FT-to-Penguin publishing group Pearson remains on track for record annual profits after a continued strong performance in the fourth quarter.

London-based Pearson said it had seen increased circulation and advertising at the Financial Times, while its Penguin publishing arm benefited from a strong year-end publishing and selling season.

Chief executive Marjorie Scardino said: "A strong all-round performance in our key fourth quarter selling season capped another very good year to produce Pearson's highest-ever profits."

The group's education division had seen continued revenue as it benefited from increased investment in educational testing and technology.

The sale of the group's Government Solutions business to Veritas Capital is set to be completed in the first quarter of the current financial year.

Pearson shares hit a four-year high last week amid speculation that private equity group Kohlberg Kravis Roberts was mounting a é7bn bid for the group.