TIDMPSON
RNS Number : 9403U
Pearson PLC
07 January 2013
Press release
7 January 2013
PEARSON ANNOUNCES PLANS TO EXIT ITS UK ADULT TRAINING BUSINESS,
PEARSON IN PRACTICE
Current learners will be supported to complete their learning
programmes in colleges and in the workplace
In October 2012, Pearson announced that it had initiated a
comprehensive review of Pearson in Practice, a UK adult training
business, in response to a radically changing trading environment.
Following that review, Pearson has decided that it plans to exit
this business and is therefore entering into a consultation period
with Pearson in Practice staff.
Pearson in Practice was built around Pearson's 2010 acquisition
of Melorio plc. It provides high-quality, industry-specific
training and qualifications through apprenticeships, work-based,
technical and specialised training programmes. Over the past year,
changes to the apprenticeships programme - and in particular the
shift from a programme-led to an employer-led model - have reduced
demand for the type of programmes offered by Pearson in Practice
and limited the funding available to support their delivery.
Pearson believes Pearson in Practice no longer has a sustainable
business model and that we can better address learner needs in
other ways.
Pearson remains fully committed to supporting all Pearson in
Practice learners and apprentices to complete their courses on
their current timetables, whether with Pearson in Practice or, if
it is more appropriate, through transferring them to another
training provider.
Pearson is therefore working with the Skills Funding Agency to
ensure that learners continue to be supported through other skills
and workplace training providers, and Pearson's other work based
learning programmes. Pearson will have discussions with Further
Education colleges and other providers about the transfer of
learners and apprentices, to ensure that they can complete their
programmes with a minimum of disruption. Learners and apprentices
will be kept fully informed as these discussions progress.
Pearson's talks with FE Colleges and other providers will
include the discussion of the transfer of some Pearson in Practice
assets. Following the conclusion of these discussions and an
orderly wind-down period, Pearson intends to discontinue any
activities retained by Pearson in Practice. If Pearson is
unsuccessful in transferring Pearson in Practice assets to other
training providers, Pearson is proposing to close the business.
Pearson will continue to provide training and support for young
adults who wish to develop skills and enter the UK workforce
through our qualifications and curriculum businesses, particularly
Pearson Work Based Learning. Pearson WBL develops skills in the
workplace through the design and assessment of apprenticeships,
working in partnership with employers and professional bodies and
providing them with the support they need to provide apprentices
with a full and rich learning experience. In 2012, Pearson WBL
helped deliver 170,000 apprenticeships in the UK and
internationally through brands such as BTEC and LCCI.
The cost of closure and impairment is expected to be
approximately GBP120 million and will be reflected as a loss on
disposal in Pearson's 2012 statutory accounts.
John Fallon, Pearson's chief executive, said: "Pearson in
Practice has provided quality training programmes to thousands of
young people who have a real need for skills that help them secure
a job. We very much regret the decision to plan for closure, but we
believe we have explored and exhausted all alternatives. Our focus
in the coming months will be on working with our partners in the
further education sector and industry to ensure minimum disruption
to learners who are currently enrolled in one of our programmes. We
continue to believe that preparation for the workplace is a hugely
important part of education provision in the UK, and we are
committed to providing those services from other parts of
Pearson."
ENDS
For more information:
Luke Swanson / Simon Mays-Smith / Charles Goldsmith + 44 (0) 20
7010 2310
This information is provided by RNS
The company news service from the London Stock Exchange
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