Education group Pearson has reported a 4% increase in its underlying adjusted operating profit to £250m in its H1 results.

In the six months to 30 June, Pearson also oversaw a 2% growth in its underlying group sales as it revealed that each segment in its business had been performing “broadly in line with expectations”.

Pearson, which delivers educational courseware, assessments, and digital services, also reported a “strong” free cash flow performance up £77m, to £27m.

Beyond 2025, the group said it is positioned to deliver “mid-single digit” underlying sales CAGR and sustained margin improvement that will equate to an average increase of 40 basis points per annum, by “continuing to drive performance in the core business, executing synergies and expanding into adjacent markets”.

Pearson chief executive, Omar Abbosh, suggested that “significant demographic shifts and rapid advances in AI” will be important drivers of growth in education over the coming years.

“This plays to Pearson's strengths as a trusted provider of learning and assessment services,” Abbosh added.

“We are implementing plans across all of our businesses that will see us deliver better products & services with greater efficiency. We're also focusing on opportunities to progressively build our presence in materially larger and higher growth markets in which we are well positioned to succeed, with a particular focus on early careers and enterprise skilling.

“Our good strategic and financial performance in the first half of the year sets us up to achieve our guidance for the current year and for 2025, and we expect thereafter to continue to deliver attractive growth with progressive improvements in our margins alongside consistently strong cash generation.”

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