Pearson Interim Results for the six months to 30th June 2025 (Unaudited)
Pearson (NYSE:PSO) reported its H1 2025 interim results with underlying group sales growth of 2% to £1,722m and adjusted operating profit up 2% to £242m. The company demonstrated strong free cash flow performance of £156m, up £129m year-over-year.
Key operational highlights include strategic AI partnerships with Microsoft, AWS, and Google Cloud, the acquisition of eDynamic Learning for $225m, and a 5% increase in interim dividend to 7.8p. The company's £350m share buyback program is 48% complete.
Performance varied across divisions with Higher Education up 4%, Enterprise Learning & Skills up 4%, Assessment & Qualifications up 2%, while Virtual Learning declined 1% and English Language Learning decreased 3%. Pearson maintains its 2025 guidance and expects stronger growth in H2, particularly in Q4.
[ "Free cash flow increased significantly by £129m to £156m", "Strategic AI partnerships secured with Microsoft, AWS, and Google Cloud", "Higher Education segment showed 4% growth with 21% increase in Inclusive Access", "Interim dividend increased by 5% to 7.8p", "Virtual Learning showed 5% enrollment growth in Spring semester", "Strong balance sheet with net debt decreased by £0.2bn to £1.0bn", "Strategic acquisition of eDynamic Learning completed for $225m" ]Pearson (NYSE:PSO) ha comunicato i risultati semestrali del 2025 con una crescita delle vendite di gruppo sottostante del 2%, pari a £1.722 milioni, e un utile operativo rettificato in aumento del 2% a £242 milioni. L'azienda ha mostrato una solida performance di free cash flow di £156 milioni, in crescita di £129 milioni rispetto all'anno precedente.
I punti salienti operativi includono partnership strategiche sull'IA con Microsoft, AWS e Google Cloud, l'acquisizione di eDynamic Learning per 225 milioni di dollari e un aumento del dividendo intermedio del 5% a 7,8 pence. Il programma di riacquisto azionario da £350 milioni è completato al 48%.
La performance varia tra le divisioni: l'Istruzione Superiore cresce del 4%, Enterprise Learning & Skills del 4%, Assessment & Qualifications del 2%, mentre Virtual Learning cala dell'1% e English Language Learning del 3%. Pearson conferma le previsioni per il 2025 e prevede una crescita più robusta nella seconda metà dell'anno, soprattutto nel quarto trimestre.
- Il free cash flow è aumentato significativamente di £129 milioni, raggiungendo £156 milioni
- Partnership strategiche sull'IA siglate con Microsoft, AWS e Google Cloud
- Il segmento Istruzione Superiore ha mostrato una crescita del 4% con un aumento del 21% nell'Inclusive Access
- Il dividendo intermedio è aumentato del 5%, arrivando a 7,8 pence
- Virtual Learning ha registrato una crescita delle iscrizioni del 5% nel semestre primaverile
- Bilancio solido con un debito netto ridotto di £0,2 miliardi a £1,0 miliardi
- Completata l'acquisizione strategica di eDynamic Learning per 225 milioni di dollari
Pearson (NYSE:PSO) informó sus resultados interinos del primer semestre de 2025 con un crecimiento subyacente de las ventas del grupo del 2% hasta £1,722 millones y un beneficio operativo ajustado que aumentó un 2% hasta £242 millones. La compañía mostró un sólido desempeño en flujo de caja libre de £156 millones, un aumento de £129 millones interanual.
Los aspectos operativos clave incluyen asociaciones estratégicas de IA con Microsoft, AWS y Google Cloud, la adquisición de eDynamic Learning por $225 millones y un aumento del 5% en el dividendo interino a 7,8 peniques. El programa de recompra de acciones de £350 millones está completado en un 48%.
El desempeño varió entre divisiones: Educación Superior creció un 4%, Enterprise Learning & Skills un 4%, Assessment & Qualifications un 2%, mientras que Virtual Learning disminuyó un 1% y English Language Learning un 3%. Pearson mantiene sus previsiones para 2025 y espera un crecimiento más fuerte en la segunda mitad del año, especialmente en el cuarto trimestre.
- El flujo de caja libre aumentó significativamente en £129 millones, alcanzando £156 millones
- Asociaciones estratégicas de IA aseguradas con Microsoft, AWS y Google Cloud
- El segmento de Educación Superior mostró un crecimiento del 4% con un aumento del 21% en Inclusive Access
- El dividendo interino aumentó un 5% a 7,8 peniques
- Virtual Learning mostró un crecimiento del 5% en inscripciones en el semestre de primavera
- Balance sólido con deuda neta reducida en £0,2 mil millones a £1,0 mil millones
- Adquisición estratégica de eDynamic Learning completada por $225 millones
Pearson (NYSE:PSO)는 2025년 상반기 중간 실적을 발표하며 기초 그룹 매출이 2% 성장해 17억 2,200만 파운드를 기록했고, 조정 영업이익은 2% 증가해 2억 4,200만 파운드에 달했습니다. 회사는 전년 대비 1억 2,900만 파운드 증가한 1억 5,600만 파운드의 강력한 자유 현금 흐름을 보여주었습니다.
주요 운영 하이라이트로는 Microsoft, AWS, Google Cloud와의 전략적 AI 파트너십, 2억 2,500만 달러 규모의 eDynamic Learning 인수, 그리고 중간 배당금 5% 인상(7.8펜스)이 포함됩니다. 3억 5,000만 파운드 규모의 자사주 매입 프로그램은 48% 완료되었습니다.
부문별 실적은 고등교육 부문이 4%, 기업 학습 및 기술 부문이 4%, 평가 및 자격 부문이 2% 성장한 반면, 가상 학습은 1% 감소하고 영어 학습 부문은 3% 줄었습니다. Pearson은 2025년 가이던스를 유지하며 하반기, 특히 4분기에 더 강한 성장을 기대하고 있습니다.
- 자유 현금 흐름이 1억 2,900만 파운드 크게 증가하여 1억 5,600만 파운드 달성
- Microsoft, AWS, Google Cloud와 전략적 AI 파트너십 체결
- 고등교육 부문은 4% 성장하며 Inclusive Access 21% 증가
- 중간 배당금 5% 인상되어 7.8펜스
- 가상 학습은 봄 학기에 등록률 5% 증가
- 순부채가 2억 파운드 감소해 10억 파운드로 건전한 재무 상태 유지
- 2억 2,500만 달러 규모의 eDynamic Learning 전략적 인수 완료
Pearson (NYSE:PSO) a publié ses résultats intermédiaires du premier semestre 2025 avec une croissance sous-jacente des ventes du groupe de 2% à 1 722 millions de livres sterling et un bénéfice d'exploitation ajusté en hausse de 2% à 242 millions de livres sterling. La société a démontré une solide performance de flux de trésorerie disponible de 156 millions de livres, en hausse de 129 millions par rapport à l'année précédente.
Les faits marquants opérationnels incluent des partenariats stratégiques en IA avec Microsoft, AWS et Google Cloud, l'acquisition d'eDynamic Learning pour 225 millions de dollars, ainsi qu'une augmentation de 5% du dividende intérimaire à 7,8 pence. Le programme de rachat d'actions de 350 millions de livres est achevé à 48%.
Les performances varient selon les divisions : l'enseignement supérieur progresse de 4%, Enterprise Learning & Skills de 4%, Assessment & Qualifications de 2%, tandis que Virtual Learning recule de 1% et English Language Learning de 3%. Pearson maintient ses prévisions pour 2025 et prévoit une croissance plus forte au second semestre, en particulier au quatrième trimestre.
- Le flux de trésorerie disponible a augmenté significativement de 129 millions de livres pour atteindre 156 millions
- Partenariats stratégiques en IA conclus avec Microsoft, AWS et Google Cloud
- Le segment de l'enseignement supérieur a affiché une croissance de 4% avec une augmentation de 21% de l'Inclusive Access
- Le dividende intérimaire a augmenté de 5% pour atteindre 7,8 pence
- Virtual Learning a enregistré une croissance des inscriptions de 5% au semestre de printemps
- Bilan solide avec une dette nette réduite de 0,2 milliard de livres à 1,0 milliard
- Acquisition stratégique d'eDynamic Learning finalisée pour 225 millions de dollars
Pearson (NYSE:PSO) veröffentlichte seine Halbjahresergebnisse 2025 mit einem unterliegenden Gruppenumsatzwachstum von 2% auf £1,722 Mio. und einem bereinigten operativen Gewinnanstieg von 2% auf £242 Mio. Das Unternehmen zeigte eine starke Free-Cashflow-Performance von £156 Mio., was einem Anstieg von £129 Mio. gegenüber dem Vorjahr entspricht.
