Quarto shares surge on takeover offer as losses mount

London based publisher of illustrated books Quarto confirmed that it had received an approach to acquire the company at a price it considers attractive, while first-half losses increased and revenue fell.

The London-listed company said the approach was made at a price "reflective of the inherent value of the business as a global publishing platform", though discussions are still at an early stage.

On first-half results, said a "continued softness in the retail environment" was to blame for revenues falling $8m to $50m, with pre-tax losses skyrocketing to $9.2m from $1.9m in the same period last year.

"It has been a transitional period with the completion of the disposals of our non-core businesses while facing a challenging trading background in our key domestic markets," said Marcus Leaver, chief executive.

The head of Quarto, which has 11 offices including London, Brighton, Bristol, New York City, Hong Kong and Sydney and is known for books such as The Sex Bible for People over 50 and Cooking with Cannabis, also stated, "We have seen lower initial orders and reprints from some large customers. In particular, most of our adult imprints have performed below our expectations."

After the announcement of the proposed takeover, shares jumped 18.49% to 157.99p by the close on Tuesday despite the poor half yearly results.