Profits at Pearson tumble to pounds 50.5m
Saturday 19 August 1995
Lord Blakenham, chairman, said the figures underlined the costs of a rapid evolution toward becoming a media group, and added that restructuring had slowed down the rate of profit growth.
Pre-tax profits were down 27 per cent to pounds 50.5m like for like in the first half, on turnover up 20 per cent to pounds 780.9m. The company blamed restructuring charges, poor trading conditions in educational publishing and a lower-than-expected contribution from Mindscape, the CD-Rom software company on which Pearson is pinning much of its multi-media hopes.
Restructuring at the FT group, which publishes the Financial Times, also hit operating performance in the first half. The closure of the FT's London print works cost pounds 6.5m in redundancy payments; another pounds 29m was charged as a non-operational item.
James Joll, finance director, warned that peformance in the second half was difficult to predict, particularly in the eduational market in the US. "In this market, lead times have become shorter and consumers are less predictable. It is difficult to establish a trend."
Penguin, the publisher, had what Lord Blakenham called a "roller-coaster ride," but a sales promotion linked to the company's 60th anniversary was expected to bolster operations.
The television side, including both Grundy Worldwide and Thames Television, generated operating profits of pounds 12.3m, up from pounds 8.8m a year earlier. Another pounds 25.1m came from Pearson's stake in BSkyB, most of which the company intends to sell through a secondary offering next month.
Comment, page 17
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Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
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