LONDON (dpa-AFX) - British publishing and education company Pearson plc (PSO, PSON.L) Monday, in its update on current trading and the impact of COVID-19, announced closure of majority of Pearson VUE test centres are closed from now until the middle of April and said its board decides to pause its share buyback, due to the global impact of corona virus.
The company said these closures will reduce its 2020 operating profit by about 25 million-35 million pounds. However, if closures last longer than the period announced above, then the Group expects an operating impact of similar scale for each additional month partially offset by cost actions they take.
To date, Pearson said, due to test cancellations for the academic year across the U.S., it estimates impact of about 15 million pounds to its 2020 operating profit, after mitigating actions. It also believe there is risk of further state test cancellations which could have a similar impact on profit.
The Group also said it sees modest financial impact due to closures of schools in China and Italy. The impact to sales of products in other regions is uncertain, especially given that the period for which educational institutions may be closed is unclear, and our sales periods are seasonal.
Copyright RTT News/dpa-AFX
© 2020 AFX News
