Quarto posts mixed results as it integrates acquisitions

3rd Nov 2016 11:42

(ShareCast News) - Illustrated book publisher and distribution company The Quarto Group issued its third quarter interim management statement for the quarter to 30 September on Thursday, with group revenue for the nine months through September up 5.9% at of $130.4m.The firm said underlying revenue for the nine months was up 1.2%.Revenue for the group's core publishing businesses for the nine months was $105.3m, up on the prior year by 11.1%, with underlying core publishing revenue up 4.9%.Both Harvard Common Press and becker&mayer, acquired in February and August respectively, were integrating well into the publishing portfolio, according to Quarto's board.Its revenue for the quarter ended 30 September was up 3% at $57.0m, although 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, with underlying core publishing revenue down by 7.6%, which the board said reflected the surge in sales of adult colouring books last year.The group's net debt at period end was $75.0m, down 6.7% over the year.On the basis of current levels of trading and order book visibility, Quarto said it remained confident that it will meet management expectations for the full year and deliver both debt reduction and earnings growth."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," said chief executive Marcus E. Leaver."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."