Pearson

Annual Report and Accounts 2010

Five year summary

All figures in £ millions 2006 2007 2008 2009 2010
Sales
North American Education 1,679 1,667 2,002 2,470 2,640
International Education 640 735 866 1,035 1,234
Professional 211 226 244 275 333
Education 2,530 2,628 3,112 3,780 4,207
FT Group 280 344 390 358 403
Penguin 848 846 903 1,002 1,053
Continuing 3,658 3,818 4,405 5,140 5,663
Discontinued 765 511 414 484 296
Total sales 4,423 4,329 4,819 5,624 5,959
           
Adjusted operating profit
North American Education 280 273 303 403 469
International Education 73 92 135 141 171
Professional 17 27 36 43 51
Education 370 392 474 587 691
FT Group 27 56 74 39 60
Penguin 66 74 93 84 106
Continuing 463 522 641 710 857
Discontinued 129 112 121 148 81
Total adjusted operating profit 592 634 762 858 938
           
Operating margin – continuing 12.7% 13.7% 14.6% 13.8% 15.1%
           
Adjusted earnings
Total adjusted operating profit 592 634 762 858 938
Net finance costs (90) (85) (88) (97) (85)
Income tax (130) (145) (178) (194) (215)
Non-controlling interest (28) (32) (36) (44) (17)
Adjusted earnings 344 372 460 523 621
Weighted average number of shares (millions) 798.4 796.8 797.0 799.3 801.2
Adjusted earnings per share 43.1p 46.7p 57.7p 65.4p 77.5p
Cash flow
Operating cash flow 575 684 796 913 1,057
Operating cash conversion 97% 108% 104% 106% 113%
Operating free cash flow 434 533 631 723 904
Operating free cash flow per share 54.4p 66.9p 79.2p 90.5p 112.8p
Total free cash flow 433 407 631 723 904
Total free cash flow per share 54.2p 51.1p 79.2p 90.5p 112.8p
           
Net assets 3,644 3,874 5,024 4,636 5,605
           
Net debt 1,059 973 1,460 1,092 430
           
Return on invested capital (gross basis)
Total adjusted operating profit 592 634 762 858 938
Cash tax paid (59) (61) (89) (103) (85)
Return 533 573 673 755 853
Average invested capital 6,553 6,423 7,337 8,504 8,315
Return on invested capital 8.1% 8.9% 9.2% 8.9% 10.3%
           
Dividend per share 29.3p 31.6p 33.8p 35.5p 38.7p