Pearson to focus on high-growth areas in 2021
Pearson (LON:PSON) confirmed on Monday that it will maintain its dividend for the year as the education company expects a recovery after its sales took a hit during the pandemic.
The FTSE 100 firm has proposed a final dividend of 13.5p per share. This brings the full-year figure to 19.5p, in line with 2019.
Pearson also confirmed that sales during 2020 fell by 12% to £3.4bn. Underlying profits dipped by 46% to £315m, while underlying revenue dropped by 10%.
The company’s results came about following widespread closures of schools and cancellations of exams.
Looking forward, Pearson will now look to focus on fast-growing areas: Online and digital learning; English language tuition; workforce skills and accreditation and certification.
Russ Mould, investment director at AJ Bell, drew attention to the company’s move towards home working.
“Another interesting feature of Pearson’s new strategy is a big reduction in its property footprint as it plans to adapt to more home working.”
“Pearson’s move follows in the footsteps of other major companies such as banking firms Lloyds and Barclays and could well send a chill through the office property space.”
Andy Bird, chief executive of Pearson, commented on the company’s results and outlook:
“Our purpose has never been so relevant: we exist to help everyone achieve their potential through learning. I have witnessed this first-hand every day since joining Pearson, having spent time with customers, employees and other key stakeholders. I have enormous optimism in the future and our ability to unlock our potential and drive sustainable growth.”
“Pearson’s strategy is now geared around three key demand-led global market opportunities which play to all our strengths: the rise in online and digital learning; addressing the workforce skills gap; and meeting the growing demand for dependable accreditation and certification. Our existing assets, strong balance sheet, new organisational structure and priorities will enable us to seize these opportunities. As the global leader in learning, nobody else has the breadth and depth of experience, scale, expertise and relationships across the entire lifelong learning spectrum.”
“Following significant investments in technology and comprehensive restructuring, Pearson is moving at pace and ready to enter a new era as a digital-first company, focused on delivering sustainable revenue and profit growth for the benefit of all company stakeholders.”