Wichtige operative Highlights umfassen strategische KI-Partnerschaften mit Microsoft, AWS und Google Cloud, den Erwerb von eDynamic Learning für 225 Mio. USD sowie eine Erhöhung der Zwischen-dividende um 5% auf 7,8 Pence. Das Aktienrückkaufprogramm über £350 Mio. ist zu 48% abgeschlossen.
Die Leistung variierte zwischen den Geschäftsbereichen: Higher Education wuchs um 4%, Enterprise Learning & Skills um 4%, Assessment & Qualifications um 2%, während Virtual Learning um 1% und English Language Learning um 3% zurückgingen. Pearson hält an seiner Prognose für 2025 fest und erwartet ein stärkeres Wachstum in der zweiten Jahreshälfte, insbesondere im vierten Quartal.
- Der Free Cashflow stieg deutlich um £129 Mio. auf £156 Mio.
- Strategische KI-Partnerschaften mit Microsoft, AWS und Google Cloud gesichert
- Der Bereich Higher Education verzeichnete ein Wachstum von 4% mit einer 21%igen Steigerung bei Inclusive Access
- Die Zwischen-dividende wurde um 5% auf 7,8 Pence erhöht
- Virtual Learning verzeichnete im Frühjahrssemester ein Einschreibungswachstum von 5%
- Starke Bilanz mit einer Nettoverschuldung, die um £0,2 Mrd. auf £1,0 Mrd. gesunken ist
- Strategische Übernahme von eDynamic Learning für 225 Mio. USD abgeschlossen
- None.
- Virtual Learning sales declined 1% due to school losses
- English Language Learning sales decreased 3%
- Adjusted earnings per share declined to 24.5p from 25.6p
- Pearson VUE declined due to contract pause and US federal government spending reductions
- Higher effective tax rate at 24.5% compared to 23.6% in H1 2024
Insights
Pearson delivered modest 2% growth in H1 with stronger H2 expected; performance aligns with guidance despite mixed segment results.
Pearson's H1 2025 results demonstrate modest but steady performance with
Looking at segment performance, Higher Education emerged as the strongest performer with
The
Management's confirmation that they're on track to meet 2025 guidance with stronger growth expected in H2 is reassuring, particularly given the
The acquisition of eDynamic Learning for
While Pearson maintains its medium-term outlook for mid-single-digit sales growth with margin improvement of approximately 40 basis points annually, investors should note the company's heavy reliance on Q4 performance to achieve 2025 targets, which introduces some execution risk.
Continued strategic and operational progress against medium term strategy. On track to deliver 2025 guidance with stronger growth expected in H2.
£m | H1 2025 | vs H1 2024 | £m | H1 2025 | H1 2024 | |
Business performance | Statutory results | |||||
Sales | 1,722 | +2% 1 | Sales | 1,722 | 1,754 | |
Adjusted operating profit | 242 | + | Operating profit | 240 | 219 | |
Operating cash flow | 126 | Profit for the period | 166 | 158 | ||
Free cash flow | 156 | + | Net cash generated from operations | 188 | 185 | |
Adjusted earnings per share | 24.5p | (4)%2 | Basic earnings per share | 24.8p | 23.1p | |
- Group sales1 up
2% underlying with each business unit performing broadly in line with our expectations. - Adjusted operating profit1 up
2% underlying to£242m . - Strong free cash performance up
£129m to£156m , including the receipt of£114m State Aid tax recovery. - Interim dividend up
5% and£350m share buyback well underway, with ongoing balance sheet strength. - On track to deliver 2025 guidance with stronger growth expected in H2.
- Continued strategic and operational progress, including:
- Strategic partnerships with Microsoft, AWS, and most recently, Google Cloud, progressing AI transformation agenda (link here);
- Enterprise business building momentum, with new partners such as HCLTech (link here);
- Continuing to develop product suite and apply innovative technologies including new "Go Deeper" feature within our AI-powered study tools and launch of Pearson English Express Test (link here);
- Accelerating access to adjacent markets, with a strategic collaboration with McGraw Hill in formative assessments (link here);
- Completed the acquisition of eDynamic Learning, adding a core pillar to our Early Careers strategy (link here).
Omar Abbosh, Pearson's Chief Executive, said:
"We are on track to deliver the three priorities we set out for the year, with performance to date in line with our expectations, and are confident of stronger growth in the second half. We are making rapid progress with bringing AI-powered products to market and are scaling and enhancing our enterprise business with a range of new partnerships and deals. Our sharp focus on rigorous execution and continuous innovation is driving progress against our strategy, improving Pearson's agility, efficiency and resilience, and positioning us to deliver consistent mid-single digit sales growth over the medium term."
- Assessment & Qualifications sales were up
2% with strong growth in Clinical Assessments andUK & International Qualifications, partially offset by declines in Pearson VUE and US Student Assessment. Pearson VUE decline was driven by the pause in a contract delivered in 2024 which will recommence in H2 2025, and headwinds in PDRI, which has been impacted by US federal government hiring and spend reductions which we expect to continue in the second half. - Virtual Learning sales were down
1% , as expected, due to the final portion of the impact of previously announced school losses. 2024/25 academic year enrolments increased5% in the Spring semester on a same school basis, with favourable retention trends, underpinning our confidence in returning to growth in H2. - Higher Education sales were up
4% , benefiting from growth in Inclusive Access of21% and US digital subscriptions of3% . We continued to see good monetisation of our Study Prep tool, formerly known as Channels, and ongoing engagement with our AI-powered study tools. - English Language Learning sales were down
3% , in line with expectations, with Institutional impacted by a strong comparator period in H1 2024. Pearson Test of English (PTE) was flat against the prior period, performing well against a tough market backdrop. - Enterprise Learning & Skills sales were up
4% , with another solid performance in Vocational Qualifications and Enterprise Solutions building momentum.
- Underlying performance driven by operating leverage on sales growth partially offset by inflation.
- On a headline basis, profit was down
3% with positive underlying performance more than offset by translation currency headwinds. First half adjusted profit margin was flat against the prior period at14% (H1 2024:14% ). - Adjusted net finance costs increased to
£24m (H1 2024:£21m ). The effective tax rate on adjusted profit before tax increased to24.5% (H1 2024:23.6% ). - Adjusted earnings per share declined to 24.5p (H1 2024: 25.6p) with positive underlying trading performance, and a reduction in share count due to the share buyback programmes, more than offset by currency headwinds and increased interest.
- Operating cash flow was in line with the prior period at
£126m (H1 2024:£129m ) with continued good working capital management offsetting currency headwinds. - Free cash flow was again strong up
£129m to£156m (H1 2024:£27m ) given the operating cash performance and the receipt of£114m State Aid tax recovery, inclusive of interest, in the period.
- Net debt decreased
£0.2b n to£1.0b n at 30th June 2025 (H1 2024:£1.2b n) as free cash flow was partially offset by dividends and the share buyback. - Proposed interim dividend of 7.8p (H1 2024: 7.4p), represents an increase of
5% . - Previously announced
£350m share buyback programme well underway and is expected to complete in H2. As at 30th June 2025,£169m of shares had been repurchased representing48% of the total programme. - Secured new three-year,
$800m
- Sales decreased
2% on a headline basis to£1,722m (H1 2024:£1,754m ) with currency movements partially offset by positive underlying business performance. - Statutory operating profit increased
10% on a headline basis to£240m (H1 2024:£219m ) driven by operating leverage on sales growth, gains on disposals and the reversal of impairments on property assets, partially offset by inflation and currency headwinds. - Net cash generated from operations of
£188m (H1 2024:£185m ). - Statutory earnings per share of 24.8p (H1 2024: 23.1p).
- In Assessment & Qualifications, Pearson VUE won several new contracts with continued strong customer retention supporting future growth. US Student Assessment also successfully renewed and extended several key contracts in the period. In
UK & International Qualifications we continued to scale internationally. In Clinical Assessments we expanded our customer set with our first statewide adoption of our digital offering. The application of AI across our products continued with the launch of an AI-powered GCSE Exam Practice Assistant, as part of our collaboration with AWS. - In Virtual Learning, we completed the rollout of our new enrolment portal which we expect to support sales growth in the second half of the year. We are also embedding our career academies across the network ahead of fall back to school and are on track to open two new schools in H2 taking our total number of schools up to 42. We also successfully secured all six of our long term school contracts being renewed in H1. We continue to apply innovative technologies through integrating AI into our study tools, driving higher course scores and end-of-semester pass rates.
- In Higher Education, we continued to build upon the successful monetisation of our Study Prep tool which we expanded into international markets in the first half of this year. We continue to rollout our AI-powered study tools across disciplines – including our new "Go Deeper" feature, which further supports students with engagement, new cognitive skills and higher order learning outcomes.
