Investment Column: Pearson is a good bet in turbulent times
Independent
UK
In the current market mayhem, stock picking is a treacherous business. In that context, this column is turning to one of its perennial favorite defensive stocks: Pearson. While it may still be best-known for brands such as the Financial Times and Penguin Publishing, under the firm management of Dame Marjorie Scardino, Pearson has been transformed into an education powerhouse. The company has carried out a series of successful, relatively small, acquisitions to help it expand in India and China, and the company’s finance director Robin Freestone revealed at the results that there was a :£500m war chest to target further deals. Yesterday saw it turn to more mature markets, with the acquisition of Stark Holding in Germany. Stark, whose revenues were €20m in the year to the end of July 2010, makes educational materials, including resources to help pupils and teachers prepare for tests. Pearson said the deal diversified its operations in the country and added that it would enhance adjusted earnings per share in the first full year after the acquisition.
