UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2005
PEARSON plc
(Exact name of registrant as specified in its charter)
N/A
(Translation of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address of principal executive office)
Indicate by check mark whether the Registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
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This Report includes the following documents:
1. A press release from Pearson plc announcing AGM Statement
29 April 2005
Pearson: AGM trading update
Pearson, the international media and education company, is today providing a
trading update at its Annual General Meeting.
Our businesses have made a good start to the year and are trading in line with
our expectations. We generate most of our sales and almost all of our profits in
the second half, but we continue to expect Pearson to grow strongly in 2005 and
beyond, with further progress on earnings, cash and return on invested capital.
Dennis Stevenson, Pearson's chairman, said:
"Our businesses have excellent prospects both this year and beyond. We have
reduced our costs by close to GBP400 million and invested behind the long-term
strength of our franchises. Rapid growth in US education is now under way, we
are seeing early signs of the long-awaited recovery in corporate advertising and
we are confident of strong growth on our financial measures."
We expect 2005 to be a very strong year for Pearson Education.
Our School business is benefiting from a sharp rebound in the US school textbook
market, as state and federal education funds increase and as the new adoption
market opportunity grows to approximately $900m in 2005 (from $500m in 2004). We
are performing well in textbook adoptions, particularly with our new programmes
in maths, science, music and foreign languages, and continuing to see strong
trading conditions in open territories. Our US school testing business is
growing rapidly as it helps states meet new federal testing requirements, and
the state of Texas, our largest customer, intends to renew our contract for a
further five years. We expect our US school textbook and testing businesses to
grow sales in double digits this year and improve margins steadily over the next
three years.
In US Higher Education we are once again performing ahead of the overall market.
For the full year we expect to grow at a similar rate to 2004, as we continue to
benefit from our lead in publishing, technology and customisation. We are
working with DeVry University to create a customised print and online maths
programme for its 63 college campuses serving some 40,000 students in our
largest ever adoption in higher education.
We continue to expect good growth in our Professional businesses as they benefit
from long-term testing and government contracts. In addition to the $500m of new
contracts won in 2004, in February we renewed and extended our largest
government contract, with the US Department of Education, for a further ten
years.
We expect a further significant profit improvement at the FT Group. IDC, our
financial data business, is benefiting from strong growth and high renewal rates
in its institutional business and from the contribution of FutureSource,
acquired in September 2004. IDC remains on target to achieve service revenue and
net income growth in the high single digit to low double digit range for 2005.
Our network of business newspapers - which includes the Financial Times, Les
Echos, FT Deutschland, Investors Chronicle and our interests in Vedomosti,
Business Day, Financial Mail and The Economist - returned to profit last year
and we expect further progress in 2005. Advertising revenues at the Financial
Times are ahead 3% in the year to date with continuing strong growth in
recruitment, luxury goods and online advertising, and forward bookings are
running ahead of last year. If advertising revenues continue to grow at this
rate, we expect the Financial Times to be around breakeven this year and to
improve profits further in 2006. We received cash proceeds of GBP372m from the
sale of our 79% stake in Recoletos on 8 April 2005.
After a difficult 2004, Penguin is now trading in line with our expectations.
Our UK warehouse is operating well and we are on track to move Pearson
Education's UK distribution into the warehouse in the summer. Penguin is
performing well on the bestseller lists in the US and the UK and has a strong
publishing schedule for the second half of the year. Our cost reduction
programme is proceeding according to plan and we will expense approximately
GBP5m on those cost actions this year, which will fall in the first half.
Pearson generates around two-thirds of total revenues in the US. A five cent
change in the average exchange rate for the full year (which in 2004 was GBP1:
$1.83) will have an impact of approximately 1p on adjusted earnings per share.
For the year to date, our average exchange rate is GBP1:$1.90.
Pearson will report its interim results on Monday 25 July 2005. On Wednesday 4
May we will publish further details of the transition to International Financial
Reporting Standards, including our financial statements for 2003 and 2004 under
IFRS.
Note to editors: Pearson's AGM takes place today at the Queen Elizabeth II
Conference Centre, Broad Sanctuary, London SW1P 3EE at 12 noon.
For more information: Luke Swanson/ Charlotte Elston + 44(0) 20 7010 2310
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PEARSON plc
Date: 29 April, 2005
By: /s/ STEPHEN JONES
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Stephen Jones
Deputy Secretary