- In English Language Learning, we announced a partnership with BorderPass, expanding our PTE go-to-market reach for international students and skilled migrants in
Canada . We are also launching our new Pearson English Express Test which expands our addressable market, responding to demand for a trusted, accessible test for US-bound learners. Within Institutional we continue to expand internationally with customer wins in LATAM. We continue to make progress on the application of innovative technologies with the recent launch of AI-powered Smart Lesson Generator and Digital Language Tutor. - In Enterprise Learning & Skills, Vocational Qualifications delivered a solid performance in the period with several new contract wins supporting pipeline growth, including apprenticeship courses with the
UK Ministry of Defence, T Levels in Health and Science, and International BTEC expansion. Within Enterprise Solutions we announced strategic partnerships with Microsoft, AWS and Google Cloud and are building momentum in our Enterprise approach, with new partners such as HCLTech. We have made enhancements to our talent assessment platform, TalentLens, through combining capabilities with PDRI's secure and scalable Palladium offering. We have also enabled third party credential uploads onto the Credly platform, to advance our goal of Credly becoming the most complete source of verified learning and skills data globally.
- Higher Education recently completed the acquisition of eDynamic Learning, a leading Career and Technical Education (CTE) curriculum solutions provider for an enterprise value of
$225m - We have operationalised our dedicated K-12 sales team within Higher Education, enabling us to expand and strengthen customer relationships with US school administrators as the demand for college and career readiness programmes grows.
- Pearson VUE successfully launched the Pearson Skilling Suite and continues to make progress building out its test prep business.
- Within US Student Assessment we announced an exclusive partnership with McGraw Hill to integrate our leading interim assessment capabilities directly into McGraw Hill's K-12 curriculum solutions, unlocking go-to-market opportunities in formative assessment.
- We continue to expect sales growth and adjusted operating profit in line with market expectations4 for 2025 with stronger sales growth in H2, in particular in Q4. We outline our 2025 guidance later in this release.
- The acquisition of eDynamic Learning is not expected to have a material impact to 2025 guidance given near term integration costs and the acquisition accounting for deferred revenue.
- Beyond 2025, Pearson is positioned to deliver a mid-single digit underlying sales growth CAGR, sustained margin improvement that will equate to an average increase of 40 basis points per annum and strong free cash conversion5, in the region of
90% to100% , on average, across the period.
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Gemma Terry Brennan Matthews | +44 (0) 7841 363 216 +1 (332) 238-8785 | |
Media Teneo Pearson |
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+44 (0) 7492 949 346 +44 (0) 7798 846 805 |
Results event | Pearson's Interim Results presentation will |
About Pearson
At Pearson, our purpose is simple: to help people realise the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's lifelong learning company, serving customers with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at pearsonplc.com.
Notes
Forward looking statements: Except for the historical information contained herein, the matters discussed in this statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated cost savings and synergies and the execution of Pearson's strategy, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. They are based on numerous assumptions regarding Pearson's present and future business strategies and the environment in which it will operate in the future. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition. They also include other risks detailed from time to time in Pearson's publicly-filed documents and you are advised to read, in particular, the risk factors set out in Pearson's latest annual report and accounts, which can be found on its website (www.pearsonplc.com). Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on such forward-looking statements.
£m |
H1 2025 |
H1 20243 | Headline growth | Underlying growth1 |
Sales | ||||
Assessment & Qualifications | 802 | 811 | (1) % | 2 % |
Virtual Learning | 242 | 254 | (5) % | (1) % |
Higher Education | 337 | 336 | 0 % | 4 % |
English Language Learning | 171 | 188 | (9) % | (3) % |
Enterprise Learning & Skills | 170 | 165 | 3 % | 4 % |
Total | 1,722 | 1,754 | (2) % | 2 % |
Adjusted operating profit/(loss) | ||||
Assessment & Qualifications | 170 | 187 | (9) % | (6) % |
Virtual Learning | 39 | 31 | 26 % | 32 % |
Higher Education | (3) | (7) | 57 % | 75 % |
English Language Learning | (7) | 4 | (275) % | (200) % |
Enterprise Learning & Skills | 43 | 35 | 23 % | 20 % |
Total | 242 | 250 | (3) % | 2 % |
1Throughout this announcement: a) Growth rates are stated on an underlying basis unless otherwise stated. Underlying growth rates exclude currency movements, and portfolio changes. b) The 'business performance' measures are non-GAAP measures and reconciliations to the equivalent statutory heading under IFRS are included in notes to the attached condensed consolidated financial statements 2, 3, 4, 6 and 12. |
2 Headline growth rate. |
3In January 2025, the Group announced that Workforce Skills would evolve to become Enterprise Learning & Skills, incorporating our IT Pro business which was previously in Higher Education. Comparative figures have been restated to reflect the move between segments, resulting in |
Assessment & Qualifications
In Assessment & Qualifications, sales increased
Pearson VUE sales declined
In US Student Assessment, sales decreased
In Clinical Assessment, sales increased
In
Virtual Learning
Virtual Learning sales were down
Higher Education
In Higher Education, sales increased
English Language Learning
In English Language Learning, sales were down
Enterprise Learning & Skills
In Enterprise Learning & Skills, sales were up
Vocational Qualifications delivered solid growth while Enterprise Solutions improved quarter on quarter as we build momentum in our Enterprise approach and related sales capability, including new wins such as HCLTech.
2025 guidance summary
Underlying Sales growth
| Group | In line with market expectations4with stronger sales growth in H2, in particular in Q4. |
Assessment & Qualifications | Sales to grow low to mid-single digit. Growth will be H2 weighed, in particular to Q4, due to new and renewed contracts and the new test prep business. | |
Virtual Learning | Return to growth in H2, and for the full year, driven by enrolment increases, partially from new school openings, for the 25/26 academic year. | |
Higher Education | Sales growth in 2025 will be higher than in 2024 as we build on the successful results of our sales team transformation and product innovations, particularly using AI. | |
English Language Learning | Sales growth will moderate given the impacts of elections on immigration rates in 2025 affecting our PTE business, which is expected to decline in the year. We expect growth to be H2 weighted, in particular to Q4. We remain confident in the medium term outlook given demographic projections. | |
Enterprise Learning & Skills | Sales to grow high single digit with Vocational Qualifications seeing solid growth and the addition of several new contracts for Enterprise Solutions. Growth will increase quarter on quarter supported by recent customer annoucements and pipeline activity. | |
Group Profit | Adjusted Operating Profit | In line with market expectations4. |
Interest | Adjusted net finance costs of c. | |
Tax rate | We expect the effective tax rate on adjusted profit before tax to be between | |
Cash flow | We expect a free cash flow conversion5 of 90 | |
FX | Every 1c movement in GBP:USD rate equates to approximately | |
42025 consensus on the Pearson website dated 27th January 2025; underlying sales growth |
5Free cash flow conversion calculated as free cash flow divided by adjusted earnings. |
Exchange rates | H1 2025 | H1 2024 | FY 2024 |
£:$ | |||
Average rate for profits | 1.31 | 1.26 | 1.28 |
Period end rate | 1.37 | 1.26 | 1.25 |
FINANCIAL REVIEW
Operating result
Sales for the six months to 30 June 2025 decreased on a headline basis by
The headline basis simply compares the reported results for the six months to 30 June 2025 with those for the equivalent period in the prior year. We also present sales and profits on an underlying basis which excludes the effects of exchange, the effect of portfolio changes arising from acquisitions and disposals and the impact of adopting new accounting standards that are not retrospectively applied, when relevant. Our portfolio change is calculated by excluding sales and profits made by businesses disposed in 2024 or 2025 and by ensuring the contribution from acquisitions is comparable year on year. For prior year acquisitions, the corresponding pre-acquisition period is excluded from the current year. Portfolio changes mainly relate to the disposal of Copp Clark in 2025.
On an underlying basis, sales increased by
Adjusted operating profit includes the results from discontinued operations when relevant but excludes charges for acquired intangible amortisation and impairment, acquisition related costs, gains and losses arising from disposals, the cost of major reorganisation, when relevant, property charges and one off-costs related to the
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Operating profit | 240 | 219 | 541 | |
Add back: Cost of major reorganisation | - | - | (2) | |
Add back: Intangible charges | 20 | 20 | 41 | |
Add back: | - | 5 | 13 | |
Add back: Other net gains and losses | (7) | 6 | 7 | |
Add back: Property charges | (11) | - | - | |
Adjusted operating profit | 242 | 250 | 600 |
Costs of major reorganisation – In the first half of 2025 and 2024, there were no costs of major reorganisation. In the second half of 2024, there was a release of
Intangible amortisation charges to the end of June 2025 were
Other net gains and losses in 2025 relate to the gain on disposal of a business in our Higher Education division, a fair value gain relating to a previous disposal and costs relating to prior year acquisitions and disposals. Other net gains and losses in 2024 relate to costs related to prior year acquisitions and disposals, partially offset by a gain on the partial disposal of our investment in an associate.
