Widespread adoption of advanced technologies makes tech skills essential in all sectorsCEOs and CHROs need to rethink workforce and skilling strategiesHealthcare sector booming as population agesHOBOKEN, N.J., Oct. 21, 2024 /PRNewswire/ -- Pearson (FTSE: PSON.L), the world's lifelong learning company, today launched the Skills Map of the United States, an in-depth analysis of the American job market through 2028. The report projects 1.9 million new jobs will be created through 2028, even as automation, AI a ...

Dublin, Oct. 17, 2024 (GLOBE NEWSWIRE) -- The "School Assessment Tools Market by Product, Level - Global Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering. The School Assessment Tools Market grew from USD 10.44 billion in 2023 to USD 11.38 billion in 2024. It is expected to continue growing at a CAGR of 10.07%, reaching USD 20.44 billion by 2030. School assessment tools encompass a broad range of products and platforms designed to evaluate, measure, and enhance student learning, ...

Tim Pearson will manage state and local regulatory and government relations, and community affairs Mike Callahan will become senior vice president and treasurer GREENVILLE, S.C., Oct. 16, 2024 /PRNewswire/ -- Duke Energy today announced that Tim Pearson will become South Carolina state president, effective Nov. 1. He will succeed Mike Callahan, who has been promoted to senior vice president and treasurer of the company following the retirement of Karl Newlin. Pearson, 42, will manage state and local regulat ...

Core Insights - Pearson and Degreed are expanding their partnership to enhance workforce skills in the AI era, focusing on long-term business resilience [1][4] - The integration of Faethm data sets into the Degreed Skills dashboard will provide real-time insights into relevant skills across industries, allowing organizations to benchmark and identify skill gaps [2][4] - This collaboration aims to drive productivity and innovation through targeted training programs aligned with strategic goals, ensuring a competitive edge in a changing marketplace [3][4] Company Overview - Pearson is committed to helping individuals and organizations prepare for the future of work through its Workforce Skills division, which includes digital credentialing and strategic workforce planning solutions [5] - Degreed offers a leading enterprise learning platform that enables organizations to develop a skill-driven workforce, emphasizing the importance of personalized learning experiences [7]

Financial Performance - Revenue reached £1,754 million, reflecting a 2% underlying increase [5] - Adjusted operating profit increased by 4% underlying to £250 million [5] - Operating cash flow increased by £50 million to £129 million [5] - Free cash flow increased by £77 million to £27 million [5] - Interim dividend increased by 6% to 74p [5] Segment Performance - Assessment & Qualifications sales increased by 2% underlying to £811 million [8] - Virtual Learning sales decreased by 8% underlying to £254 million [8] - Higher Education sales decreased by 2% underlying to £358 million [8] - English Language Learning sales increased by 11% to £188 million [8] - Workforce Skills sales increased by 6% to £143 million [8] Strategic Initiatives - Pearson+ registered users reached 50 million, with 1107k cumulative paid subscriptions [8] - The company is targeting a mid-single digit underlying sales CAGR [21] - The company is targeting an average margin growth of 40 bps p a beyond 2025 [21] - The company is targeting 90 –100 % free cash conversion [21]

Financial Data and Key Metrics - Underlying sales excluding OPM increased by 2%, and adjusted operating profit rose by 4% to £250 million in H1 2024 [27] - Earnings per share remained flat at 25.6p, with higher net interest costs offset by the impact of the reduced share count due to the share buyback [27] - Operating cash flow increased by £50 million YoY, and free cash flow rose by £77 million, driven by strong underlying fundamentals and the phasing out of reorganization costs [28] - Net debt stood at £1.2 billion as of June 2024, up £0.3 billion YoY, primarily due to the £500 million share buyback and dividends, partially offset by strong free cash flow [29] - The interim dividend was proposed to increase by 6% to 7.4p, reflecting strong performance and confidence in the outlook [29] Business Line Performance - **Assessments and Qualifications**: Grew by 2%, driven by growth in VUE, clinical, and UK/International Qualifications, partially offset by a small decline in US student assessments [30] - **Virtual Schools**: Sales declined by 1% due to previously announced contract losses, but the division is expected to return to growth in 2025 [31] - **Virtual Learning**: Sales decreased by 8%, mainly due to the final portion of the OPM ASU contract in H1 2023 [32] - **Higher Education**: Sales declined by 2%, but there are encouraging signs of progress with small market share gains and growth in core text units, US digital subscriptions, and Inclusive Access [33] - **English Language Learning**: Grew by 11%, driven by strong growth in Institutional and Mondly, offsetting a decline in PTE sales [36] - **Workforce Skills**: Grew by 6%, with strong performances in Vocational Qualifications, GED, and Credly [38] Market Performance - **Higher Education**: Expected to return to growth in H2 2024, with Pearson+ performing well, reaching 5 million registered users and 1.1 million paid subscriptions, representing 18% growth [34] - **English Language Learning**: Market share gains in PTE despite a declining market, with expectations of high single-digit sales growth for the division [37] - **Workforce Skills**: Strong growth in Vocational Qualifications and GED, with a focus on expanding enterprise solutions [38] Strategic Direction and Industry Competition - The company is focusing on two powerful secular trends: demographic shifts and the growth of AI, which are expected to drive demand for verified skills and talent management [46] - Pearson is targeting higher-growth markets worth $80 billion, growing at 5% or more, compared to its current $15 billion markets growing at 2% [47][51] - The company is transitioning from a holding company to an operating company, with a focus on organic growth, execution, and strategic partnerships [48][49] - AI is a key strategic priority, with investments in AI-driven product innovation and customer service enhancements [57][58] Management Commentary on Operating Environment and Future Outlook - Management is confident in achieving mid-single-digit underlying sales growth and sustained margin improvement, with a focus on Assessments and Verifications, Early Careers, and Enterprise Skills [76][77] - The company expects to maintain strong free cash flow conversion in the range of 90% to 100% and a net debt-to-EBITDA ratio of around 2x [78] - AI is seen as a tool to accelerate value and growth, with significant potential for cost savings and productivity improvements [57][58] Other Important Information - The company has identified opportunities for cost savings through technology-enabled initiatives, including AI, which are expected to unlock tens of millions of pounds in savings over the medium term [80] - Pearson is focusing on strategic partnerships and M&A to accelerate growth, with a disciplined approach to capital allocation [84][85] Q&A Session Summary Question 1: Growth Guidance and Restructuring Costs - The company clarified that the 2% growth figure refers to its core markets, while the mid-single-digit growth target is driven by higher-growth adjacent markets [104][105] - Restructuring costs will be reported above the line, with savings expected to materialize within six months to a year [110][111] Question 2: Higher Education and ELL Performance - Higher Education is expected to return to growth in H2 2024, driven by improved sales operations and product stability [116][117] - In ELL, the company is confident in maintaining high single-digit growth, with strong performance in Institutional and Mondly offsetting PTE declines [128][129] Question 3: Cost Savings and Market Share - The company is leveraging AI and technology to drive cost savings, particularly in customer services and content generation [134][138] - Market share analysis shows significant growth potential in higher-growth segments, with a focus on expanding into $80 billion markets [144][145] Question 4: Revenue Synergies and Workforce Skills - The company sees significant opportunities for revenue synergies through bundling and cross-selling, particularly in Assessments and Verifications [153][154] - Workforce Skills is focused on talent planning, sourcing, and development, with a modular approach to solutions [159][160] Question 5: AI and Strategic Partnerships - AI is seen as a key driver of adoption and engagement, with significant potential to enhance the learning experience [167][168] - The company is open to strategic partnerships, particularly in AI and technology, to accelerate innovation and growth [190][191]

[Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported solid H1 2024 financial performance, marked by underlying sales growth, stable adjusted operating profit, and improved free cash flow, alongside capital returns H1 2024 Financial Highlights (£m) | Measure | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Business Performance** | | | | Sales | 1,754 | 1,879 | | Adjusted operating profit | 250 | 250 | | Operating cash flow | 129 | 79 | | Free cash flow | 27 | (50) | | Adjusted earnings per share | 25.6p | 25.6p | | **Statutory Results** | | | | Sales | 1,754 | 1,879 | | Operating profit | 219 | 219 | | Profit for the period | 158 | 187 | | Net cash generated from operations | 185 | 106 | | Basic earnings per share | 23.1p | 26.1p | - Underlying Group sales grew 2% when excluding the OPM and Strategic Review businesses, with aggregate growth at **1%**[163](index=163&type=chunk)[170](index=170&type=chunk) - Adjusted operating profit grew **4%** on an underlying basis to **£250m**, with the adjusted profit margin increasing to **14%** from **13%** in H1 2023[164](index=164&type=chunk)[186](index=186&type=chunk) - A **£500m** share buyback is substantially complete, and the interim dividend was raised by **6%** to **7.4p** per share[166](index=166&type=chunk)[190](index=190&type=chunk) [Strategic & Operational Highlights](index=3&type=section&id=Strategic%20%26%20Operational%20Highlights) Pearson made operational progress with key contract wins and user growth, while updating its strategy to focus on core business performance and expansion into early careers and enterprise skilling - Pearson VUE renewed key contracts and won new ones, including university entrance tests in the UK and a teacher license contract in Georgia[191](index=191&type=chunk) - In Higher Education, Pearson+ reached **5.0m** cumulative registered users, and the company is launching AI tools for instructors in 25 best-selling titles for the Fall 2024 semester[193](index=193&type=chunk) - The company has identified a larger addressable market of c.**$80bn** (up from c.**$15bn**) and is focusing on enterprise skills and early careers to capture this opportunity[198](index=198&type=chunk)[202](index=202&type=chunk) - New executive appointments include Vishaal Gupta as head of Workforce Skills, Dave Treat as Chief Technology Officer, and Ginny Cartwright Ziegler as Chief Marketing Officer[195](index=195&type=chunk)[196](index=196&type=chunk) [Outlook](index=4&type=section&id=Outlook) The company reaffirms its 2024 and 2025 guidance, anticipating continued underlying sales growth and margin improvement into the medium term - **2024 Outlook:** Group underlying sales growth, adjusted operating profit, and tax outlook are reaffirmed; interest is expected to be c.**£45m** and free cash flow conversion **95-100%**[204](index=204&type=chunk) - **2025 Outlook:** The company expects to achieve mid-single digit underlying sales 3-year CAGR from 2022 to 2025 and an adjusted operating profit margin of **16-17%**[210](index=210&type=chunk) - **Medium Term Outlook (Post-2025):** The company anticipates mid-single digit underlying sales CAGR and sustained margin improvement averaging **40 basis points** per annum, with free cash flow conversion of **90-100%**[211](index=211&type=chunk) [Operational and Financial Review](index=5&type=section&id=Operational%20and%20Financial%20Review) [Operational Review by Segment](index=5&type=section&id=Operational%20Review%20by%20Segment) The operational review details varied performance across segments, with growth in Assessment & Qualifications, English Language Learning, and Workforce Skills, offset by declines in Virtual Learning and Higher Education H1 2024 Sales Growth by Segment | £m | H1 2024 | H1 2023 | Headline growth | Underlying growth | | :--- | :--- | :--- | :--- | :--- | | Assessment & Qualifications | 811 | 796 | 2% | 2% | | Virtual Learning | 254 | 373 | (32%) | (8%) | | Higher Education | 358 | 379 | (6%) | (2%) | | English Language Learning | 188 | 184 | 2% | 11% | | Workforce Skills | 143 | 140 | 2% | 6% | | **Total** | **1,754** | **1,879** | **(7%)** | **1%** | H1 