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
- 1 VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
- 3 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 4 Chaos breaks out in courtroom as father attacks killer of three-year-old daughter
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
VMAs 2015: Was Nicki Minaj and Miley Cyrus' awkward acceptance put-down real or staged?
Bank Holiday Monday opening times: Are Tesco, Asda and other supermarkets open today?
The nine most warmongering countries in the world revealed
Isis releases graphic video showing four Shia 'spies' being burned alive in Anbar, Iraq
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...