Pearson expects a flat year

The education division increased sales by 1 per cent to £2bn, with a 6 per cent rise in the professional category, a 2 per cent rise at the international side and a flat North American performance. But education's underlying operating profit fell 54 per cent to £83m - in sharp contrast to the FT Group, where profit rose 19 per cent to £26m, although sales here were flat as decent content and subscription growth was offset by weak advertising.

Meanwhile, the merger of Penguin with Random House was completed shortly after the period ended - the associate status of Penguin Random House means Pearson will receive a 47 per cent share of its revenues and profits. Across the group, digital subscriptions grew in double digits and emerging markets delivered strong sales growth. Management is also exploring the possible sale of Mergermarket.

Chief executive John Fallon reiterated Pearson's strategy of focusing the education business on fast-growing economies and on digital and services businesses. Adjusted group earnings are expected to be broadly level with 2012's. Pearson is to reorganise its structure from 2014, too.

Numis Securities said the results were "broadly as expected" and is comfortable with its hold recommendation. It doesn't expect any major shift in estimates and currently expects full-year adjusted EPS of 74.5p (from 82.6p in 2012).