Quarto Group Inc (LON:QRT), the leading global illustrated book publisher and distribution group announced today its unaudited half year results for the six months ended 30 June 2016. CEO Marcus Leaver chats to DirectorsTalk about the results and talks us through the financial highlights, explains how the core divisions performing, tells us more about becker&mayer and how it fits with Quarto’s strategy and finally provides an outlook for the year.
Financial Highlights
· Revenue of $73.3m up 8% in the period (H1 2015: $67.7m1)
· Publishing revenue of $57.8m up 16% (H1 2015: $49.9m)
· Adjusted2 group operating profit of $0.4m (H1 2015: $0.7m1)
· Core publishing adjusted operating profit up by $1.2m
· Adjusted loss before tax of $1.1m (H1 2015: $0.8m1)
· Loss before tax of $1.4m (H1 2015: $1.6m1)
· Continued focus on reducing net debt: $8.5m reduction to $72.5m (H1 2015: $81.0m)
· Interim dividend maintained at 5.13c/3.93p3 (H1 2015: 5.13c/3.35p) 3
Operational Highlights
· 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 been successfully integrated.
· Acquisition of becker&mayer, announced on 8 August 2016, adds another creative hub in the US with a sizeable children’s publishing element to it.
· 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 also growing, with Children’s revenues up 36%.
[1] Restated as set out in Note 1.
2 Throughout this document, adjusted measures are stated before amortisation of acquired intangible assets and exceptional items.
3 Dividend per share is declared in cents per share and paid in sterling translated at the spot rate at the time of payment. For the purpose of illustration above, we have used the closing spot rate on Friday 5 August of $1 : £1.306.
Commenting on the results, Quarto Group, Inc. Chief Executive, Marcus Leaver said: “It has been another six months of progress for the Group. Importantly, the acquisition of becker&mayer adds another creative hub in the US and continues to build long-term shareholder value. As we have highlighted before, we are 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.”