| CATEGORY: SMALL CAPS NEWS SECTOR: MEDIA |
Quarto hit as US customer files for bankruptcy |
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Mon 08 Jan 2007
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| QRT - Quarto Group |
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| Latest Prices |
| Name |
Price |
% |
| Quarto Group |
123.00p |
+2.50% |
| |
| Media |
3,787 |
+0.42% |
|
LONDON (SHARECAST) - Book publisher Quarto suffered losses Monday after one of its significant US customers, Advanced Marketing Services filed for protection under Chapter XI of the Bankruptcy Code.
Sales from Quarto to AMS, which supplies books to the warehouse club market such as Costco, were £2.3m for the year to 31 December 2006.
Until the filing, AMS had been current with their payments, and the filing was entirely unexpected, as there were no signs of cash flow difficulties, said the UK group.
“Although it's too early after the end of our financial year for us to update shareholders on 2006 results, we were anticipating that our results, before the exceptional item, would be substantially in line with our previous expectations,” said chief financial officer Michael Mousley.
“Encouragingly, it's worth noting that, in spite of not receiving expected end-of-year payments of some $1.5m from AMS, Quarto's cash generation was close to target.”
“The impact on Quarto's business, going forward, is not easy to assess at this early stage,” he added.
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