Sharewatch: Pearson Slips Ahead Of Positive Update

US-publishing company Pearson saw a dip yesterday, losing 0.82% from its share price to close at 604˝p ahead of a positive trading statement issued to investors this morning.

The company, which publishes the Financial Times, reports that sales are up by 2%, while operating profit has risen by 7%. The company also claims that free cash flow is well ahead of 2003, and that, at this stage, it remains on track to achieve underlying progress on earnings, cash and returns in 2004.

Yesterday saw rumours circulate that the FT may drop its weekly Creative Business section. The move would form part of an extensive £7 million cost cutting drive following a slump in advertising revenues and declining sales last year (see Financial Times Could Close Creative Business).

Elsewhere, Independent News & Media saw a decline of 0.32%, closing at 155žp yesterday afternoon. The company yesterday filed accounts at Companies House revealing that it spent around £6 million on the development of the tabloid Independent, pushing losses at the company to an estimated £15 million and suggesting that the company is struggling to reach a break even-point, promised to be the case by 2006.

Rival newspaper group Trinity Mirror was also in decline, losing 0.39% to close at 641˝p. Earlier this week the publisher announced the appointment of Georgina Crace as managing director of its regional newspaper business, following the departure of Stephen Parker earlier this year (see Trinity Mirror Appoints New MD For Regional Newspapers).

The FTSE 100 made positive progress yesterday, inching up by 1.1 points to close at 4,717.7, while the FTSE 250 suffered a loss of 3.0 points, closing at 6,471.4.

The closing prices of media company shares on Tuesday were: