A strong financial position
Key documents
Financial performance highlights
4
%
Group underlying sales growth
17.2
%
Adjusted operating profit margin
25.2
p
Full year dividend
£
350
m
Share buyback well underway
Group Financial Expectations
2026 outlook
We expect Group underlying sales growth of mid-single digit and adjusted operating profit will be £640m-£685m at FX rates as at the end of 2025 (£:$ 1.35), which includes lower amortisation in 2026 following the 2025 product development impairment. We expect a free cash flow conversion of 90-100%.
By business unit:
- In Assessment & Qualifications we expect sales growth of low to mid-single digit, driven by new contracts, products and pricing.
- In Virtual Learning we expect stronger growth than 2025, particularly in H1, driven by a full year of enrolment growth.
- In Higher Education we expect to grow more than 2025, supported by continued product and platform innovation, pricing and Inclusive Access in our core US courseware business, with improvement in the K12 channel.
- In English Language Learning we expect higher growth than 2025 driven by market share gains and pricing, with PTE returning to growth.
- In Enterprise Learning & Skills we expect growth to be driven by a solid performance in Vocational Qualifications and strategic account growth in Enterprise Solutions.
Our adjusted net finance costs will be c.£80m reflecting the associated costs of funding the recently announced £350m share buyback. We expect the effective tax rate on adjusted profit before tax to be c.25%.