Pearson into the black at halfway

PEARSON made a rare first-half profit, albeit of just £2m in the six months to June, against a £1m loss for the same period last year.

Chief executive Marjorie Scardino cheered investors with her prediction that its mainstay education division is on track to grow this year and that she expects 'significant revenue and profit growth' from it in 2005 as US states increase education budgets by an average of 8%.

But the Financial Times continues to lose money, £6m in the first half, though £20m of cost cuts should keep the loss for the year down to £12m.

Pearson's other business titles increased profits.

Profits halved to £10m at its Penguin publishing unit. It depends almost entirely on its Christmas booklist to make most of its money in the second half. This year it will put out more children's books by Madonna, a new Patricia Cornwell novel and Jamie Oliver's first cookery book for two years.

Pearson's turnover slipped 4% to £1.59bn due to the slide in the dollar, the currency in which it earns two-thirds of its revenue, and was 5% lower over the year. The dividend rises 3% to 9.7p.