Skip to content

Three Quick Facts: Pearson, Direct Line Insurance and Shoe Zone


Three things you need to know in the financial markets this morning from investment writer, Tony Cross.


Full year results from Pearson LON:PSON are out this morning, with underlying revenues off by 10%. The COVID lockdown may have bolstered online learning but it has simultaneously shuttered assessment centres. Looking ahead however the company anticipates a stronger 2021, especially once the challenging comparatives of Q1 are overcome. Pent up testing demand stands to provide further support in H2. There’s a lot of detail in the report but with the stock still below pre-COVID levels, it may be worth a closer look.

Direct Line Insurance

There was a fairly stable set of results out from Direct Line LON:DLG this morning, with the company showing no real surprises over the year. Profits have been put under a little pressure after an increase in major weather costs, but COVID has reduced claim frequency. Overall, the company notes the pandemic has had a net positive impact on the numbers, whilst the capital position remains robust. As a result of this, another meaningful dividend has been declared along with a £100m share buyback scheme.

Shoe Zone

Full year numbers from Shoe Zone LON:SHOE make for an interesting read. The company is perhaps one retailer that will continue to benefit from always having a physical presence, given the uncertainties in fitting shoes and also the weight vs price, especially at the cheaper end of the market. The pandemic has however taken a toll, with revenues falling by almost a quarter for the year to October 3rd 2020. The previous year’s £6.7m profit has slipped to a £14.6m loss, resulting in a suspension of the dividend, whilst rolling store closures over the last five months mean that a return to profitability seen as is unlikely before October 2022.

Sign up for three quick facts and more with our Free Daily Digest newsletter, every weekday morning.

Looking for great investing ideas? Sign up to our free newsletter.

Join us on WhatsApp

This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

CME Group
FP Markets

Back To Top