Money for jam
Exams are a profitable business, especially if you happen to be an exam board. The bad news is that exam fees have gone up at such a rate that it has attracted the attention of the DCSF and the QCA. Back in May we wrote about the QCA saying ‘as fees had been increasing at well above the rate of inflation that it be presented with any proposals for criteria to apply that might be appropriate for limiting awarding body fees’. Worrying stuff for Edexcel, OCR and AQA? Not yet, as they all seem to be making plenty of money right now, if their results are anything to go by. Leading the pack in terms of profitability is Pearson’s Edexcel, who made £25.1m last year followed by AQA with £15.9m and OCR with just £5.7m – giving a total of £46.7m.
What is interesting here is not just the amount of profit each board is making but why Edexcel is making so much more than OCR and AQA. Part of the answer lies with the different mix of qualifications each has in their exam portfolio, but undeniably the profitability leadership of Edexel is very much down to their strong management team and the benefits of being owned by Pearson (capital costs, scale and the ability to amortise IT and development costs internationally).
While AQA and OCR have a tough competitor in Edexcel they aren’t above thinking they are perhaps a bit more important than they really are. An example of their hubris can be seen in the AQA’s 2006 Annual Review which, after the introduction by new Chair Sue Rogers, is followed by her full-page photo. Talented she may be, but we think the report would have been better off without it.