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Shares in education and publishing company Pearson (LON:PSON) jumped at market open on Friday, after a positive first quarter trading update showed progress in the company’s restructuring plan.
The company confirmed that it had removed more than £650 million of cost through its two significant restructuring programs over the last four years, and simplified the company considerably. The company has undergone a radical restructuring process over the last four years, divesting of its interests in the Financial Times and The Economist, and announcing its intention to sell a 47 percent stake in Penguin Random House.
Pearson also reported a pickup in sales in the first quarter of the year, with total sales in increasing by 6 percent in underlying terms. In North America, revenues grew 7 percent and in its core markets, including the UK, Italy and Australia, revenues grew 10 percent.
However, Pearson did add that “the underlying market pressures we have previously described in this business are still expected to impact gross sales primarily in the second half”, confirming that their outlook for the full year 2017 remains unchanged.
“Our guidance range remains for operating profit in 2017 of £570 million to £630 million, adjusted earnings per share of 48.5p to 55.5p and cash conversion in excess of 90 percent”, the company said.
Shares in Pearson are currently trading up 14.41 percent at 755.00 (0839GMT).