Quarto remains in red despite higher revenue

9th Aug 2016 15:56

(ShareCast News) - Illustrated book publisher and distribution company The Quarto Group announced its unaudited half year results for the six months ended 30 June on Tuesday, with revenue of $73.3m up 8% in the period, compared with $67.7m a year ago.The London-listed firm reported publishing revenue of $57.8m, up 16%, with adjusted group operating profit of $0.4m, down from $0.7m.Core publishing adjusted operating profit rose by $1.2m, however.Quarto's adjusted loss before tax for the period was $1.1m, widening from $0.8m, while its reported loss before tax of $1.4m was less than $1.6m in the comparative period.The board had a continued focus on reducing net debt, and achieved an $8.5m reduction to $72.5m during the half.It declared an interim dividend, maintained on a US dollar basis at 5.13 cents or 3.93p.On the operations front, Quarto reported 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 also been successfully integrated, it said.The acquisition of becker&mayer, announced on 8 August, added another "creative hub" in the US with a sizeable children's publishing element.Quarto described a "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 were still growing, with Children's revenues up 36%."It has been another six months of progress for the Group," said chief executive Marcus Leaver."Importantly, the acquisition of becker&mayer adds another creative hub in the US and continues to build long-term shareholder value."Leaver said that, as indicated in previous updates, the group was becoming 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."