2024 Adjusted Operating Profit/Loss by Segment | £m | H1 2024 | H1 2023 | Headline growth | Underlying growth | | :--- | :--- | :--- | :--- | :--- | | Assessment & Qualifications | 187 | 174 | 7% | 7% | | Virtual Learning | 31 | 47 | (34%) | (32%) | | Higher Education | (1) | (1) | 0% | 100% | | English Language Learning | 4 | 8 | (50%) | 38% | | Workforce Skills | 29 | 21 | 38% | 27% | | **Total** | **250** | **250** | **0%** | **4%** | - In Assessment & Qualifications, Pearson VUE sales grew **4%** and Clinical Assessment sales grew **1%**[175](index=175&type=chunk)[176](index=176&type=chunk) - In English Language Learning, PTE volumes declined **10%** due to tightening migration policies, but the segment saw strong growth in Institutional and Mondly[179](index=179&type=chunk)[46](index=46&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) This section analyzes the Group's financial performance, noting a decrease in headline sales but underlying growth, stable adjusted operating profit, a shift to net finance expense, and increased net debt due to capital returns [Sales and Operating Result](index=7&type=section&id=Sales%20and%20Operating%20Result) Headline sales decreased due to portfolio changes and currency, while underlying sales and adjusted operating profit showed growth, with statutory operating profit remaining flat - Headline sales decreased by **£125m** (**7%**) to **£1,754m**, while adjusted operating profit was flat at **£250m**[50](index=50&type=chunk) - On an underlying basis, sales increased **1%** and adjusted operating profit increased **4%**; currency movements negatively impacted sales by **£45m** and adjusted operating profit by **£12m**[51](index=51&type=chunk) Reconciliation of Operating Profit to Adjusted Operating Profit (£m) | | 2024 half year | 2023 half year | | :--- | :--- | :--- | | Operating profit | 219 | 219 | | Add back: Intangible charges | 20 | 24 | | Add back: UK pension discretionary increase | 5 | - | | Add back: Other net gains and losses | 6 | 7 | | Add back: Property charges | - | - | | **Adjusted operating profit** | **250** | **250** | [Net Finance Costs](index=8&type=section&id=Net%20Finance%20Costs) Net finance costs shifted from income to expense in H1 2024, driven by investment losses, reduced FX gains, and higher borrowing costs, leading to increased net interest payable - Net finance income decreased from **£17m** in H1 2023 to a net expense of **£7m** in H1 2024[59](index=59&type=chunk) - Net interest payable (adjusted measure) increased to **£21m** from **£12m** in H1 2023, mainly due to increased borrowings and lower returns on cash deposits[60](index=60&type=chunk) [Taxation](index=8&type=section&id=Taxation) The statutory and adjusted effective tax rates increased in H1 2024, primarily due to the absence of a non-recurring tax credit from a prior year disposal - The statutory effective tax rate was **25.5%** in H1 2024, compared to **20.8%** in H1 2023[63](index=63&type=chunk) - The adjusted effective tax rate was **23.6%** in H1 2024, compared to **22.7%** in H1 2023[64](index=64&type=chunk) - Net tax payments in H1 2024 were **£69m**, up from **£59m** in H1 2023[65](index=65&type=chunk) [Cash Flow and Capital Resources](index=8&type=section&id=Cash%20Flow%20and%20Capital%20Resources) Operating cash flow significantly improved due to lower capital expenditure and favorable working capital, though net debt increased primarily from share buybacks and dividends, with ample liquidity maintained - Operating cash flow (an adjusted measure) increased by **£50m** to **£129m** in H1 2024[70](index=70&type=chunk) - Net cash generated from operations (statutory measure) was **£185m** in H1 2024, compared to **£106m** in H1 2023[71](index=71&type=chunk) - Net debt increased to **£1,177m** at the end of June 2024 from **£744m** at the end of 2023[74](index=74&type=chunk) - The Group had available liquidity of c.**£0.5bn** at 30 June 2024 from cash and its undrawn Revolving Credit Facility[31](index=31&type=chunk)[76](index=76&type=chunk) [Capital Management](index=10&type=section&id=Capital%20Management) The company actively returns capital to shareholders through an increased interim dividend and substantial progress on its ongoing share buyback program - An interim dividend for 2024 of **7.4p** per share was declared, payable on 16 September 2024[4](index=4&type=chunk)[5](index=5&type=chunk) - In H1 2024, approximately **28 million** shares were bought back at a cash cost of **£278m** as part of the ongoing share buyback programme[6](index=6&type=chunk) - The **£300m** share buyback programme completed in March 2024; a **£200m** extension was c.