Property charges in 2025 are a gain of
The reported operating profit of
Due to seasonal bias in some of the Group's businesses, Pearson typically makes a higher proportion of its profits and operating cash flows in the second half of the year.
Net finance costs
Net finance costs increased on a headline basis from a net cost of
Adjusted net finance costs reflected in adjusted earnings to 30 June 2025 was
In the period to 30 June 2025, the total of items excluded from adjusted earnings was net income of
Taxation
The reported tax on statutory earnings for the six months to 30 June 2025 was a charge of
The total adjusted tax charge for the period was
In the first half of 2025, there was a net tax receipt of
Other comprehensive income
Included in other comprehensive income are the net exchange differences on translation of foreign operations. The loss on translation of
Also included in other comprehensive income at 30 June 2025 is an actuarial loss of
Fair value losses of
Cash flow and working capital
Our operating cash flow measure is used to align cash flows with our adjusted profit measures (see note 12 to the condensed consolidated financial statements). Operating cash flow decreased on a headline basis by
The equivalent statutory measure, net cash generated from operations, was an inflow of
Free cash flow increased on a headline basis by
In the first half of 2025, there was an overall decrease of
Liquidity and capital resources
The Group's net debt increased from
At 30 June 2025, the Group had approximately
Post-retirement benefits
Pearson operates a variety of pension and post-retirement plans. The
The charge to profit in respect of worldwide pensions and retirement benefits amounted to
The overall surplus on
Businesses acquired and disposed
The Group made no acquisitions of subsidiaries in the first half of 2025 or 2024. The cash outflow in the first half of 2025 relating to acquisition of subsidiaries was
The Group disposed of Copp Clark in the first half of 2025 for consideration of
On 24 July 2025, the Group completed the acquisition of
Dividends
The dividend accounted for in the six months to 30 June 2025 is the final dividend in respect of 2024 of 16.6p. An interim dividend for 2025 of 7.8p was declared by the Board in July 2025 and will be accounted for in the second half of 2025. The interim dividend will be paid on 15 September 2025 to shareholders who are on the register of members at close of business on 15 August 2025 (the Record Date). Shareholders may elect to reinvest their dividend in the Dividend Reinvestment Plan (DRIP). The last date for receipt of DRIP elections and revocations will be 22 August 2025. A Dividend Reinvestment Plan (DRIP) is provided by our Registrar, Computershare Investor Services. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.computershare.com/Investor
Share buyback
On 27 February 2025, the Board approved a
Principal risks and uncertainties
In the 2024 Annual Report and Accounts, we set out our assessment of the principal risk issues that face the business under the categories: accreditation risk, artificial intelligence, content and channel risks, capability risk, competitive marketplace, customer expectations, portfolio change, and reputation and responsibility. We also noted in our 2024 Annual Report and Accounts that the Group continues to closely monitor significant near-term and emerging risks which have been identified as climate transition, economic changes, tax, sanctions and geopolitics.
The principal risks and uncertainties are summarised below. The selection of principal risks will be reviewed in the second half of the year alongside the Group's long-term strategic planning process. However, these risks have not changed materially from those detailed in the 2024 Annual Report.
Accreditation Risk
Termination or modification of accreditation due to policy changes or failure to maintain the accreditation of our courses and assessments by states, countries, and professional associations, reducing their eligibility for funding or attractiveness to learners. Awarding bodies may also require modification of tests to continue to receive accreditation which may reduce the convenience to learners or increase the cost of delivery.
Artificial Intelligence, Content and Channel Risk
The risk that our intellectual property is harder to protect as a result of increased content generation through artificial intelligence and that our content and method of delivery (channel) is, or is perceived to be, insufficiently differentiated in terms of outcomes or learner experience.
Capability Risk
Inability to meet our contractual obligations or to transform as required by our strategy, due to infrastructure, systems or organisational challenges.
Competitive Marketplace
Significant changes in our target markets could make those markets less attractive. This could be due to significant changes in demand or in supply, which impact the addressable market, market share and margins (e.g. changes in enrolments, in-sourcing of learning and assessment by customers, open educational resources, a shift from in-person to virtual learning or vice versa, or innovations in areas such as generative AI).
Customer Expectations
Rising end-user expectations increase the need to offer differentiated value propositions, risking margin pressure to meet these expectations and potential loss of sales if not successful.
Portfolio Change
Failure to effectively execute desired or required portfolio changes to promote scale or capability and increase focus on key business units and geographic markets, due to either execution failures or inability to secure transactions at appropriate valuations.
Reputation and Responsibility
Reputational and responsibility risks involve failing to meet obligations and demands of key stakeholders, including legal, regulatory, ethical and behavioural expectations. These risks extend beyond direct consequences to include broader societal and cultural perceptions.
CONDENSED CONSOLIDATED INCOME STATEMENT for the period ended 30 June 2025 | ||||
all figures in £ millions | note | 2025 | 2024 | 2024 |
half year | half year | full year | ||
Continuing operations | ||||
Sales | 2 | 1,722 | 1,754 | 3,552 |
Cost of goods sold | (843) | (875) | (1,741) | |
Gross profit | 879 | 879 | 1,811 | |
Operating expenses | (645) | (654) | (1,265) | |
Other net gains and losses | 2 | 7 | (6) | (7) |
Share of results of joint ventures and associates | (1) | - | 2 | |
Operating profit | 2 | 240 | 219 | 541 |
Finance costs | 3 | (47) | (57) | (112) |
Finance income | 3 | 25 | 50 | 81 |
Profit before tax | 218 | 212 | 510 | |
Income tax | 4 | (52) | (54) | (75) |
Profit for the period | 166 | 158 | 435 | |
Attributable to: | ||||
Equity holders of the company | 164 | 157 | 434 | |
Non-controlling interest | 2 | 1 | 1 | |
Earnings per share from continuing operations (in pence per share) | ||||
Basic | 5 | 24.8p | 23.1p | 64.5p |
Diluted | 5 | 24.5p | 22.8p | 63.5p |
The accompanying notes to the condensed consolidated financial statements form an integral part of the financial information. |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2025 | ||||
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Profit for the period | 166 | 158 | 435 | |
Items that may be reclassified to the income statement | ||||
Net exchange differences on translation of foreign operations | (263) | (9) | (35) | |
Attributable tax | (1) | - | 2 | |
Items that are not reclassified to the income statement | ||||
Fair value loss on other financial assets | (6) | (4) | (2) | |
Attributable tax | - | - | - | |
Remeasurement of retirement benefit obligations | (12) | 1 | 5 | |
Attributable tax | 3 | - | (2) | |
Other comprehensive expense | (279) | (12) | (32) | |
Total comprehensive (expense) / income | (113) | 146 | 403 | |
Attributable to: | ||||
Equity holders of the company | (114) | 145 | 402 | |
Non-controlling interest | 1 | 1 | 1 | |
CONDENSED CONSOLIDATED BALANCE SHEET as at 30 June 2025 | ||||
all figures in £ millions | note | 2025 | 2024 | 2024 |
half year | half year | full year | ||
Property, plant and equipment | 203 | 207 | 216 | |
Investment property | 74 | 75 | 77 | |
Intangible assets | 9 | 2,809 | 3,050 | 3,026 |
Investments in joint ventures and associates | 11 | 11 | 12 | |
Deferred income tax assets | 48 | 34 | 52 | |
Financial assets – derivative financial instruments | 16 | 4 | 20 | |
Retirement benefit assets | 488 | 491 | 491 | |
Other financial assets | 126 | 141 | 141 | |
Income tax assets | - | 41 | 4 | |
Trade and other receivables | 108 | 134 | 125 | |
Non-current assets | 3,883 | 4,188 | 4,164 | |
Intangible assets – product development | 873 | 941 | 947 | |
Inventories | 71 | 89 | 74 | |
Trade and other receivables | 999 | 1,081 | 1,030 | |
Financial assets – derivative financial instruments | 38 | 55 | 31 | |
Current income tax assets | 14 | 23 | 103 | |
Cash and cash equivalents (excluding overdrafts) | 347 | 332 | 543 | |
Current assets | 2,342 | 2,521 | 2,728 | |
