Pearson PLC (LSE:PSON) reported strong financial results for the first half of the year, surpassing market expectations with a 44% growth in profit.
However, the fact the education group kept full-year forecasts intact (rather than upgrading them) left investors cold. The shares marked time in the first hour of trade at 863.4p.
The company's adjusted operating profit for the six months ending June 30, 2023, reached £250mln, of which almost £60mln came from a cost savings program.
The demand for English language learning, exams, and qualifications was a significant driver of the company's success.
Sales related to English learning and tests saw a notable increase, with test volumes rising by 76%.
Pearson anticipates further growth in this area, particularly in Canada. Additionally, sales of assessments and qualifications for the healthcare and I.T. sectors also experienced growth.
Looking ahead, Pearson remains confident in achieving its annual and mid-term targets. The company expects its adjusted operating profit to reach £568mln, in line with consensus forecasts.