Pearson Growth To Slow

The Pearson Group issued a trading update statement this morning which points to a slowing of growth next year. A number of factors, says Pearson, will result in continued growth in principal markets but that it is liable to be less than the previous two years. Changes in exchange rates are to affect the group’s operating profits which are predicted to be around “£20m lower than would have been the case if 1996 exchange rates had prevailed in 1997.”

The statement continued: “We expect industry conditions to remain highly competitive in all our major markets in 1998.” The restructuring of Pearson into a ‘world class business’ by chief executive Marjorie Scardino will continue to incur significant costs although they will be “considerably below the £40m incurred in 1996.”

The group also said that the Financial Times newspaper is performing strongly and that profits at Pearson New Entertainment have continued to grow. Pearson will issue its preliminary results for the second half of this year on 16 March 1998.

Pearson plc: 0171 411 2310/11