The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Automation has transformed cash-flow forecasting at Pearson

Artificial intelligence revolutionized cash-flow forecasting at educational services provider Pearson, allowing it to respond quickly to the challenges created by the pandemic.

Photo: iStock

When James Kelly, senior vice-president treasury, risk management and insurance, joined Pearson in 2017 he decided to focus on areas where he felt treasury could add the most value – providing capital-structure advice (dividends, share buybacks), debt raising, risk management, and in-house cash expertise.

Pearson is a leading player in the learning market, with approximately 20,000 employees providing customers in nearly 200 countries with digital content, assessments, qualifications and data. In the last financial year, the company made an adjusted operating profit of £385 million.

“One of the key things we have done is try to use software as a service and keep this as simple and effective as possible,” he says. “The methods we had for analysing cash flow weren’t really good enough for us to fully understand the key drivers of cash flow, where the pain points were, and how to improve working capital.”

The initial challenge was that the company had a complicated set up of 600 accounts across 60 different currencies and 30 businesses that were running their own treasury centres and cash-management operations with limited reporting to the centre.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?