Quarto Group Inc Trading Update (5202V)
31 January 2017 - 6:00PM
UK Regulatory
TIDMQRT
RNS Number : 5202V
Quarto Group Inc
31 January 2017
The Quarto Group, Inc.
Trading Update
The Quarto Group, Inc. ("Quarto" or "the Group"), the leading
global illustrated book publisher, is pleased to provide the
following trading update for the year ended 31 December 2016.
A resilient performance in the core publishing businesses means
the Group expects to report profits in line with management
expectations, excluding the impact of our Books & Gifts Direct
(BGD) business referred to below.
This expected result comes against a difficult trading
background in the UK in the final quarter and a tough comparative
given the global success of colouring books in 2015. The diversity
and quality within our portfolio have been key factors in this
performance, and the businesses that we acquired during 2016 -
Harvard Common Press and becker&mayer - have both been
successfully integrated and have surpassed our performance
expectations for the year. We have examined the useful lives of our
published titles and have reflected the consistency of those lives
across our portfolio of imprints. The benefit of this change, which
will be included in the result for the year, reflects more
accurately the pattern of our backlist revenue over an extended
period and the inherent value of the intellectual property owned by
the Group.
With a continued decline in performance in Books and Gifts
Direct (BGD), the Board has reaffirmed that BGD is not a core
business and negotiations with a potential acquiring group are
ongoing. Heads of Terms have been signed and the deal is
anticipated to close in the coming weeks. The proposed total
consideration of A$5.75m comprises A$1.0m of cash consideration
payable on completion, with a further A$4.75m in interest-bearing
loan notes which are repayable out of cash generated by the
business, but with a long-stop date of 10 years. Assuming the
transaction completes and the loan notes are repaid in full, this
will result in a total writedown of approximately $11.0m.
Net debt on 31 December 2016 was $62.2m (2015: $59.5m). The
increase was a result of both poor trading within BGD as well as
negative working capital timing movements in the final quarter,
which we expect will reverse in the first quarter. However, due to
the strong underlying performance of the business, the Board
expects to recommend an increase in the company's final
dividend.
The Group will report its preliminary results on 22 March
2017.
Marcus Leaver, CEO, commented:
"We performed resiliently in 2016, capitalising on our strengths
and expanding our reach in challenging domestic and international
markets. We made two strategically important acquisitions, which
are already contributing positively to the Group and have allowed
us to celebrate our fortieth anniversary with our strongest
publishing profits ever. We continue to invest in content with a
portfolio of creative businesses underpinned by a scalable platform
for organic and acquisitive growth. The anticipated disposal of BGD
will allow us to focus more fully on the clear financial and
operational improvements we require to fulfil our ambitions."
- ENDS -
For further information please contact:
The Quarto Group
Michael Connole, CFO
Dorothée de Montgolfier, Group
Director of Communications 020 7700 9002
Bell Pottinger
Elly Williamson 020 3772 2573
About The Quarto Group:
The Quarto Group (LSE: QRT) is the leading global illustrated
book publishing group. Its mission is to make and sell great books
that entertain, educate and enrich the lives of adults and children
around the world.
Quarto creates and owns proprietary content, publishing books
from a diverse portfolio of imprints that are creatively
independent and expert in developing long-lasting content across
specific niches of interest.
Quarto sells books across 45 countries and in 35 languages
through a variety of traditional and non-traditional channels,
while constantly looking for new ways to create and deliver content
that people need.
Quarto employs over 400 talented people in the US, UK, Hong
Kong, Australia and New Zealand. The group was founded in London in
1976. It is domiciled in the US and listed on the London Stock
Exchange.
For more information, visit quartoknows.com or follow us on
Twitter at @TheQuartoGroup.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBMMPTMBBJBRR
(END) Dow Jones Newswires
January 31, 2017 02:00 ET (07:00 GMT)
Quarto (LSE:QRT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Quarto (LSE:QRT)
Historical Stock Chart
From Apr 2023 to Apr 2024