Pearson Reaffirms 2024 Outlook: Sales Growth, Profit, And Tax In Line With Market Expectations; Expects Free Cash Flow Conversion Of 95-100%

Author: Benzinga Newsdesk | July 29, 2024 02:55am

Outlook

2024 Outlook reaffirmed4
Group underlying sales growth, adjusted operating profit and tax outlook for 2024 remain in line with market expectations. As guided, interest will be c.£45m and free cash flow conversion 95-100%.

In terms of divisional guidance and phasing:

• Expect improved growth momentum in the second half of 2024 with the growth of Higher Education and normalised comparators for the assessments businesses.
• In Assessment & Qualifications, we continue to expect low to mid-single digit sales growth for the year, with sales growth weighted to H2.
• In Virtual Schools, we continue to expect sales to decline at a similar rate to 2023, given the previously cited loss of a larger partner school for the 2024/25 academic year. We expect Virtual Schools to return to growth in 2025 and beyond.
• In Higher Education, we remain confident we will return to growth in the second half and for the full year. Growth in digital sales will continue to shift revenue recognition from Q3 to Q4.
• In English Language Learning, we continue to expect high single digit sales growth and growth weighted to the second half given the outstanding performance in the first half of 2023. The growth will be driven mainly by Institutional, with PTE being flat to down.
• In Workforce Skills, we expect to achieve high single digit sales growth.
• Every 1c movement in £:$ rate equates to approximately £5m adjusted operating profit impact

Posted In: PSO