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  Pearson Annual Report 2001    

Corporate and Operating Measures

   
 
Sales underlying growth

Sales growth excluding the impact of acquisitions and disposals and movements in exchange rates.



  2001 2001
all figures in millions pre-internet post-internet


Underlying decrease (24) (11)
Portfolio changes 283 283
Foreign exchange 78 79


Total sales increase 337 351


Underlying decrease (0.7%) (0.3%)


 

EBITDA*

Earnings before interest, taxation, depreciation and amortisation, seen to be a close proxy for operating cash flow.



  2001 2001
all figures in millions pre-internet post-internet


Operating profit 600 463
Depreciation 118 125


EBITDA 718 588


 

Trading margin

Trading profit (operating profit excluding profit from joint ventures, associates and investments) as a proportion of sales.



  2001 2001
all figures in millions pre-internet post-internet


Total operating profit Group 568 444
Investment income (2) (2)


Trading profit 566 442
Sales 4,166 4,225


Trading margin 13.6% 10.5%


 

Free cash flow per share*

Operating cash flow less taxation paid on operating profits and interest paid, divided by the weighted average number of shares in issue.



  2001 2001
all figures in millions pre-internet post-internet


Operating profit 600 463
Cash conversion 92% 94%
Operating cash flow 553 437
Taxation paid on operating profits (50) (44)
Interest paid (142) (157)


Free cash flow 361 236
Weighted average shares in issue (millions) 795.4 795.4


Free cash flow per share 45.3p 29.6p


* Before goodwill, integration costs and non-operating items.

 
 

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