Pearson books a profits lift after Christmas story is good

Financial Times and Penguin publisher Pearson today upgraded its 2011 profit forecasts, saying it had a strong Christmas period and bucked the wider economic gloom.

Chief executive Dame Marjorie Scardino expects a 10% rise in profits, with earnings per share of 83p against 77.5p a year earlier.

The FT Group enjoyed "good growth" from digital and subscriptions although advertising was weak. Penguin was also "strong" during the key pre-Christmas season, thanks to hits such as Jamie Oliver's Great Britain and Jeff Kinney's Diary of a Wimpy Kid. Pearson's biggest division, education, offset weakness in some developed markets by expanding in digital.

The shares, which recently hit their highest since 2001, slipped 36p to 1209p as the City is used to Pearson beating expectations.

But broker Numis Securities raised its 2011 profit forecast to £875 million and hiked it target price to 1374p.

Scardino, the FTSE 100's first and longest-serving female boss, has just completed her 15th year in charge and unveils full results on February 27.