Assets classified as held for sale | - | - | - | |
Total assets | 6,225 | 6,709 | 6,892 | |
Financial liabilities – borrowings | 10 | (1,426) | (1,300) | (1,157) |
Financial liabilities – derivative financial instruments | (3) | (3) | (4) | |
Deferred income tax liabilities | (68) | (56) | (63) | |
Retirement benefit obligations | (35) | (42) | (41) | |
Provisions for other liabilities and charges | (11) | (14) | (13) | |
Other liabilities | (64) | (65) | (83) | |
Non-current liabilities | (1,607) | (1,480) | (1,361) | |
Trade and other liabilities | (902) | (1,036) | (1,054) | |
Financial liabilities – borrowings | 10 | (62) | (313) | (315) |
Financial liabilities – derivative financial instruments | (11) | (44) | (54) | |
Current income tax liabilities | (13) | (15) | (32) | |
Provisions for other liabilities and charges | (25) | (10) | (23) | |
Current liabilities | (1,013) | (1,418) | (1,478) | |
Liabilities classified as held for sale | - | - | - | |
Total liabilities | (2,620) | (2,898) | (2,839) | |
Net assets | 3,605 | 3,811 | 4,053 | |
Share capital | 163 | 167 | 166 | |
Share premium | 2,652 | 2,644 | 2,649 | |
Treasury shares | (22) | (15) | (7) | |
Reserves | 796 | 1,000 | 1,230 | |
Total equity attributable to equity holders of the company | 3,589 | 3,796 | 4,038 | |
Non-controlling interest | 16 | 15 | 15 | |
Total equity | 3,605 | 3,811 | 4,053 | |
The condensed consolidated financial statements were approved by the Board on 31 July 2025. |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2025 | |||||||||||
Equity attributable to equity holders of the company | |||||||||||
all figures in £ millions | Share | Share | Treasury | Capital | Fair value | Translation | Retained | Total | Non-controlling | Total | |
2025 half year | |||||||||||
At 1 January 2025 | 166 | 2,649 | (7) | 41 | (14) | 376 | 827 | 4,038 | 15 | 4,053 | |
Profit for the period | - | - | - | - | - | - | 164 | 164 | 2 | 166 | |
Other comprehensive income / (expense) | - | - | - | - | (6) | (262) | (10) | (278) | (1) | (279) | |
Total comprehensive income / (expense) | - | - | - | - | (6) | (262) | 154 | (114) | 1 | (113) | |
Equity-settled transactions1 | - | - | - | - | - | - | 14 | 14 | - | 14 | |
Issue of ordinary shares | - | 3 | - | - | - | - | - | 3 | - | 3 | |
Buyback of equity | (3) | - | - | 3 | - | - | (178) | (178) | - | (178) | |
Purchase of treasury shares | - | - | (64) | - | - | - | - | (64) | - | (64) | |
Release of treasury shares | - | - | 49 | - | - | - | (49) | - | - | - | |
Dividends | - | - | - | - | - | - | (110) | (110) | - | (110) | |
At 30 June 2025 | 163 | 2,652 | (22) | 44 | (20) | 114 | 658 | 3,589 | 16 | 3,605 | |
1. | Equity-settled transactions are presented net of withholding taxes that the Group is obligated to pay on behalf of employees. The payments to the tax authorities are accounted for as a deduction from equity for the shares withheld. |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2025 | ||||||||||
Equity attributable to equity holders of the company | ||||||||||
all figures in £ millions | Share | Share | Treasury | Capital | Fair value | Translation | Retained | Total | Non-controlling | Total |
2024 half year | ||||||||||
At 1 January 2024 | 174 | 2,642 | (19) | 33 | (12) | 411 | 745 | 3,974 | 14 | 3,988 |
Profit for the period | - | - | - | - | - | - | 157 | 157 | 1 | 158 |
Other comprehensive income / (expense) | - | - | - | - | (4) | (9) | 1 | (12) | - | (12) |
Total comprehensive income / (expense) | - | - | - | - | (4) | (9) | 158 | 145 | 1 | 146 |
Equity-settled transactions1 | - | - | - | - | - | - | 16 | 16 | - | 16 |
Issue of ordinary shares | - | 2 | - | - | - | - | - | 2 | - | 2 |
Buyback of equity | (7) | - | - | 7 | - | - | (204) | (204) | - | (204) |
Purchase of treasury shares | - | - | (30) | - | - | - | - | (30) | - | (30) |
Release of treasury shares | - | - | 34 | - | - | - | (34) | - | - | - |
Dividends | - | - | - | - | - | - | (107) | (107) | - | (107) |
At 30 June 2024 | 167 | 2,644 | (15) | 40 | (16) | 402 | 574 | 3,796 | 15 | 3,811 |
1. | Equity-settled transactions are presented net of withholding taxes that the Group is obligated to pay on behalf of employees. The payments to the tax authorities are accounted for as a deduction from equity for the shares withheld. |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2025 | ||||||||||
Equity attributable to equity holders of the company | ||||||||||
all figures in £ millions | Share | Share | Treasury | Capital | Fair value | Translation | Retained | Total | Non-controlling | Total |
2024 full year | ||||||||||
At 1 January 2024 | 174 | 2,642 | (19) | 33 | (12) | 411 | 745 | 3,974 | 14 | 3,988 |
Profit for the period | - | - | - | - | - | - | 434 | 434 | 1 | 435 |
Other comprehensive income / (expense) | - | - | - | - | (2) | (35) | 5 | (32) | - | (32) |
Total comprehensive income / (expense) | - | - | - | - | (2) | (35) | 439 | 402 | 1 | 403 |
Equity-settled transactions1 | - | - | - | - | - | - | 37 | 37 | - | 37 |
Tax on equity-settled transactions | - | - | - | - | - | - | 11 | 11 | - | 11 |
Issue of ordinary shares | - | 7 | - | - | - | - | - | 7 | - | 7 |
Buyback of equity | (8) | - | - | 8 | - | - | (204) | (204) | - | (204) |
Purchase of treasury shares | - | - | (33) | - | - | - | - | (33) | - | (33) |
Release of treasury shares | - | - | 45 | - | - | - | (45) | - | - | - |
Dividends | - | - | - | - | - | - | (156) | (156) | - | (156) |
At 31 December 2024 | 166 | 2,649 | (7) | 41 | (14) | 376 | 827 | 4,038 | 15 | 4,053 |
1. | Equity-settled transactions are presented net of withholding taxes that the Group is obligated to pay on behalf of employees. The payments to the tax authorities are accounted for as a deduction from equity for the shares withheld. |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT for the period ended 30 June 2025 | ||||
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Cash flows from operating activities | ||||
Profit before tax | 218 | 212 | 510 | |
Net finance costs | 22 | 7 | 31 | |
Depreciation and impairment – PPE, investment property and assets held for sale | 28 | 40 | 77 | |
Amortisation and impairment – software | 57 | 61 | 117 | |
Amortisation and impairment – acquired intangible assets | 20 | 20 | 41 | |
Other net gains and losses | (7) | 5 | 5 | |
Product development capital expenditure | (125) | (130) | (284) | |
Product development amortisation | 139 | 144 | 291 | |
Share-based payment costs | 22 | 23 | 44 | |
Change in inventories | (1) | 1 | 15 | |
Change in trade and other receivables | (37) | (34) | 32 | |
Change in trade and other liabilities | (122) | (164) | (99) | |
Change in provisions for other liabilities and charges | 2 | (12) | (1) | |
Other movements | (28) | 12 | 32 | |
Net cash generated from operations | 188 | 185 | 811 | |
Interest paid | (31) | (41) | (65) | |
Tax received / (paid) | 35 | (69) | (119) | |
Net cash generated from operating activities | 192 | 75 | 627 | |
Cash flows from investing activities | ||||
Acquisition of subsidiaries, net of cash acquired | (4) | (38) | (39) | |
Purchase of investments | (5) | (7) | (7) | |
Purchase of property, plant and equipment | (14) | (18) | (33) | |
Purchase of intangible assets | (48) | (40) | (91) | |
Disposal of subsidiaries, net of cash disposed | 9 | (6) | (7) | |
Proceeds from sale of property, plant and equipment | 3 | 6 | 6 | |
Lease receivables repaid including disposals | 9 | 9 | 18 | |
Interest received | 26 | 13 | 20 | |
Dividends received | - | - | 2 | |
Net cash used in investing activities | (24) | (81) | (131) | |
Cash flows from financing activities | ||||
Proceeds from issue of ordinary shares | 3 | 2 | 7 | |
Buyback of equity | (158) | (278) | (318) | |
Settlement of share based payments | (72) | (37) | (40) | |
Repayment of borrowings | (304) | - | (921) | |
Proceeds from borrowings | 350 | 495 | 1,265 | |
Repayment of lease liabilities | (38) | (39) | (78) | |
Dividends paid to company's shareholders | (110) | (107) | (156) | |
Net cash (used in) / generated from financing activities | (329) | 36 | (241) | |
Effects of exchange rate changes on cash and cash equivalents | (35) | (7) | (21) | |
Net (decrease) / increase in cash and cash equivalents | (196) | 23 | 234 | |
Cash and cash equivalents at beginning of period | 543 | 309 | 309 | |
Cash and cash equivalents at end of period | 347 | 332 | 543 | |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
1. Basis of preparation
The condensed consolidated financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the
The condensed consolidated financial statements have also been prepared in accordance with the accounting policies set out in the 2024 Annual Report and have been prepared under the historical cost convention as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) at fair value. No new standards and interpretations that apply to annual reporting periods beginning on or after 1 January 2025 have had a material impact on the financial position of the Group.
