Quarto Group Inc (LON:QRT), the leading global illustrated book publisher, today announced its audited results for the year ended 31 December 2017.
|
Results ($m) |
2017 |
2016 |
|
|
|
|
|
|
|
|
|
Revenue |
152.5 |
154.6 |
|
Adjusted Operating Profit* |
7.2 |
17.0 |
|
Operating (Loss)/Profit |
(17.9) |
16.1 |
|
Adjusted Profit Before Tax* |
3.9 |
13.9 |
|
(Loss)/Profit Before Tax |
(21.2) |
13.0 |
|
Exceptional Items |
24.2 |
0.2 |
|
Loss After Tax |
(18.5) |
(5.3) |
|
Adjusted Earnings per Share from continuing operations |
18.3c |
49.8c |
|
Basic (Loss)/Earnings per Share from continuing operations |
(96.4)c |
46.4c |
|
Net Debt |
64.0 |
61.9 |
|
Total dividend for the year |
nil |
15.0c |
*Adjusted items exclude the amortisation of acquired intangibles and exceptional items.
Included in the 2016 results was a one-time reduction in the amortisation charge arising from a change in the Useful Economic Life (UEL) of capitalised pre-publication costs of $2.1m.
Headlines
· Stronger trading performance in H2 – revenue up 5.8% vs prior year.
· Children’s publishing revenues up 19% (7% excluding becker&mayer acquisition in Q3 2016), now representing third of Group revenues. Up 165% since 2012.
· Foreign Rights business continues to perform strongly – revenue up 6%.
· Frontlist/backlist revenue split comparable year-on-year – 60.3% revenue generated from backlist titles.
· Net debt at $64.0m (2016: $61.9m) down from $75.8m at 30 June 2017.
· As previously announced, with the competing pressures of paying dividends, reducing debt and investing in the core business, the Board has not recommended the payment of a final dividend.
· Transitional year:
o Refocused vision and strategy – now pure-play intellectual property business.
o Tough retail environment, finance team restructured and unsolicited offer.
· Change to financial year-end from 31 December to 31 March to better balance seasonality between fiscal H1 and H2.
2018 Focus
· Momentum from H2 2017.
· Organic revenue and margin growth.
· Continuing restructuring in parts of Adults portfolio to support more operational agility.
· Strengthening the balance sheet as a platform for growth.
Commenting on the results, Chief Executive, Marcus Leaver said:
“While 2017 was, overall, a transitional and challenging year, we are particularly pleased with our stronger trading performance in H2 – our Children’s and Foreign Rights businesses showing significant growth once again, when many others in our industry struggled.
“Quarto is now fully focused on what we do best – creating a variety of books and intellectual property products that inspire life’s experiences for the whole family, and selling them globally through diversified sales channels and partnerships.
“Our strategy remains to grow organically, through innovation and, where applicable, by acquisition, and to continue to drive c. 60% annual recurring revenue through our enduring backlist and to leverage our rich IP catalogue.
“We have moved into 2018 with clear objectives about continuing to realign our portfolio with the broader market and consumer trends, and making the financial and operational improvements required to fulfil our ambitions – including strengthening our balance sheet as a platform for growth.
“Since the year end, the Group has been trading in line with the Board’s expectations.”
Gresham House Strategic PLC (LON:GHS) has a 3.4% ownership of Quarto Group Inc, correct as of 31 January 2018 month end NAV announcement, released 1 February 2018.