**80%** complete as at 30 June 2024[6](index=6&type=chunk) [Principal Risks and Uncertainties](index=10&type=section&id=Principal%20risks%20and%20uncertainties) The principal risks remain consistent with the prior year, encompassing categories such as accreditation, AI, competitive landscape, and customer expectations, alongside ongoing monitoring of near-term macroeconomic and geopolitical factors - The principal risks have not changed materially from the 2023 Annual Report[9](index=9&type=chunk) - Key risk categories identified are: - **Accreditation Risk:** Loss or modification of course accreditation - **Artificial Intelligence, Content and Channel Risk:** Difficulty protecting IP and maintaining differentiation due to AI - **Capability Risk:** Inability to meet obligations due to infrastructure or organizational challenges - **Competitive Marketplace:** Changes in market demand or supply, including from generative AI - **Customer Expectations:** Rising expectations risking margin pressure or loss of sales - **Portfolio Change:** Failure to execute portfolio changes effectively - **Reputation and Responsibility:** Harm from failure to meet obligations to stakeholders[7](index=7&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - The Group continues to monitor significant near-term and emerging risks, including climate transition, inflation, interest rates, recession, supply chain, tax, sanctions, and geopolitics[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Income Statement](index=11&type=section&id=Condensed%20Consolidated%20Income%20Statement) For H1 2024, the Group reported sales of £1,754 million, operating profit of £219 million, and profit for the period of £158 million, resulting in basic earnings per share of 23.1p Condensed Consolidated Income Statement (for the period ended 30 June 2024) | all figures in £ millions | 2024 half year | 2023 half year | 2023 full year | | :--- | :--- | :--- | :--- | | **Continuing operations** | | | | | Sales | 1,754 | 1,879 | 3,674 | | Gross profit | 879 | 919 | 1,835 | | Operating profit | 219 | 219 | 498 | | Profit before tax | 212 | 236 | 493 | | Profit for the period | 158 | 187 | 380 | | **Earnings per share (in pence)** | | | | | Basic | 23.1p | 26.1p | 53.1p | | Diluted | 22.8p | 25.9p | 52.7p | [Condensed Consolidated Balance Sheet](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2024, the Group's balance sheet reported total assets of £6,709 million and total liabilities of £2,898 million, resulting in net assets of £3,811 million, a decrease from year-end 2023 Condensed Consolidated Balance Sheet (as at 30 June 2024) | all figures in £ millions | 2024 half year | 2023 half year | 2023 full year | | :--- | :--- | :--- | :--- | | Non-current assets | 4,188 | 4,368 | 4,294 | | Current assets | 2,521 | 2,499 | 2,431 | | **Total assets** | **6,709** | **6,882** | **6,727** | | Current liabilities | (1,418) | (1,164) | (1,404) | | Non-current liabilities | (1,480) | (1,530) | (1,335) | | **Total liabilities** | **(2,898)** | **(2,694)** | **(2,739)** | | **Net assets** | **3,811** | **4,188** | **3,988** | | **Total equity** | **3,811** | **4,188** | **3,988** | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from £3,988 million to £3,811 million in H1 2024, primarily due to share buybacks and dividends, partially offset by profit for the period - Total equity decreased by **£177m** in H1 2024, from **£3,988m** to **£3,811m**[23](index=23&type=chunk) - Key movements in equity include profit for the period (**+£158m**), share buybacks (**-£204m**), and dividends paid (**-£107m**)[23](index=23&type=chunk) [Condensed Consolidated Cash Flow Statement](index=14&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For H1 2024, net cash generated from operating activities was £75 million, leading to a net increase in cash and cash equivalents of £23 million after investing and financing activities, including significant share buybacks and new borrowings Condensed Consolidated Cash Flow Statement (for the period ended 30 June 2024) | all figures in £ millions | 2024 half year | 2023 half year | 2023 full year | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 75 | 13 | 525 | | Net cash used in investing activities | (81) | (244) | (301) | | Net cash generated from / (used in) financing activities | 36 | 49 | (450) | | **Net increase / (decrease) in cash and cash equivalents** | **23** | **(195)** | **(234)** | - Major financing cash flows in H1 2024 included proceeds from borrowings (**£495m**), buyback of equity (**-£278m**), and dividends paid (**-£107m**)[28](index=28&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Note 2: Segment Information](index=16&type=section&id=Note%202%3A%20Segment%20Information) This note details sales and adjusted operating profit by segment, and reconciles adjusted operating profit to statutory operating profit by accounting for specific non-GAAP adjustments H1 2024 Sales and Adjusted Operating Profit by Segment (£m) | Segment | Sales | Adjusted Operating Profit | | :--- | :--- | :--- | | Assessment & Qualifications | 811 | 187 | | Virtual Learning | 254 | 31 | | English Language Learning | 188 | 4 | | Workforce Skills | 143 | 29 | | Higher Education | 358 | (1) | | **Total** | **1,754** | **250** | Reconciliation of Adjusted Operating Profit to Statutory Operating Profit (£m) | | 2024 half year | | :--- | :--- | | Adjusted operating profit | 250 | | Intangible charges | (20) | | UK pension discretionary increases | (5) | | Other net gains and losses | (6) | | **Operating profit** | **219** | [Note 6: Adjusted Earnings Per Share](index=20&type=section&id=Note%206%3A%20Adjusted%20Earnings%20Per%20Share) This note reconciles statutory to adjusted earnings, a non-GAAP measure, showing H1 2024 adjusted earnings of £174 million and a flat basic adjusted EPS of 25.6p after specific adjustments Reconciliation to Adjusted Earnings (H1 2024, £m) | | Statutory | Adjustments | Adjusted | | :--- | :--- | :--- | :--- | | Operating profit | 219 | 31 | 250 | | Net finance income / (costs) | (7) | (14) | (21) | | Profit before tax | 212 | 17 | 229 | | Income tax | (54) | 0 | (54) | | **Earnings / (loss)** | **157** | **17** | **174** | Adjusted Earnings Per Share | | 2024 half year | 2023 half year | | :--- | :--- | :--- | | Adjusted earnings per share (basic) | 25.6p | 25.6p | | Adjusted earnings per share (diluted) | 25.3p | 25.5p | [Note 7: Dividends](index=22&type=section&id=Note%207%3A%20Dividends) The directors declared an interim dividend of 7.4p per share for 2024, estimated to cost £49 million, payable on September 16, 2024 - An interim dividend of **7.4p** per share has been declared, payable on 16 September 2024[108](index=108&type=chunk) - The total estimated cost of the interim dividend is **£49m**[108](index=108&type=chunk) [Note 10 & 11: Business Combinations and Disposals](index=23&type=section&id=Note%2010%20%26%2011%3A%20Business%20Combinations%20and%20Disposals) No significant acquisitions or disposals occurred in H1 2024, though net cash outflows were recorded for deferred payments on prior year acquisitions and costs related to past disposals - No significant acquisitions or disposals of subsidiaries occurred in H1 2024[117](index=117&type=chunk)[121](index=121&type=chunk) - A net cash outflow of **£38m** was recorded for acquisitions, relating to deferred payments for prior year acquisitions like Credly and Mondly[119](index=119&type=chunk)[120](index=120&type=chunk) - A net cash outflow of **£6m** was recorded for disposals, relating to costs paid for businesses disposed of in prior years[2](index=2&type=chunk)[124](index=124&type=chunk) [Note 12: Net Debt](index=24&type=section&id=Note%2012%3A%20Net%20Debt) The Group's net debt increased to £1,177 million as of June 30, 2024, primarily due to a significant drawdown on the revolving credit facility to fund share buybacks and dividends Net Debt Position (£m) | | 2024 half year | 2023 half year | 2023 full year | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 332 | 355 | 312 | | Borrowings | (1,613) | (1,383) | (1,161) | | Derivative financial instruments (Net) | 12 | (7) | (10) | | Investment in finance lease | 92 | 107 | 100 | | **Net debt** | **(1,177)** | **(911)** | **(744)** | - The increase in borrowings in 2024 primarily reflects an additional drawdown of **£495m** on the revolving credit facility[126](index=126&type=chunk) [Note 14: Cash Flows