In assessing the Group's ability to continue as a going concern for the period until 31 December 2026, the Board analysed a variety of downside scenarios, including a severe but plausible scenario, where the Group is impacted by a combination of all principal risks from H2 2024, as well as reverse stress testing to identify what would be required to either breach covenants or run out of liquidity. The severe but plausible scenario modelled a severe reduction in revenue, profit and operating cash flow from risks continuing throughout 2026. At 30 June 2025, the Group had available liquidity of c
The directors have confirmed that they have a reasonable expectation that the Group has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the assessment period to 31 December 2026. The condensed consolidated financial statements have therefore been prepared on a going concern basis.
The preparation of condensed consolidated financial statements requires the use of certain critical accounting assumptions. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the condensed consolidated financial statements, have been set out in the 2024 Annual Report.
The financial information for the year ended 31 December 2024 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The independent auditors' report on the full financial statements for the year ended 31 December 2024 was unqualified and did not contain an emphasis of matter paragraph or any statement under section 498 of the Companies Act 2006. The condensed consolidated financial statements and related notes for the six months to 30 June 2025 are unaudited but have been reviewed by the auditors and their independent review opinion is included at the end of these condensed consolidated financial statements.
Operating segments – In January 2025, the Group announced that Workforce Skills would evolve to become Enterprise Learning and Skills, incorporating our IT Pro business which was previously within Higher Education. Comparative figures for 2024 have been restated to reflect this move between segments.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
1. Basis of preparation continued
Share buy back - On 27 February 2025, the Board approved a
2. Segment information
The Group has five main global business units, which are each considered separate operating segments for management and reporting purposes. These five business units are Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education and Enterprise Learning and Skills. In January 2025, the Group announced that Workforce Skills would evolve to become Enterprise Learning and Skills, incorporating our IT Pro business which was previously within Higher Education. Comparative figures have been restated to reflect the move between segments, resulting in
all figures in £ millions | 2025 | 20241 | 20241 | |
half year | half year | full year | ||
Sales | ||||
Assessment & Qualifications | 802 | 811 | 1,591 | |
Virtual Learning | 242 | 254 | 489 | |
English Language Learning | 171 | 188 | 420 | |
Enterprise Learning and Skills | 170 | 165 | 271 | |
Higher Education | 337 | 336 | 781 | |
Total sales | 1,722 | 1,754 | 3,552 | |
Adjusted operating profit | ||||
Assessment & Qualifications | 170 | 187 | 368 | |
Virtual Learning | 39 | 31 | 66 | |
English Language Learning | (7) | 4 | 50 | |
Enterprise Learning and Skills | 43 | 35 | 20 | |
Higher Education | (3) | (7) | 96 | |
Total adjusted operating profit | 242 | 250 | 600 | |
1. Comparative amounts have been restated to reflect the move between operating segments. |
There were no material inter-segment sales.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
2. Segment information continued
The following table reconciles the Group's measure of segmental performance, adjusted operating profit, to statutory operating profit:
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Adjusted operating profit | 242 | 250 | 600 | |
Cost of major reorganisation | - | - | 2 | |
Intangible charges | (20) | (20) | (41) | |
- | (5) | (13) | ||
Other net gains and losses | 7 | (6) | (7) | |
Property charges | 11 | - | - | |
Operating profit | 240 | 219 | 541 | |
Adjusted operating profit is one of the Group's key business performance measures. The measure includes the operating profit from the total business but excludes charges for acquired intangibles amortisation and impairment, acquisition related costs, gains and losses arising from disposals, the cost of major reorganisation where relevant, property charges and one-off costs related to the
Cost of major reorganisation – In the first half of 2025 and 2024, there were no costs of major reorganisation. In the second half of 2024, there was a release of
Intangible amortisation – These represent charges relating to intangibles acquired through business combinations. These charges are excluded as they reflect past acquisition activity and do not necessarily reflect the current year performance of the Group. Intangible amortisation charges in the first half of 2025 were
Other net gains and losses – These represent profits and losses on the sale of subsidiaries, joint ventures, associates and other financial assets and are excluded from adjusted operating profit in order to show the performance of the Group on a more comparable basis year on year. Other net gains and losses also includes costs related to business closures and acquisitions. Other net gains and losses in the first half of 2025 relate to the gain on disposal of a business in our Higher Education division, a fair value gain relating to a previous disposal and costs relating to prior year acquisitions and disposals. Other net gains and losses in 2024 relate to costs related to prior year acquisitions and disposals, partially offset by a gain on the partial disposal of our investment in an associate.
Property charges – In 2025, a gain of
Adjusted operating profit should not be regarded as a complete picture of the Group's financial performance. For example, adjusted operating profit includes the benefits of major reorganisation programmes but excludes the significant associated costs, and adjusted operating profit excludes costs related to acquisitions, and the amortisation of intangibles acquired in business combinations, but does not exclude the associated revenues. The Group's definition of adjusted operating profit may not be comparable to other similarly titled measures reported by other companies.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
2. Segment information continued
The Group derived revenue from the transfer of goods and services over time and at a point in time in the following major product lines:
all figures in £ millions | Assessment & | Virtual | English Language | Enterprise Learning | Higher | Total | |||||||||
2025 half year | |||||||||||||||
Courseware | |||||||||||||||
Products transferred at a point in time | 24 | - | 55 | 18 | 75 | 172 | |||||||||
Products and services transferred over time | 12 | - | 4 | - | 262 | 278 | |||||||||
36 | - | 59 | 18 | 337 | 450 | ||||||||||
Assessments | |||||||||||||||
Products transferred at a point in time | 86 | - | 4 | 2 | - | 92 | |||||||||
Products and services transferred over time | 680 | - | 91 | 129 | - | 900 | |||||||||
766 | - | 95 | 131 | - | 992 | ||||||||||
Services | |||||||||||||||
Products transferred at a point in time | - | - | 8 | - | - | 8 | |||||||||
Products and services transferred over time | - | 242 | 9 | 21 | - | 272 | |||||||||
- | 242 | 17 | 21 | - | 280 | ||||||||||
Total sales | 802 | 242 | 171 | 170 | 337 | 1,722 | |||||||||
2024 half year1 | |||||||||||||||
Courseware | |||||||||||||||
Products transferred at a point in time | 28 | - | 60 | 22 | 69 | 179 | |||||||||
Products and services transferred over time | 9 | - | 6 | - | 267 | 282 | |||||||||
37 | - | 66 | 22 | 336 | 461 | ||||||||||
Assessments | |||||||||||||||
Products transferred at a point in time | 93 | - | 3 | 3 | - | 99 | |||||||||
Products and services transferred over time | 681 | - | 97 | 120 | - | 898 | |||||||||
774 | - | 100 | 123 | - | 997 | ||||||||||
Services | |||||||||||||||
Products transferred at a point in time | - | - | 12 | - | - | 12 | |||||||||
Products and services transferred over time | - | 254 | 10 | 20 | - | 284 | |||||||||
- | 254 | 22 | 20 | - | 296 | ||||||||||
Total sales | 811 | 254 | 188 | 165 | 336 | 1,754 | |||||||||
1. Comparative amounts have been restated to reflect the move between operating segments. |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
2. Segment information continued
all figures in £ millions | Assessment & | Virtual | English Language | Enterprise Learning | Higher | Total | |||
2024 full year1 | |||||||||
Courseware | |||||||||
Products transferred at a point in time | 56 | - | 142 | 46 | 185 | 429 | |||
Products and services transferred over time | 17 | - | 13 | - | 596 | 626 | |||
73 | - | 155 | 46 | 781 | 1,055 | ||||
Assessments | |||||||||
Products transferred at a point in time | 184 | - | 11 | 5 | - | 200 | |||
Products and services transferred over time | 1,334 | - | 198 | 179 | - | 1,711 | |||
1,518 | - | 209 | 184 | - | 1,911 | ||||
Services | |||||||||
Products transferred at a point in time | - | - | 35 | - | - | 35 | |||
Products and services transferred over time | - | 489 | 21 | 41 | - | 551 | |||
- | 489 | 56 | 41 | - | 586 | ||||
Total sales | 1,591 | 489 | 420 | 271 | 781 | 3,552 | |||
1. Comparative amounts have been restated to reflect the move between operating segments. |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
3. Net finance income / costs
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Net finance costs | (22) | (7) | (31) | |
Net finance income in respect of retirement benefits | (12) | (11) | (21) | |
Interest on deferred and contingent consideration | - | 1 | 2 | |
Fair value movements on investments held at FVTPL | 4 | 8 | 11 | |
Net foreign exchange gains | 3 | - | 3 | |
Fair value movements on derivatives | 3 | (12) | (7) | |
Interest on provisions for uncertain tax positions | - | - | (2) | |
Adjusted net finance costs | (24) | (21) | (45) | |
Analysed as: | ||||
Finance costs | (47) | (57) | (112) | |
Finance income | 25 | 50 | 81 | |
Net finance costs | (22) | (7) | (31) |
Adjusted net finance costs is the finance cost measure used in calculating adjusted earnings. Adjusted net finance costs primarily consists of interest costs related to bonds, the RCF and lease liabilities, partially offset by interest income on cash deposits and lease receivables.
