In financial terms, Pearson's goal is to achieve sustainable growth on three key financial goals - earnings, cash and return on invested capital, and reliable cash returns to our investors through healthy and growing dividends. Over the past five years we have produced, on average, 15% growth in earnings and 11% in cash flow. And we have sustained our growth even in the face of very tough economic and market conditions in recent years.
|2011 £m||2010 £m||Headline growth||CER growth||Underlying growth|
|Adjusted operating profit||942||857||10%||12%||7%|
|Adjusted profit before tax||890||853||4%|
|Adjusted earnings per share||86.5p||77.5p||12%|
|Operating cash flow||983||1,057||(7)%|
|Total free cash flow||772||904||(15)%|
|Total free cash flow per share||96.5p||112.8p||(14)%|
|Return on invested capital||9.1%||10.3%||(1.2)% pts|
|Profit before tax||1,155||670||72%|
|Basic earnings per share||119.6p||161.9p||(26)%|
|Cash generated from operations||1,093||1,169||(7)%|
|Dividend per share||42.0p||38.7p||9%|
Notes Throughout this document:
a) Growth rates are stated on a constant
exchange rate (CER) basis unless otherwise stated. Where quoted,
underlying growth rates exclude both currency movements and
b) Interactive Data was treated as a discontinued business in 2010 and sales and operating profit are stated on a continuing business basis, excluding Interactive Data from 2010. Until its sale on 29 July 2010, Interactive Data contributed 2010 revenues of £296m and 2010 adjusted operating profit of £81m.
c) The 'business performance' measures are non‑GAAP measures and reconciliations to the equivalent statutory heading under IFRS are included in notes 2, 8 and 33 to the annual report.
2011 Sales £5.9bn +6%
2011 Adjusted operating profit £942m +12%
Our five-year record
Average annual growth in headline terms, 2006-2011