Coronavirus hits Pearson's buyback as schools close around the globe

SCHOOL closures caused by the coronavirus pandemic today hit Pearson hard as the education firm paused its share buyback and warned on profits for 2020.

The company, which runs school examinations in the UK and the US, said the £350 million share buyback would be suspended immediately and that profits would be £55 million lower than expected.

“We are taking immediate measures to contain our costs and protect our financial position. We believe there is a risk of further test cancellations.”

The decision comes as last week the Government cancelled all GCSEs and A-levels this summer. This was followed quickly by the US, where all exam assessments have been postponed.

Pearson will also be hit by the closure of its 22,000 adult test centres, which allow students to take professional exams ranging from nursing to law. The centres are in 180 countries around the globe and to date cancellations have already cost the company £15 million in lost revenue.

Coronavirus has come at a tough time for the education publisher, which has struggled to move its business online. It is still on the hunt for a permanent chief executive after John Fallon said he would step down this year.

Shares fell 12% to 442p.