The above table reconciles net finance income to adjusted net finance costs.
Net finance income relating to retirement benefits has been excluded from our adjusted earnings as we believe the income statement presentation does not reflect the economic substance of the underlying assets and liabilities. Also excluded are interest costs relating to acquisition or disposal transactions as it is considered part of the acquisition cost or disposal proceeds rather than being reflective of the underlying financing costs of the Group. Foreign exchange, fair value movements on investments classified as FVTPL and other gains and losses on derivatives are excluded from adjusted earnings as they represent short-term fluctuations in market value and are subject to significant volatility. Other gains and losses may not be realised in due course as it is normally the intention to hold the related instruments to maturity. Interest on certain tax provisions is excluded from our adjusted measure in order to mirror the treatment of the underlying tax item.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
4. Income tax
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Income tax charge | (52) | (54) | (75) | |
Tax on cost of major reorganisation | - | - | 1 | |
Tax on other net gains and losses | 1 | - | - | |
Tax on intangible charges | (5) | (5) | (10) | |
Tax on | - | (1) | (3) | |
Tax on other net finance income | 1 | 4 | 5 | |
Tax amortisation benefit on goodwill and intangibles | 1 | 2 | 4 | |
State Aid provision release | - | - | (63) | |
Movement in provision for tax uncertainties | - | - | 6 | |
Other tax items | - | - | (1) | |
Adjusted income tax charge | (54) | (54) | (136) | |
Adjusted profit before tax | 218 | 229 | 555 | |
Tax rate reflected in statutory earnings | 23.9 % | 25.5 % | 14.7 % | |
Tax rate reflected in adjusted earnings | 24.5 % | 23.6 % | 24.4 % |
The adjusted income tax charge excludes the tax benefit or charge on items that are excluded from the profit or loss before tax (see note 2). The adjusted tax charged in the period ended 30 June 2025 has been calculated by applying management's best estimate of the weighted average annual effective rate of tax which is expected to apply to the Group for the year ended 31 December 2025 to the adjusted profit before tax for the period ended 30 June 2025. Adjusting items have been tax effected on an item by item basis based on the applicable statutory tax rate in the country to which the item relates.
The tax benefit from tax deductible goodwill and intangibles is added to the adjusted income tax charge as this benefit more accurately aligns the adjusted tax charge with the expected rate of cash tax payments.
The statutory tax charge in the period ended 30 June 2025 is lower than the period ended 30 June 2024 due to an impairment reversal which is not taxable.
The Group is within the scope of the
In the first half of 2025, a repayment of
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
5. Earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the company (earnings) by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the company and held as treasury shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to take account of all dilutive potential ordinary shares and adjusting the profit attributable, if applicable, to account for any tax consequences that might arise from conversion of those shares.
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Earnings for the period | 166 | 158 | 435 | |
Non-controlling interest | (2) | (1) | (1) | |
Earnings attributable to equity shareholders | 164 | 157 | 434 | |
Weighted average number of shares (millions) | 661.5 | 680.5 | 673.0 | |
Effect of dilutive share options (millions) | 9.2 | 6.9 | 11.0 | |
Weighted average number of shares (millions) for diluted earnings | 670.7 | 687.4 | 684.0 | |
Earnings per share (in pence per share) | ||||
Basic | 24.8p | 23.1p | 64.5p | |
Diluted | 24.5p | 22.8p | 63.5p |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
6. Adjusted earnings per share
In order to show results from operating activities on a consistent basis, an adjusted earnings per share is presented which excludes certain items as set out below.
Adjusted earnings is a non-GAAP financial measure and is included as it is a key financial measure used by management to evaluate performance and allocate resources to business segments. The measure also enables users of the accounts to more easily, and consistently, track the underlying operational performance of the Group and its business segments over time by separating out those items of income and expenditure relating to acquisition and disposal transactions, major reorganisation programmes and certain other items that are also not representative of underlying performance (see notes 2, 3 and 4 for further information and reconciliation to equivalent statutory measures). The adjusted earnings per share includes both continuing and discontinued businesses on an undiluted basis when relevant. The company's definition of adjusted earnings per share may not be comparable to other similarly titled measures reported by other companies.
all figures in £ millions | note | 2025 | 2024 | 2024 |
half year | half year | full year | ||
Adjusted operating profit | 2 | 242 | 250 | 600 |
Adjusted net finance costs | 3 | (24) | (21) | (45) |
Adjusted income tax | 4 | (54) | (54) | (136) |
Non-controlling interest | (2) | (1) | (1) | |
Adjusted earnings | 162 | 174 | 418 | |
Weighted average number of shares (millions) | 661.5 | 680.5 | 673.0 | |
Weighted average number of shares (millions) for diluted earnings | 670.7 | 687.4 | 684.0 | |
Adjusted earnings per share - basic | 24.5p | 25.6p | 62.1p | |
Adjusted earnings per share - diluted | 24.2p | 25.3p | 61.1p |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
7. Dividends
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Amounts recognised as distributions to equity shareholders in the period | 110 | 107 | 156 |
The directors are declaring an interim dividend of 7.8p per equity share, payable on 15 September 2025 to shareholders on the register at the close of business on 15 August 2025. This interim dividend, which will absorb an estimated
8. Exchange rates
Pearson earns a significant proportion of its sales and profits in overseas currencies, the most important being the US dollar. The relevant rates are as follows:
2025 | 2024 | 2024 | ||
half year | half year | full year | ||
Average rate for profits | 1.31 | 1.26 | 1.28 | |
Period end rate | 1.37 | 1.26 | 1.25 |
9. Non-current intangible assets
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Goodwill | 2,285 | 2,436 | 2,437 | |
Other intangibles | 524 | 614 | 589 | |
Non-current intangible assets | 2,809 | 3,050 | 3,026 |
There were no significant acquisitions or disposals in the first half of 2025 or 2024.
Other movements in the goodwill balance relate to foreign exchange differences. Other movements in the intangibles balance relate to additions, amortisation and foreign exchange differences.
The Group has assessed its remaining goodwill and intangibles for impairment triggers and concluded that a full goodwill impairment review is not required at 30 June 2025.
The 2024 Annual Report sets out the key assumptions by segment. The discount rate, perpetuity growth rate and other assumptions used in the impairment review, and the sensitivity to changes in those assumptions remain broadly the same as the position outlined in the 2024 Annual Report.
