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MARKET REPORT: Publisher Pearson shares rise 12.7% on the back of strong interim results

MARKET REPORT: Publisher Pearson Shares Up Nearly 13% on Strong Results







It was, to use a football cliche, a day of two halves for stocks, with yesterday morning’s gains evaporating into the afternoon session.

Publisher Pearson maintained its profit, rising 12.7 percent, or 96p, to 852.6p on strong interim results.

The company, which has long divested the best-known parts of its publishing empire, such as the Financial Times and Penguin Books publishing house, to focus on “education, education, education,” is sometimes testing the patience of its shareholders. put.

Publisher Pearson held on to its profits, rising 12.7 percent, or 96p, to 852.6p thanks to strong interim results

Publisher Pearson held on to its profits, rising 12.7 percent, or 96p, to 852.6p thanks to strong interim results

So it was with clear relief that the market welcomed the company’s reaffirmation of its full-year outlook. Indeed, the company boasted an acceleration in the company’s margins, fueled by its increasingly digital-centric platform.

Pearson now expects to meet its margin targets by 2023, two years earlier than previously expected, thanks to unearthing further efficiencies of at least £100m for next year.

In the first half of 2022, revenue grew 6 percent year-on-year to £1.8 billion, driven by the US Student Assessment and UK & International Qualifications departments as exam schedules normalize following the Covid-19 disruption.

Profits rose to £179 million from £157 million and the interim dividend was increased by 5 per cent to 6.6 pence. Shore Capital analyst Roddy Davidson was “happy with the positive momentum and growth prospects” and tipped Pearson as “beneficiary of positive medium-term outlook for global learning spending.”

The FTSE 100 fell 0.1 percent or 10.01 points to 7413.42 and the FTSE 250 fell 0.4 percent or 85.67 points to 20079.23. Investors hoped it was just a breather for the FTSE100, which has surged around 400 points since the middle of last month, so it’s no wonder fund managers were in high demand.

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Ondo Insurtech, the insurance claims prevention technology company, skyrocketed after it said it would begin rolling out its LeakBot leak detection device in Denmark in September on behalf of the country’s largest insurance company, LB Forsikring. A trial of 1,000 LeakBots has halved insurance claims, prompting LB Forsikring to roll out at least 10,000 devices, of which 3,000 were distributed before the end of 2022. Shares jumped 22.7 percent or 1.25 cents to 6. 75 euros.

1659726276 794 MARKET REPORT Publisher Pearson shares rise 127 on the back

1659726276 794 MARKET REPORT Publisher Pearson shares rise 127 on the back

What happened to sell and leave in May? Rathbones Group (3.1 percent, or 56p, to 1866p) and Jupiter Fund Management (4.3 percent, or 5.4p, to 130.8p) were the money managers’ picks. Ascential, which hosts the Cannes Lions advertising exhibition, and XP Power were largely responsible for the FTSE 250’s lackluster performance.

The former fell 15.6 percent or 45.6 pence to 246.4 pence, despite organic sales growth of 42 percent in the first half of this year compared to the first half of 2021. Profits more than doubled from £23 .3 million the year before to £48.4 million, but one-off charges rose to £89.7 million from £36.2 million, meaning the company posted a loss of £41.6 million compared to the previous year. half-year loss of £37 million.

XP Power, meanwhile, fell 14.8 percent or 450p to 2590p, as it said revenue growth in the first half of this year was still limited by component shortages in the industry, a five-week Covid19 lockdown in China and extended delivery times of parts.

Margins were impacted by lower production volumes and inflation, but the company said the price increases it made in 2021 and this year should yield a greater benefit in the second half of this year and into 2023.

The half-year results of another strong FTSE250, Spectris, also failed to match shares in the precision instruments specialist which fell 5.6 percent or 175p to 2934p. But investors hid in shares of Photo-Me, the company that provides the photo booths and other kiosk-based services, including printing, food sales and laundromats.

The company, which this week changed its name to ME Group, saw shares rise 4.9 percent or 5p to 107p after CEO Serge Crasnianski said it continues to expand its presence in the laundry market.