By Simon Zekaria
LONDON--Pearson PLC (PSO) said Friday its longstanding chairman,
Glen Moreno, is stepping down this year after nearly a decade in
the role, as the U.K.-based publisher and education firm reported a
rise in quarterly sales.
Mr. Moreno, 71, became chairman in October 2005 and will depart
in the next 12 months, Pearson said, without disclosing a more
specific time frame. The company said it is searching for his
successor.
In May, Mr. Moreno will become chairman of Virgin Money, the
closely held U.K. lender part-owned by billionaire entrepreneur
Richard Branson.
During Mr. Moreno's chairmanship, Pearson has transformed itself
from a paper-based publisher to a digital-focused education and
media specialist oriented toward education markets in the U.S., as
well as emerging economies like China and Brazil. He has also
overseen the appointment of Chief Executive John Fallon and chaired
the company during the tenure of Pearson's previous CEO Marjorie
Scardino, who was in the job for 16 years.
The publisher of the salmon-colored Financial Times newspaper
confirmed its financial guidance after reporting its sales in the
first three months of the year rose 5% on the year, boosted by the
strength of the U.S. dollar.
Ongoing sales were level at constant exchange rates compared
with the same period a year earlier. Excluding exceptional items
and on a reported basis, sales fell 1% to 900 million pounds ($1.36
billion).
It continued to expect to report full-year adjusted earnings per
share of between 75 pence and 80 pence in 2015, up from 66.7 pence
last year.
Pearson said the FT had seen "strong growth" in digital
circulation, without providing figures.
"Pearson has had a solid start to the year, in line with our
expectations," said Mr. Fallon.
In early trading, Pearson's shares fell more than 1%. Numis
Securities downgraded the stock on valuation grounds after a strong
recent run, with analyst Gareth Davies saying the update offers no
surprises to investors. Still, he noted the quarter is a quiet one
for the group given seasonal trading aligned to the school
year.
The shares are up 17% in the year to date.
Mr. Moreno's departure follows an announcement at the end of
February that the London-based group appointed Coram Williams as
its chief financial officer. Mr. Coram is chief financial officer
of book publisher Penguin Random House--a joint venture in which
Pearson has a 47% stake. Mr. Williams will start the role on Aug.
1, replacing Robin Freestone, whose departure was announced last
year.
Pearson generates more than three-quarters of its revenue from
education, including textbooks and software for teachers and
students in schools and higher education, with 60% of total group
sales coming from North America. It is rolling out language centers
across developing markets to meet the appetite for learning among
aspirational, rising populations experiencing a socio-economic
boom.
The company expects sales this year, excluding acquisitions and
disposals, to increase for the first time in five years amid a
recovery in its core education markets, including the U.S. The
company has also completed a two-year restructuring plan that has
hit earnings but saved the business hundreds of millions of
dollars.
News Corp which owns Dow Jones & Co., publisher of The Wall
Street Journal, competes with Pearson's publishing, business-news
and education divisions.
Write to Simon Zekaria at simon.zekaria@wsj.com
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