Pearson the performer

Marjorie Scardino today declared 2010 to be a year of "vigorous" growth for Pearson in the face of "anaemic" markets. Operating profits will be up 20% at about £850m, enough for a 16% rise in earnings per share. Terrific stuff: Pearson has doubled both tallies over the past five years. Scardino's strategy of transforming her eclectic inheritance by investing in education and digital ventures has been vindicated. Just don't point out that, on arrival in 1997, she pledged to double the share price, then 666p, within five years. The goal was achieved (and massively surpassed) during the turn-of-the-century dotcom frenzy. But it was a mirage. Pearson stands at £10.51 today. That is still a massive outperformance of the lousy media sector (and a total return of 151% once dividends are included) – but a reminder to chief executives never to offer share price targets.