1st August
2025
|
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
|
+2% 1
|
Operating profit
|
240
|
219
|
|
Operating cash flow
|
126
|
£(3)m
|
Profit for the period
|
166
|
158
|
|
Free cash flow
|
156
|
+£129m
|
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:
|
|
|
o
|
Strategic partnerships with Microsoft, AWS, and most recently,
Google Cloud, progressing AI transformation
agenda (link
here);
|
|
o
|
Enterprise business building momentum, with new partners such as
HCLTech (link here);
|
|
o
|
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);
|
|
o
|
Accelerating access to adjacent markets, with a strategic
collaboration with McGraw Hill in formative
assessments (link here);
|
|
o
|
Completed the acquisition of eDynamic Learning, adding a core
pillar to our Early Careers strategy (link here).
|
●
|
Assessment
& Qualifications sales were up 2% with strong growth in
Clinical Assessments and UK & 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 increased 5% 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 of 21%
and US digital subscriptions of 3%. 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
at 14% (H1 2024: 14%).
|
●
|
Adjusted
net finance costs increased to £24m (H1 2024: £21m). The
effective tax rate on adjusted profit before tax increased to 24.5%
(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 £0.2bn to £1.0bn at 30th June 2025 (H1
2024: £1.2bn) 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 representing 48% of the
total programme.
|
●
|
Secured
new three-year, $800m revolving credit facility, enhancing our
liquidity and strategic flexibility.
|
●
|
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, enabling us to broaden
capabilities and scale our position in the fast-growing Early
Careers space.
|
●
|
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% to 100%, on average, across the period.
|
Investor Relations
|
Alex
Shore
Steph
Crinnegan
|
+44
(0) 7720 947 853
+44
(0) 7780 555 351
|
|
Gemma
Terry
Brennan
Matthews
|
+44
(0) 7841 363 216
+1
(332) 238-8785
|
Media
Teneo
Pearson
|
Ed
Cropley
Laura
Ewart
|
+44
(0) 7492 949 346
+44
(0) 7798 846 805
|
Results event
|
Pearson's Interim Results presentation will be held today at 08:30
(BST). Register
to join session virtually (link here).
|
|
£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%
|
Underlying Sales growth
|
Group
|
In line with market expectations4 with 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.£65m.
|
|
Tax rate
|
We expect the effective tax rate on adjusted profit before tax to
be between 24% and 25%.
|
|
Cash flow
|
We expect a free cash flow conversion5 of
90-100% plus the £0.1bn State Aid repayment which was received
in full during Q1 2025.
|
|
FX
|
Every 1c movement in GBP:USD rate equates to approximately £5m
adjusted operating profit impact.
|
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
|
|
|
|
|
|
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: UK pension discretionary increase
|
|
-
|
5
|
13
|
Add
back: Other net gains and losses
|
|
(7)
|
6
|
7
|
Add
back: Property charges
|
|
(11)
|
-
|
-
|
Adjusted
operating profit
|
|
242
|
250
|
600
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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
|
|
|
|
|
||||||||
|
Equity
attributable to equity holders of the company
|
|
|
||||||||
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
|
all figures in £ millions
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
all figures in £ millions
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|||||||
|
Equity
attributable to equity holders of the company
|
|
|
|||||||
|
Share
capital
|
Share
premium
|
Treasury
shares
|
Capital
redemption reserve
|
Fair
value reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interest
|
Total
equity
|
all figures in £ millions
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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
|
|
|
|
|
|
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
|
|
|
|
|
|
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)
|
UK
pension discretionary increases
|
|
-
|
(5)
|
(13)
|
Other
net gains and losses
|
|
7
|
(6)
|
(7)
|
Property
charges
|
|
11
|
-
|
-
|
Operating
profit
|
240
|
219
|
541
|
|
|
Assessment &
Qualifications
|
Virtual
Learning
|
English
Language
Learning
|
Enterprise
Learning
and
Skills
|
Higher
Education
|
Total
|
|||||||
all figures in £ millions
|
|
|
|
|
|
|
|
|||||||
|
|
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
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment &
Qualifications
|
Virtual
Learning
|
English
Language Learning
|
Enterprise Learning
and Skills
|
Higher
Education
|
Total
|
||
all figures in £ millions
|
|
|
|
|
|
|
|
||
|
|
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
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
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
UK pension discretionary increases
|
|
-
|
(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%
|
|
|
|
|
|
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
|
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
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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
|
|
|
|
|
|
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)
|
|
---Level
1---
|
Level
2
|
---Level
3---
|
Total
fair value
|
|||
all figures in £ millions
|
FVOCI
Investments
|
FVTPL -
Cash
and
cash equivalents
|
Derivatives
|
FVOCI
Investments
|
FVTPL-
Investments and Other
|
||
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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)
|
all figures in £ millions
|
Statutory
measure
|
Cost of
major reorganisation
|
Property
charges
|
Other
net gains and losses
|
UK
pension discretionary increases
|
Intangible
charges
|
Purchase
/ disposal of PPE and software
|
Net
addition of right of use assets
|
Dividends
from joint ventures and associates
|
Adjusted
measure
|
|
|
|||
|
|
|
|
|
2025 half year
|
||||||||||
Operating
profit
|
240
|
-
|
(11)
|
(7)
|
-
|
20
|
-
|
-
|
-
|
242
|
Adjusted
operating profit
|
||||
Net
cash generated from operations
|
188
|
-
|
-
|
9
|
-
|
-
|
(59)
|
(12)
|
-
|
126
|
Operating
cash flow
|
||||
|
|
|
|
|
2024 half year
|
||||||||||
Operating
profit
|
219
|
-
|
-
|
6
|
5
|
20
|
-
|
-
|
-
|
250
|
Adjusted
operating profit
|
||||
Net
cash generated from operations
|
185
|
5
|
-
|
3
|
-
|
-
|
(52)
|
(12)
|
-
|
129
|
Operating
cash flow
|
||||
|
|
|
|
|
2024 full year
|
||||||||||
Operating
profit
|
541
|
(2)
|
-
|
7
|
13
|
41
|
-
|
-
|
-
|
600
|
Adjusted
operating profit
|
||||
Net
cash generated from operations
|
811
|
8
|
-
|
5
|
-
|
-
|
(118)
|
(46)
|
2
|
662
|
Operating
cash flow
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
PEARSON
plc
|
|
|
Date: 01
August 2025
|
|
|
By: /s/
NATALIE WHITE
|
|
|
|
------------------------------------
|
|
Natalie
White
|
|
Deputy
Company Secretary
|