Pearson PLC (LSE:PSON) raised its interim dividend as the education specialist reported improved sales across all arms of its business in its latest half-year.
Sales rose to 7% to £1.6bn in the six months to end June 2021 led by online education, which continued to grow strongly helped by demand from US virtual schools.
Exam testing also bounced back 34% as schools and centres reopened after Coronavirus (COVID-19) closed them last year.
North American courseware was helped by Canada while international sales rose by 8% as overseas schools and bookstores opened their doors again.
Underlying profits also recovered with Pearson making £127mln in the six months to end June 2021, compared to a loss of £23mln a year ago.
Statutory profits fell to £9mln (£107mln) as a year ago Pearson had the benefit of the sale of Penguin Random House.
Andy Bird, chief executive, said Pearson had made good strategic, operational and financial progress in the first half with the better sales and revenue reflecting a strong rebound from 2020.
Bird also flagged the launch of Perason+, an app for US college students, which he said was a key milestone in its direct-to-consumer strategy.
The app enables a direct relationship with students, strengthens Pearson’s position in the secondary market and comes with flexible subscription plans, he added.
Elsewhere, Pearson said it has now implemented its restructuring into five divisions, while a strategic review of international courseware is underway.
Second-half trading is broadly consistent with guidance, it added with underlying profit to be in line with market expectations.
The interim dividend rises by 5% to 6.3p, with net debt at the end of the period down to £646mln from £942mln.