Quarto remains in red despite higher revenue

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."