Marcus E. Leaver, Chief Executive of The Quarto Group LON:QRT, commented:“We have entered the last quarter confident that we will meet management expectations for the full year, reducing debt and delivering growth for a fourth successive year. We are pleased with the integration of Harvard Common Press and becker&mayer into our publishing portfolio, both of which are performing to expectations and complement the organic growth we are seeing in the core business. We have a solid model in place: the right people, high-quality and long-lasting product, efficient processes, a balanced portfolio of imprints and a scalable platform.“
The Quarto Group, Inc. the world’s leading illustrated book publisher and distribution group, today issues its Q3 Interim Management Statement for the three months ended 30 September 2016.
Trading update
Group revenue for the 9 months ended 30 September 2016 of $130.4m was up 5.9% (2015: $123.1m*). Underlying revenue** for the 9 months ended 30 September 2016 was up 1.2%.
Revenue for the Group’s core publishing businesses for the 9 months ended 30 September 2016 of $105.3m was up on the prior year by 11.1% (2015: $94.8m). Underlying core publishing revenue** was up by 4.9%. Both Harvard Common Press and becker&mayer, acquired in February and August respectively, are integrating well into the publishing portfolio.
Revenue for the quarter ended 30 September 2016 of $57.0m was up 3.0% (Q3 2015: $55.4m*). Underlying revenue** for the quarter was down 6.9%.
Revenue for the quarter for the Group’s core publishing businesses was up on the prior year by 4.6% at $46.9m (Q3 2015: $44.9m). Underlying core publishing revenue** was down by 7.6%, reflecting the surge in sales of adult colouring books last year.
Financial position
The Group’s net debt on 30 September 2016 was $75.0m, down 6.7% over the year (30 September 2015: $80.0m).
Outlook
On the basis of current levels of trading and order book visibility, the Group remains confident that it will meet management expectations for the full year and deliver both debt reduction and earnings growth.