held at fair value
|
-
|
(48)
|
-
|
(56)
|
(104)
|
|
|
|
|
|
|
2022
half year1
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
22
|
98
|
120
|
Cash
and cash equivalents
|
23
|
-
|
-
|
-
|
23
|
Derivative
financial instruments
|
-
|
34
|
-
|
-
|
34
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
-
|
-
|
Total
financial assets held at fair value
|
23
|
34
|
22
|
98
|
177
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(54)
|
-
|
-
|
(54)
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
(79)
|
(79)
|
Total
financial liabilities held at fair value
|
-
|
(54)
|
-
|
(79)
|
(133)
|
|
|
|
|
|
|
2022
full year
|
|||||
|
|
|
|
|
|
Investments in
unlisted securities
|
-
|
-
|
24
|
109
|
133
|
Cash
and cash equivalents
|
40
|
-
|
-
|
-
|
40
|
Derivative
financial instruments
|
-
|
59
|
-
|
-
|
59
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
-
|
-
|
Total
financial assets held at fair value
|
40
|
59
|
24
|
109
|
232
|
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(65)
|
-
|
-
|
(65)
|
Deferred and
contingent consideration
|
-
|
-
|
-
|
(79)
|
(79)
|
Total
financial liabilities held at fair value
|
-
|
(65)
|
-
|
(79)
|
(144)
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year1
|
full
year
|
|
|
|
|
|
At
beginning of period
|
|
133
|
200
|
200
|
Exchange
differences - OCI
|
|
(5)
|
9
|
11
|
Additions
|
|
18
|
4
|
12
|
Repayments
|
|
-
|
(87)
|
(88)
|
Disposals
|
|
(3)
|
(31)
|
(48)
|
Fair
value movements - Income Statement
|
|
5
|
6
|
28
|
Fair
value movements - OCI
|
|
2
|
19
|
18
|
At
end of period
|
|
150
|
120
|
133
|
|
|
|
|
|
all figures in £ millions
|
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
At
beginning of period
|
|
(79)
|
(44)
|
(44)
|
Exchange
differences
|
|
4
|
(7)
|
(7)
|
Acquisitions
|
|
-
|
(41)
|
(42)
|
Fair
value movements - Income Statement
|
|
(2)
|
6
|
4
|
Repayments
|
|
21
|
7
|
10
|
At end of period
|
|
(56)
|
(79)
|
(79)
|
|
|
|
|
|
all figures in £ millions
|
Statutory
measure
|
Cost of
major restructuring
|
Other
net gains and losses
|
Intangible
charges
|
UK
Pension discretionary increases
|
Purchase
/ disposal of PPE and software
|
Net
addition of right of use assets
|
Dividends
from joint ventures and associates
|
Adjusted
measure
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
2023
half year
|
|||||||||||||
Operating
profit
|
219
|
-
|
7
|
24
|
-
|
-
|
-
|
-
|
250
|
Adjusted operating profit
|
|||||||
Net
cash generated from operations
|
106
|
46
|
-
|
-
|
-
|
(62)
|
(11)
|
-
|
79
|
Operating cash flow
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
2022
half year
|
|||||||||||||
Operating
profit
|
148
|
-
|
(14)
|
26
|
-
|
-
|
-
|
-
|
160
|
Adjusted operating profit
|
|||||||
Net
cash generated from operations
|
53
|
13
|
-
|
-
|
-
|
(53)
|
(6)
|
2
|
9
|
Operating cash flow
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
2022
full year
|
|||||||||||||
Operating
profit
|
271
|
150
|
(24)
|
56
|
3
|
-
|
-
|
-
|
456
|
Adjusted operating profit
|
|||||||
Net
cash generated from operations
|
527
|
35
|
-
|
-
|
-
|
(133)
|
(29)
|
1
|
401
|
Operating cash flow
|
|
|
|
|
|
all figures in £ millions
|
note
|
2023
|
2022
|
2022
|
|
|
half
year
|
half
year
|
full
year
|
|
|
|
|
|
Reconciliation
of operating cash flow to closing net debt
|
|
|
|
|
|
|
|
|
|
Operating
cash flow
|
|
79
|
9
|
401
|
Tax
paid
|
|
(59)
|
(51)
|
(109)
|
Net
finance costs paid
|
|
(24)
|
(24)
|
(35)
|
Cost
paid for major restructuring
|
|
(46)
|
(13)
|
(35)
|
Free
cash flow
|
|
(50)
|
(79)
|
222
|
Dividends paid
(including to non-controlling interest)
|
|
(106)
|
(107)
|
(157)
|
Net
movement of funds from operations
|
|
(156)
|
(186)
|
65
|
Acquisitions and
disposals
|
|
(200)
|
(121)
|
105
|
Disposal of lease
liabilities
|
|
-
|
-
|
8
|
Net
equity transactions
|
|
(23)
|
(163)
|
(383)
|
Other
movements on financial instruments
|
|
25
|
10
|
(2)
|
Movement
in net debt
|
|
(354)
|
(460)
|
(207)
|
Opening
net debt
|
|
(557)
|
(350)
|
(350)
|
Closing
net debt
|
14
|
(911)
|
(810)
|
(557)
|
|
PEARSON
plc
|
|
|
Date: 31
July 2023
|
|
|
By: /s/
NATALIE WHITE
|
|
|
|
------------------------------------
|
|
Natalie
White
|
|
Deputy
Company Secretary
|