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Financial highlights
Year ended 31 December 2009

In financial terms, Pearson's goal is to achieve sustainable growth on three key financial goals – earnings, cash and return on invested capital – and reliable cash returns to our investors through healthy and growing dividends. In 2009, we reported underlying growth in sales and operating profit, in spite of the exceptionally difficult macroeconomic environment and against record 2008 results. We achieved significant profit growth in education, helping us to grow even though our markets in US school publishing, financial advertising and consumer books were especially challenging.

Business performance and Statutory results


Business performance

Sales 5,624 4,811 17% 4% 2%
Adjusted operating profit 858 762 13% 4% 2%
Adjusted profit before tax 761 674 13%
Adjusted earnings per share 65.4p 57.7p 13%
Operating cash flow 913 796 15%
Total free cash flow 723 631 15%
Total free cash flow per share 90.5p 79.2p 14%
Return on invested capital 8.9% 9.2% (0.3)%pts
Net debt 1,092 1,460 25%

Statutory results

Operating profit 755 676 12%
Profit before tax 660 585 13%
Basic earnings per share – continuing 53.2p 47.9p 11%
Cash generated from operations 1,012 894 13%
Dividend per share 35.5p 33.8p 5%

Note Throughout this document (unless otherwise stated), sales and adjusted operating profit growth rates are stated on a constant exchange rate (CER) basis. Where quoted, underlying growth rate exclude both currency movements and portfolio changes. The 'business performance' measures are non-GAAP measures and reconciliations to the equivalent statutory heading under IFRS are included in notes 2, 8 and 31 to the annual report. Adjusted operating profit is stated on a continuing basis.

2009 Sales

2009 Adjusted operating profit

Our record - Average annual growth in headline terms 2004 - 2009

Sales £m
Average annual growth in headline terms
Adjusted operating profit £m
Average annual growth in headline terms

Annual report

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