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)
|
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Pearson plc published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 12:38:04 UTC.