Q3 Interim Management Statement

RNS Number : 4557E

Quarto Group Inc

04 November 2015

 

The Quarto Group, Inc.

Q3 Interim Management Statement

The Quarto Group, Inc. ("Quarto" or "the Group"), the world's leading illustrated book publisher and distribution group, today issues its Q3 Interim Management Statement for the quarter to 30 September 2015.

Trading update

Revenue for the quarter to 30 September 2015 was broadly flat at $54.4m (quarter to 30 September 2014: $54.5m). Underlying revenues* for the quarter were down 5.3%.

Revenues for the Group's core publishing businesses were up on the prior year by 7.9% at $44.9m (2014: $41.6m). Underlying publishing revenues* were up 1.3%.

The trading of our Books & Gifts Direct business faces challenges arising from the difficulties in the Australian and New Zealand economies and their weakening currencies.

Year to date revenue was $120.6m (2014: $120.1m). Underlying revenues* for the year to date were down 4.8%. 

Financial position

The Group's net debt on 30 September 2015 was $80.0m (30 September 2014: $82.3m).

Outlook

On the basis of current levels of trading and our order book, the Group is on track to meet management expectations for the full year and deliver both debt reduction and earnings growth. 

Marcus Leaver, CEO, commented:

"This update shows the increasing strength of our performance throughout the year. Our third quarter saw clear revenue growth in our core publishing businesses and year to date our revenue performance is ahead of the same period last year, even once the economic and currency challenges faced by our Australian and New Zealand business are taken into account. A good performance in our traditionally strongest fourth quarter will help underpin our full year targets of bringing debt down further and increasing earnings once again."

*Underlying revenues and underlying publishing revenues have been adjusted for businesses acquired in the last 12 months.

Ends

For further information please contact:

The Quarto Group

Marcus Leaver, CEO                                                                                                            [phone]

Michael Connole, CFO

Bell Pottinger

Elly Williamson/Lucy Stewart                                                                                            [phone]

 

About The Quarto Group

The Quarto Group (LSE: QRT) is the world's leading illustrated book publisher and distribution group and is listed on the London Stock Exchange. Quarto employs about 400 talented and creative people in five distinct but complementary businesses - Quarto International Co-editions Group; Quarto Publishing Group USA; Quarto Publishing Group UK; Quarto Hong Kong; and Books & Gifts Direct, Australia & New Zealand.

The Group is well positioned in resilient segments of book publishing with rich reserves of Intellectual Property. Quarto is uniquely positioned for growth as the industry adapts to new means of marketing, sales and routes to market. The Group's headquarters are in London where the Company was founded in 1976.

www.quartoknows.com

 

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