Pearson announces exit from UK adult training business

Pearson said Monday it has decided to shut down its UK adult training business Pearson in Practice following lower-than-expected demand.

Pearson said Monday it has decided to shut down its UK adult training business Pearson in Practice following lower-than-expected demand.

Pearson in Practice - built around Pearson's 2010 acquisition of Melorio - provides industry-specific training and qualifications through apprenticeships, work-based, technical and specialised training programmes.

The FTSE 100 learning company said a review of the business last October revealed changes to the apprenticeships programme over the past year had reduced demand for Pearson and Practice services and limited the funding to support its delivery.

"Pearson believes Pearson in Practice no longer has a sustainable business model and that we can better address learner needs in other ways," the firm said in a statement.

The cost of closure and impairment was estimated at £120m and will be reflected as a loss on disposal in Pearson's 2012 statutory accounts.

Pearson will work with the Skills Funding Agency to ensure learners and apprentices continue to receive the support they need.

They will help learners complete their courses on their current timetables through Pearson in Practice or through transfer to another training provider.

Pearson is set to hold discussions with Further Education colleges and other providers about the transfer of learners and apprentices, to ensure that they can complete their programmes.

John Fallon, Pearson's Chief Executive, said: "Pearson in Practice has provided quality training programmes to thousands of young people who have a real need for skills that help them secure a job.

"We very much regret the decision to plan for closure, but we believe we have explored and exhausted all alternatives. Our focus in the coming months will be on working with our partners in the further education sector and industry to ensure minimum disruption to learners who are currently enrolled in one of our programmes."

Shares dropped 0.65% to 1,214.00p at 10:48 Monday.

RD

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
5 top UK tech stocks
Investments

5 top UK tech stocks

The UK market has never been considered a fertile hunting ground for tech stars. But there are plenty of promising companies beyond the old economy, s…
23 Mar 2023