Pearson will switch from selling to schools to selling to students
Educational publisher Pearson is to change from selling mainly to schools and colleges towards selling directly to consumers, including students.


Pearson’s CEO Andy Bird (pictured) has announced that the educational-publishing company will overhaul its business to draw a line under a “tumultuous decade”, says Bethan Staton in the Financial Times: it “issued seven profit warnings in as many years”.
The plan is to shift from selling mainly to schools and colleges towards selling directly to consumers, including students. The company is also looking to take advantage of what it sees as the growing demand for “lifelong learning” as workers start to spend more time continuously upgrading their skills throughout their careers. These changes may cause Pearson some short-term pain, says Simon Duke in The Times. Bird says restructuring the company into five divisions, including a new consumer division, will cost “between £40m and £70m this year”. At the same time the decision to slash office space, to take advantage of a move towards remote working, will “reduce reported profits by about £130m this year”, although it will also cut long-term overheads.
Bird will have to “move quickly to keep investors on side”, especially when patience has already been “tested” over his pay packet, says Ben Woods in The Daily Telegraph. Another concern is whether Pearson’s success in selling to the college market can extend to the “super competitive” lifelong-learning market, especially since the company has “stoked up expectations” of a “Netflix of Education”-style revolution before, only to leave investors “wanting”. Still, it’s a necessary gamble: lifelong learning “is clearly where the growth is”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Could investing in sugar protect you during a downturn?
Sugar has some defensive qualities during economic downturns, but is now the right time to invest in sugar?
By Dan McEvoy
-
Trump’s tariffs: how should the UK respond?
Every right-thinking person knows that free trade is a surer route to the wealth of nations than protectionism. So, what is Trump thinking?
By Stuart Watkins
-
Falling revenues and mounting debt spell trouble for Jumia Technologies
Struggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.
By Dr Matthew Partridge
-
Bargain Britain boasts both value and momentum
Interview Ian Lance, manager of the Temple Bar Investment Trust, tells Andrew Van Sickle that the outlook for UK stocks has improved and healthy long-term returns are in prospect
By Andrew Van Sickle
-
Next reports £1 billion in annual profits for the first time – what's next for the retailer?
Clothing retailer Next has become only the fourth member of its sector to surpass £1 billion in annual profits. What does this mean for the company's future?
By Dr Matthew Partridge
-
Best of British bargains: cash in on undervalued companies in the UK stock market
Opinion Michael Field, Chief Equity Market Strategist, EMEA, Morningstar, selects three attractive UK stocks where he'd put his money
By Michael Field
-
Building firm Keller presents low debt and ample scope for growth
Geotechnical contractor Keller, which supports vital global infrastructure, boasts rising profits and a cheap valuation
By Dr Mike Tubbs
-
PZ Cussons share price down 75% in last decade – why it's one to watch
Opinion Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward
By Jamie Ward
-
Cash in on the biotech sector with specialist trust BioPharma
Opinion BioPharma has an attractive niche in lending to asset-rich biotechnology companies
By Rupert Hargreaves
-
India's stock market decline wipes out $1.3 trillion in market value – can investors stay optimistic?
More than $1 trillion has been wiped off from India's stock market after investors turn to China. Has the emerging-market darling hit rock bottom?
By Alex Rankine