Quarto remains in red despite higher revenue

Illustrated book publisher and distribution company The Quarto Group announced its unaudited half year results for the six months ended 30 June on Tuesday, with revenue of $73.3m up 8% in the period, compared with $67.7m a year ago.

The London-listed firm reported publishing revenue of $57.8m, up 16%, with adjusted group operating profit of $0.4m, down from $0.7m.

Core publishing adjusted operating profit rose by $1.2m, however.

Quarto’s adjusted loss before tax for the period was $1.1m, widening from $0.8m, while its reported loss before tax of $1.4m was less than $1.6m in the comparative period.

The board had a continued focus on reducing net debt, and achieved an $8.5m reduction to $72.5m during the half.

It declared an interim dividend, maintained on a US dollar basis at 5.13 cents or 3.93p.

On the operations front, Quarto reported continued strength in the US market with revenue up by 17% and adjusted operating profit up by 39%.

Harvard Common Press, acquired in February, has also been successfully integrated, it said.

The acquisition of becker&mayer, announced on 8 August, added another “creative hub” in the US with a sizeable children's publishing element.

Quarto described a “disappointing result” from Books & Gifts Direct, with adjusted operating profit down $1.1m but with recovery expected in the second half, based on order book visibility.

Children's and foreign rights revenues were still growing, with Children's revenues up 36%.

“It has been another six months of progress for the Group,” said chief executive Marcus Leaver.

“Importantly, the acquisition of becker&mayer adds another creative hub in the US and continues to build long-term shareholder value.”

Leaver said that, as indicated in previous updates, the group was becoming increasingly second-half weighted.

“Trading remains on track, with healthy order book visibility, and we remain confident of both reducing debt and delivering growth for a fourth successive year."