01 March 2024 , 12:35
628
0
Education giant Pearson has announced a rise in profits and is looking forward to opportunities in Artificial Intelligence (AI).
The company's shares went up on Friday morning when it revealed plans to buy back £200 million of shares from investors. Pearson, which has moved from traditional textbooks to digital training, reported a big increase in operating profit to £498 million in 2023, up from £271 million the previous year, thanks to lower restructuring costs.
Omar Abbosh, who became chief executive in January after leaving Microsoft, said this was helped by growth in its assessment and qualifications department and he pointed out the potential benefits from AI. He said: "Pearson is well positioned today, providing a stable platform for continued growth that can benefit from the inflection point we see with the development of AI."
"I am optimistic about the opportunities this advancement in technology brings, underpinned by our trusted brand, large high-quality data sets and strong capabilities in assessment, content and services."
The company told shareholders that overall sales fell over the year to £3. 67 billion from £3.84 billion in 2022, partly due to changes to its portfolio and currency movements. However, it highlighted that underlying sales rose by 5%, boosted by 7% growth in its assessments and qualifications business, with improvements in healthcare and IT.
Nursery apologises after child with Down's syndrome ‘treated less favourably’
However, Pearson's virtual learning arm experienced a 20% drop in sales due to the earlier loss of a contract. Mr Abbosh added: "2023 was another year of strong operational and financial performance, with results surpassing initial expectations once again, driven by our Assessment & Qualifications and English Language Learning businesses."
He added: "Our consistently strong cash generation has sustained investment to support our future growth and deliver ongoing value for shareholders."