Pearson PLC revised earnings guidance for the full year of 2017. For the full year 2017, the company expects at guidance exchange rates adjusted operating profit of c.£600 million to £605 million is at the upper end of October 2017 guidance range of £576 million to £606 million. At average effective exchange rates in 2017 The company expects to report adjusted operating profit around £570 million to £575 million and adjusted earnings per share of 53.5 pence to 54.5 pence. Adjusted earnings per share is above the October 2017 guidance range of 49 pence to 52 pence reflecting an improved tax rate of around 11%, due to the further favourable outcome of certain historical tax issues, and after a net interest charge of approximately £80 million. Total underlying revenues declined 2%, in line with the performance in the nine-months, due to a decline of 4% in North America partly offset by stabilisation in Core and Growth. Sales in US higher education courseware were down 3% on an underlying basis, in line with the lower end of revised guidance range, due to the continuation of trends seen in the first nine-months combined with cautious buying behaviour from channel partners in the fourth quarter. Strong balance sheet with closing net debt at 31 December 2017 expected to be around £0.5 billion against £1.1 billion due to good cash generation and proceeds from disposals.

For the full year of 2018, the company expects the base for 2018 guidance is expected 2017 adjusted operating profit of £570 million £575 million less the full year impacts of disposals made in 2017 £45 million and less favourable exchange rates at 31 December 2017 £25 million. The company expects growth from that base and are giving guidance for 2018 adjusted operating profit of between £520 million and £560 million. In addition to FX and disposals, this guidance also reflects the benefits of restructuring programme and ongoing challenges in US higher education courseware. In US higher education courseware business, The company expects revenues to be flat to down mid-single digit % due to the similar underlying pressures seen in the last two years from lower college enrolments, increased use of Open Educational Resources and attrition from growth in the secondary market driven by print rental, partially offset by growth in digital revenues, benefits from tactical actions and a continued normalisation of channel returns behaviour. The company expects adjusted earnings per share of 49 pence to 53 pence.