Reconciliation](index=26&type=section&id=Note%2014%3A%20Cash%20Flows%20Reconciliation) This note reconciles statutory to adjusted cash flow measures, showing H1 2024 operating cash flow of £129 million and free cash flow of £27 million, with net debt increasing due to acquisitions and equity transactions Reconciliation of Net Cash from Operations to Operating Cash Flow (H1 2024, £m) | | Amount | | :--- | :--- | | Net cash generated from operations (Statutory) | 185 | | Cost of major reorganisation | 5 | | Other net gains and losses | 3 | | Purchase/disposal of PPE and software | (52) | | Net addition of right of use assets | (12) | | **Operating cash flow (Adjusted)** | **129** | Reconciliation of Operating Cash Flow to Closing Net Debt (H1 2024, £m) | | Amount | | :--- | :--- | | Operating cash flow | 129 | | Tax paid | (69) | | Net finance costs paid | (28) | | Cost paid for major reorganisation | (5) | | **Free cash flow** | **27** | | Dividends paid | (107) | | Acquisitions and disposals | (54) | | Net equity transactions | (313) | | Other movements | 14 | | **Movement in net debt** | **(433)** | | Opening net debt | (744) | | **Closing net debt** | **(1,177)** | [Note 15: Contingencies](index=27&type=section&id=Note%2015%3A%20Contingencies) The Group faces several contingent liabilities, primarily tax disputes including a European Commission State Aid case, a UK tax assessment, and a significant Brazilian tax challenge, with varying provisions held - The Group has a contingent liability related to the EU Commission's State Aid ruling on the UK's FCPE; total exposure is **£105m**, with a provision of **£63m** held[144](index=144&type=chunk) - A separate assessment from UK tax authorities for 2019-2021 has a maximum exposure of **£43m**, with a provision of **£21m** held[145](index=145&type=chunk) - In Brazil, the Group is challenging tax assessments on goodwill amortisation with a potential total exposure of up to **BRL 1,345m** (**£192m**); the Group believes no provision is required at this stage[139](index=139&type=chunk)

Pearson to deliver new online UK Government learning experience platform As well as creating a single 'front door' for all pan-government learning, the platform will enable users to create a profile to capture their skills and track completed learning. This will be used to generate personalised training recommendations based on the skills they would like to develop further. "Our ambition is to provide a great user experience for all government employees, empowering them to take charge of their own training ...

Core Insights - The article discusses Pearson's introduction of a new generative AI tool aimed at helping educators enhance their teaching efficiency and focus more on student learning [1][4]. Company Developments - Pearson has launched a generative AI-powered tool for instructors to assist in creating personalized assignments, set to be included in MyLab and Mastering platforms this August [4][6]. - The new AI tool is designed to streamline the assignment creation process, allowing educators to save time and engage more with students [7]. Industry Trends - There is a growing trend of generative AI usage among students in higher education, with many students already utilizing AI tools for studying [3][9]. - A survey indicated that 38% of college instructors in the US feel little to no confidence in incorporating generative AI into their teaching practices, highlighting a gap in understanding and application of this technology [9]. Impact on Education - The implementation of generative AI tools could potentially save US educators nearly 3 million hours a week by 2026, enabling them to dedicate more time to direct student interaction [5]. - The AI tools will be available for the Fall 2024 semester across 25 titles in business, math, science, and nursing, indicating a significant expansion of AI resources in educational settings [6].

Partnership to offer unique workforce experiences, insight into growing fields and opportunities, as well as connection to collegiate and industry partners HOBOKEN, N.J., June 20, 2024 /PRNewswire/ -- Pearson (FTSE: PSON.L) and its Connections Academy, the fully online public school program serving K-12 students, announced today a strategic partnership with the SEMI Foundation, the 501(c)(3) arm of SEMI, a global industry association representing the electronics manufacturing, semiconductor, and design supp ...