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Record Results In 2007
| 2007 | 2006 | Headline growth % |
Underlying growth % |
|||
|---|---|---|---|---|---|---|
| £m | $m | £m | $m | |||
| Business performance | ||||||
| Sales | 4,218 | 8,394 | 4,051 | 8,061 | 4 | 6 |
| Adjusted operating profit | 634 | 1,262 | 592 | 1,178 | 7 | 14 |
| Adjusted profit before tax | 549 | 1,093 | 502 | 999 | 9 | – |
| Adjusted earnings per share | 46.7p | 92.9¢ | 43.1p | 85.8¢ | 8 | – |
| Operating cash flow | 684 | 1,361 | 575 | 1,144 | 19 | – |
| Operating free cash flow | 533 | 1,061 | 434 | 864 | 23 | – |
| Return on invested capital | 8.2% | – | 8.0% | – | 0.2% pts | 1.0% pts |
| Net debt | 973 | 1,936 | 1,059 | 2,107 | (8) | – |
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| 2007 | 2006 | Headline growth % |
Underlying growth % |
|||
|---|---|---|---|---|---|---|
| £m | $m | £m | $m | |||
| Statutory results | ||||||
| Sales | 4,162 | 8,282 | 3,990 | 7,940 | 4 | – |
| Operating profit | 574 | 1,142 | 522 | 1,039 | 10 | – |
| Profit before tax | 468 | 931 | 448 | 892 | 4 | – |
| Basic earnings per share | 35.6p | 70.8¢ | 55.9p | 111.2¢ | (36) | – |
| Basic earnings per share – continuing |
39.0p | 77.6¢ | 52.7p | 104.9¢ | (26) | – |
| Cash generated from operations |
659 | 1,311 | 621 | 1,236 | 6 | – |
| Dividend per share | 31.6p | 62.9¢ | 29.3p | 58.3¢ | 7.8 | – |
Growth rates are stated on an underlying basis (i.e. excluding currency movements and portfolio changes) unless otherwise stated. The business performance measures are non-GAAP measures and reconciliations to the equivalent statutory heading under IFRS are included in notes 2, 8 and 32 to the annual report. Dollar comparative figures have been translated at the year end rate of $1.99:£1 sterling for illustrative purposes only.
Notes
Throughout this document (unless otherwise stated): Growth rates are stated on an underlying basis (i.e. excluding 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 32 to the annual report. Dollar comparative figures have been translated at the year end rate of $1.99:£1 sterling for illustrative purposes only.
Reliance on this document
Our Business Review has been prepared in accordance with the Directors’ Report Business Review Requirements of section 234ZZB of the Companies Act 1985. It also incorporates much of the guidance set out in the Accounting Standards Board’s Reporting Statement on the Operating and Financial Review.
The intention of this document is to provide information to shareholders and is not designed to be relied upon by any other party or for any other purpose.
Forward-looking statements
This document contains forwardlooking statements which are made by the directors in good faith based on information available to them at the time of approval of this report. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations,margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated costs savings and synergies and the execution of Pearson's strategy, are forwardlooking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forwardlooking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based.