Pearson swings to a loss due to pandemic but sees second-half recovery

British education company Pearson swung to a first-half loss due to the impact of Covid-19 although it said it was on track to deliver adjusted operating profit broadly consistent with expectations as markets recovered.

The company, which has withdrawn its guidance for the year, has mobilised its resources to provide more capacity to help students learn online and said underlying sales had fallen 17% in the first half but a recovery had been under way since June.

It made an adjusted operating loss of 23 million pounds ($29.3 million) for the six months to 30 June 2020 compared to a 144 million pounds profit last year.