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Brokers Tips

Under-fire Pearson throws out the textbook

25 January 2016

The global education group unveiled an extensive restructuring programme and cut profit forecasts

Pearson's directors (PSON) have taught many investors a lesson: the promise of cost savings and the guarantee of a chunky yield can outweigh a profit warning. Their unveiling of an extensive restructuring programme - which will simplify the company's structure, centre its gaze on growth markets and slash headcount by a tenth - sent the education giant's shares up 17 per cent. They also committed to paying a yearly dividend of 52p a share. This tempered lower guidance, with the market now being told to expect adjusted EPS of 50p to 55p in 2016, down from an estimated 69p to 70p in 2015.

Under-fire Pearson throws out the textbook

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