Pearson upbeat on strong US returns

PUBLISHING group Pearson, owner of the Financial Times and Penguin Books, expects further growth this year after unveiling better-than-expected figures for 2009.

Tough conditions in some of its markets were offset by strong growth in Pearson's North American education arm, which is its biggest business.

Group sales, earnings per share and operating profit for 2009 all beat forecasts. Pre-tax profits rose to 660 million, up from 585m on sales up by 16.6 per cent to 5.6 billion. However, profits at the FT Group fell by 4 per cent to 187m and by 10 per cent to 84m at publisher Penguin.

Although Pearson said that it expected some of its sectors would remain subdued throughout this year, it predicted another year of underlying profit growth at group level.

Charles Stanley analyst Sam Hart said Pearson's position as the world's largest education publisher meant it was well placed to benefit from structural, long-term growth in the industry.

"The FT Group should also start to benefit from cyclical recovery in advertising in the medium term," he added.

Pearson invested 500m in its education businesses as it took advantage of the poor economic climate to grow its market share.

The dividend was increased by 5 per cent, representing the 18th year of increasing the payout above the rate of inflation.

Shares in the company closed at 956p yesterday, up by 4.82 per cent.