Pearson, the world's largest educational publisher, reported a 23% rise in annual pre-tax profits on a strong year of textbook sales and expected to outpace rivals again in 2006, even as growth slows.
Pearson, which also publishes general-interest books at its Penguin unit and the Financial Times newspaper, said today that its adjusted pre-tax profit was £422m sterling on revenue of £4.096 billion, narrowly topping expectations.
The company said it expects to best its rivals in the education market again with 3-5% sales growth in 2006, while the Financial Times, which Pearson has been under steady pressure from investors to sell, has raced to advertising growth of 12% so far this year.
Penguin is expected to match 2005 growth rates, when sales were up 1% and operating profit gained 4%, with margins improving steadily.
'We expect 2006 to be another good year for Pearson as we continue to increase margins and grow ahead of our markets,' the company said in a statement.
Pearson's schools unit grew by 16% on an underlying basis in 2005 to £1.3 billion in what was a big year for US states to order new materials. Professional testing was up 15%, and higher education gained by 5%.
The Financial Times returned to profitability in 2005 for the first time since 2001 despite the departure of its editor in November and persistent speculation that Pearson might sell it.
