Pearson PLC (LON:PSON) has persevered with its dividend even though the educational publishing group swung to an underlying half-year loss after the closure of schools and test centres due to the coronavirus (COVID-19) pandemic.
The FTSE 100-listed firm, which said it is still searching for a new chief executive seven months after John Fallon announced his retirement plans, saw sales decrease by 18% to £1.5bn in the first six months of the year.
Global Online Learning growth of 5% was more than offset by a 27% decline in Global Assessment, a 23% decline in the International segment and a 14% decline in North American Courseware.
The impact of COVID-19 on sales was put at around £260mln in the period, with underlying sales trends improving from a 35% decline in April, 32% in May and 19% in June.
An adjusted operating loss of £23mln was reported, sliding from last year’s £144mln profit, though at the statutory level the group made an operating profit of £107mln largely due to a gain on the sale of its last remaining stake in Penguin Random House.
The interim dividend was maintained at 6p per share, despite a cash outflow during the period.
In the results statement, Pearson chief executive Fallon said the board was “encouraged by the improving trends and pick up in sales in June” and felt “the long-term shift to online learning is accelerating”.
However, the outlook is difficult to assess amid the uncertain impact of COVID-19 on schools and colleges, the company added.
Pearson shares were down 4% to 528.6p in early trade on Friday.