There were no impairments to acquisition related or other intangibles in the first half of 2025 or 2024.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
10. Net debt
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
Non-current assets | ||||
Derivative financial instruments | 16 | 4 | 20 | |
Trade and other receivables – investment in finance lease | 55 | 73 | 64 | |
Current assets | ||||
Derivative financial instruments | 38 | 55 | 31 | |
Trade and other receivables – investment in finance lease | 19 | 19 | 19 | |
Cash and cash equivalents (excluding overdrafts) | 347 | 332 | 543 | |
Non-current liabilities | ||||
Borrowings | (1,426) | (1,300) | (1,157) | |
Derivative financial instruments | (3) | (3) | (4) | |
Current liabilities | ||||
Borrowings | (62) | (313) | (315) | |
Derivative financial instruments | (11) | (44) | (54) | |
Net debt | (1,027) | (1,177) | (853) |
Included in borrowings at 30 June 2025 are lease liabilities of
In 2025, the movement on borrowings from 31 December 2024 primarily reflects the repayment of the
For the purposes of the cash flow statement, cash and cash equivalents are presented net of overdrafts of £nil (at 30 June 2024: £nil; 31 December 2024: £nil) which are repayable on demand. These overdrafts are excluded from cash and cash equivalents disclosed on the balance sheet.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
11. Classification of assets and liabilities measured at fair value
---Level 1--- | Level 2 | ---Level 3--- | Total fair value | |||||
all figures in £ millions | FVOCI Investments | FVTPL – Cash and | Derivatives | FVOCI Investments | FVTPL– Investments | |||
2025 half year | ||||||||
Investments in listed and unlisted securities | 1 | - | - | 23 | 102 | 126 | ||
Cash and cash equivalents | - | 37 | - | - | - | 37 | ||
Derivative financial instruments | - | - | 54 | - | - | 54 | ||
Deferred and contingent consideration | - | - | - | - | 12 | 12 | ||
Total financial assets held at fair value | 1 | 37 | 54 | 23 | 114 | 229 | ||
Derivative financial instruments | - | - | (14) | - | - | (14) | ||
Deferred and contingent consideration | - | - | - | - | (1) | (1) | ||
Total financial liabilities held at fair value | - | - | (14) | - | (1) | (15) | ||
2024 half year | ||||||||
Investments in listed and unlisted securities | - | - | - | 26 | 115 | 141 | ||
Cash and cash equivalents | - | 42 | - | - | - | 42 | ||
Derivative financial instruments | - | - | 59 | - | - | 59 | ||
Deferred and contingent consideration | - | - | - | - | 12 | 12 | ||
Total financial assets held at fair value | - | 42 | 59 | 26 | 127 | 254 | ||
Derivative financial instruments | - | - | (47) | - | - | (47) | ||
Deferred and contingent consideration | - | - | - | - | (21) | (21) | ||
Total financial liabilities held at fair value | - | (47) | - | (21) | (68) | |||
2024 full year | ||||||||
Investments in listed and unlisted securities | 6 | - | - | 22 | 113 | 141 | ||
Cash and cash equivalents | - | 62 | - | - | - | 62 | ||
Derivative financial instruments | - | - | 51 | - | - | 51 | ||
Deferred and contingent consideration | - | - | - | - | 12 | 12 | ||
Total financial assets held at fair value | 6 | 62 | 51 | 22 | 125 | 266 | ||
Derivative financial instruments | - | - | (58) | - | - | (58) | ||
Deferred and contingent consideration | - | - | - | - | (1) | (1) | ||
Total financial liabilities held at fair value | - | - | (58) | - | (1) | (59) | ||
Level 1 valuations are based on unadjusted quoted prices in active markets for identical financial instruments. Cash and cash equivalents include money market funds which are treated as FVTPL under IFRS 9 with the fair value movements recognised as finance income or cost.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
11. Classification of assets and liabilities measured at fair value continued
The fair values of level 2 assets and liabilities are determined by reference to market data and established estimation techniques such as discounted cash flow and option valuation models. Within level 3 assets, the fair value of our investments in unlisted securities are determined by reference to the financial performance of the underlying asset and amounts realised on the sale of similar assets. Individually these assets are immaterial and therefore no sensitivities have been disclosed.
Level 3 assets also include the contingent consideration receivable in respect of the sale of the POLS business, which comprises a
The movements in fair values of level 3 financial assets measured at fair value, being principally the investments in unlisted securities and contingent consideration receivable, are shown in the table below. There have been no transfers in classification during 2025. In the second half of 2024, one of the investments held was listed, and therefore the investment of
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
At beginning of period | 147 | 155 | 155 | |
Exchange differences – OCI | (9) | 1 | 2 | |
Additions | 5 | 9 | 9 | |
Disposals and repayments | (1) | - | - | |
Reclassification out of level 3 | - | - | (6) | |
Fair value movements – Finance costs | (4) | (8) | (11) | |
Fair value movements – Other net gain and losses | 2 | - | - | |
Fair value movements – OCI | (3) | (4) | (2) | |
At end of period | 137 | 153 | 147 |
The movement in the total fair value of the total deferred and contingent consideration payable measured at fair value or amortised cost is shown in the table below. At 30 June 2025, this comprised
all figures in £ millions | 2025 | 2024 | 2024 | |
half year | half year | full year | ||
At beginning of period | (22) | (57) | (57) | |
Exchange differences | 1 | (1) | - | |
Acquisitions | - | - | (1) | |
Fair value movements – Income Statement | - | (1) | (2) | |
Repayments | 4 | 38 | 38 | |
At end of period | (17) | (21) | (22) |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
11. Classification of assets and liabilities measured at fair value continued
The market value of the Group's bonds is
12. Cash flows
Operating cash flow and free cash flow are non-GAAP measures and have been disclosed as they are part of the Group's corporate and operating measures. These measures are presented in order to align the cash flows with corresponding adjusted profit measures. The table below reconciles the statutory profit and cash flow measures to the corresponding adjusted measures. The table on the next page reconciles operating cash flow to free cash flow to net debt.
all figures in £ millions | Statutory | Cost of major | Property | Other net gains |
| Intangible | Purchase/disposal of PPE | Net addition of right | Dividends from | Adjusted | |||||||||||||||||||
2025 half year | |||||||||||||||||||||||||||||
Operating | 240 | - | (11) | (7) | - | 20 | - | - | - | 242 | Adjusted | ||||||||||||||||||
Net cash generated | 188 | - | - | 9 | - | - | (59) | (12) | - | 126 | Operating cash | ||||||||||||||||||
2024 half year | |||||||||||||||||||||||||||||
Operating profit | 219 | - | - | 6 | 5 | 20 | - | - | - | 250 | Adjusted | ||||||||||||||||||
Net cash generated | 185 | 5 | - | 3 | - | - | (52) | (12) | - | 129 | Operating cash | ||||||||||||||||||
2024 full year | |||||||||||||||||||||||||||||
Operating profit | 541 | (2) | - | 7 | 13 | 41 | - | - | - | 600 | Adjusted | ||||||||||||||||||
Net cash generated | 811 | 8 | - | 5 | - | - | (118) | (46) | 2 | 662 | Operating cash | ||||||||||||||||||
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
12. Cash flows continued
all figures in £ millions | note | 2025 | 2024 | 2024 |
half year | half year | full year | ||
Reconciliation of operating cash flow to closing net debt | ||||
Operating cash flow | 126 | 129 | 662 | |
Tax received / (paid) | 35 | (69) | (119) | |
Net finance costs paid | (5) | (28) | (45) | |
Cost paid for major reorganisation | - | (5) | (8) | |
Free cash flow | 156 | 27 | 490 | |
Dividends paid (including to non-controlling interest) | (110) | (107) | (156) | |
Net movement of funds from operations | 46 | (80) | 334 | |
Acquisitions and disposals | (9) | (54) | (58) | |
Net equity transactions | (227) | (313) | (351) | |
Other movements on financial instruments | 16 | 14 | (34) | |
Movement in net debt | (174) | (433) | (109) | |
Opening net debt | (853) | (744) | (744) | |
Closing net debt | 10 | (1,027) | (1,177) | (853) |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 30 June 2025
13. Contingencies, tax uncertainties and other liabilities
There are Group contingent liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group.
The Group is under assessment from the tax authorities in
14. Related parties
Related party transactions in the six months ended 30 June 2025 were substantially the same in nature to those disclosed in note 36 of the Annual Report and Accounts for the year ended 31 December 2024. All related party transactions are on an arm's length basis. There were no other material related party transactions in the period that have materially affected the financial position or performance of the Group and no guarantees have been provided to related parties in the year.
15. Events after the balance sheet date
On 24 July 2025, the Group completed the acquisition of
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that these condensed consolidated financial statements have been prepared in accordance with
- An indication of important events that have occurred during the first six months and their impact on the condensed consolidated financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- Material related party transactions in the first six months and any material changes in related party transactions described in the 2024 Annual Report.
The directors of Pearson plc are listed in the 2024 Annual Report. There have been the following changes to the Board since the publication of the Annual Report.
Arden Hoffman – appointed 1 June 2025
A list of current directors is maintained on the Pearson plc website: www.pearsonplc.com.
By order of the Board
Omar Abbosh
Chief Executive
31 July 2025
Sally Johnson
Chief Financial Officer
31 July 2025
INDEPENDENT REVIEW REPORT TO PEARSON PLC
Independent Review Report on the condensed consolidated interim financial statements
Conclusion
We have been engaged by Pearson plc (the Company) to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidate cash flow statement and the explanatory notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the
In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (
Ernst & Young LLP
31 July 2025
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SOURCE Pearson
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