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)
|
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Pearson plc published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 20:12:36 UTC.