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UPDATE: Pearson CFO To Step Down; Retains Guidance Despite Sales Fall
[October 24, 2014]

UPDATE: Pearson CFO To Step Down; Retains Guidance Despite Sales Fall


(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Publisher Pearson PLC Friday said Chief Financial Officer Robin Freestone will step down by the end of 2015 to explore other interests, as it eked out a 1% rise in sales in the first nine months of the year at constant currency rates.



In a statement, the company said it was retaining its full year guidance for adjusted earnings per share to come in between 62 pence and 67 pence in 2014, even though sales in the first nine months of the year were down 6% excluding Penguin and Mergermarket at actual exchange rates, due to the strength of the pound against the US dollar and emerging market currencies.

Pearson said it has already started looking for a new CFO, and will consider internal and external candidates. Freestone will remain in the role until a successor is in place.


He joined Pearson in 2004 as as deputy chief financial officer and became chief financial officer in June 2006.

"I feel that eight years as CFO is long enough for anyone to play this type of role. I am focused now on delivering our financial commitments in 2014 and developing our 2015 plans, supporting Pearson and my board colleagues in their search for a successor, and facilitating the arrival and induction of that person. After that I look forward to beginning a new phase of my career," Freestone said in a statement.

The company reported 1% sales growth at constant exchange rates for the first nine months of 2014, a 6% decline at actual rates and flat underlying growth.

At constant exchange rates, sales were up 2% in North America, but down 7% in core regions. Sales grew 11% in its emerging markets, which it calls its growth markets, due to its acquisition of Grupo Multi.

The company also said its restructuring programme remains on track and it expects to book restructuring costs of GBP50 million in 2014. It said it still expects to return to "normal" levels of restructuring in 2015.

It said it school revenue in North America were broadly level. In Europe, growth in Italy was more than offset by the impact of policy changes on its UK school qualifications business. Its growth regions were bolstered by its acquisition of Grupo Multi, and sales were flat in underlying terms, primarily due to the phasing of purchasing and a stronger 2013 textbook adoption calendar in South Africa.

Revenue at the Financial Times declined slightly as record paid circulation of almost 690,000 driven by 23% growth in digital subscriptions to more than 476,000, was offset by further declines in print.

It said Penguin Random House performed well in the third quarter, and the integration of the company's businesses is progressing well and is on track to deliver benefits in 2015 and beyond.

"We are reiterating our guidance for this year and, overall, we are performing well competitively through a period of change and in difficult markets. We still expect those markets to start to stabilise next year and then return to growth in future years," Pearson Chief Executive John Fallon said.

"Our restructuring programme is on track and our momentum in digital, services and emerging market education is building, which will drive a leaner, more cash generative, faster growing business from 2015," he added.

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