Quarto Group Inc (LON:QRT) Chief Executive Officer Marcus Leaver caught up with DirectorsTalk to discuss their half-year results ending 30th June 2016 and their acquisition of becker&mayer
Q1: Now Marcus, you announced today Quarto Group’s half-year results for the six months ending 30th June this year, can you talk us through the financial highlights?
A1: Yes, absolutely. Look, like every half-year results in our business because we’re very second half weighted in a portfolio there’s much to be pleased about and much to be worked on between now and the year-end. It’s been a steady first half and I feel confident of our people and I feel confident of our product that we shall provide a fourth successive year of growth.
Q2: How are the core divisions performing?
A2: Well the publishing businesses are doing very well, in total our publishing revenue is up 16% and our publishing operating profit is up by $1.2 million so quite pleased with the publishing. I think the look of the programme for the second half of the year allows us visibility to think that we will provide us a fourth successive year of growth added to which the acquisition we made yesterday becker&mayer which is our fifth creative hub in the US in Bellevue, Washington looks as though that’s a very good new avenue of business for us, an adjacency and a step changer in our acquisition strategy which we talked about at the full year.
Q3: Now I was just going to ask, you announced the acquisition yesterday, can you tell us more about that business and how it fits in with your strategy?
A3: Yes so we looked to build on people and product that we don’t have in our portfolio and this business is based in the Pacific Northwest of the US, away from the main place of publishing in the US which is New York. We liked the idea that this business is based in Bellevue, Washington, we liked the fact that its people have got merchandising experience, a background, we feel that’s very important in this day and age, it’s not just about selling books to our customers but actually putting books in the end customers hands and the sort of books they publish, which are quite high specification and some licence product, is the sort of product that we don’t currently have in Quarto Group’s portfolio.
Q4: So what would you say the outlook for Quarto Group for the full year is?
A4: So the outlook for the full year I think we are resolute on reducing debt as we said, despite the acquisition and if you look at the way we structured the acquisition we should not harm the outlook on the debt for the full year and added to which we think that we will provide a fourth successive year of growth for this company which is extremely gratifying for all the hard work that everyone around the world is doing.
