Q1 Interim Management Statement

RNS Number : 0959C

Quarto Group Inc

26 April 2012

 



For Immediate Release

April 26, 2012

THE QUARTO GROUP, INC

Q1 INTERIM MANAGEMENT STATEMENT

Quarto (Full List: QRT.L), one of the largest international co-edition book publishers based in London, announces its Q1 Interim Management Statement which includes unaudited revenues and profits for the 3 months ended March 31, 2012. The Group is on track to meet expectations.

The first quarter of the year typically accounts for no more than about one sixth of annual revenues. The performance for the period continued to be solid. Overall, the operating profit was ahead by 35% at $666,000 (2011: $494,000). Bank debt was successfully refinanced, giving rise to a 5% increase in interest costs. EBITDA increased by 6% to $5.6 million.

The Book Publishing segment, based entirely in the English-language markets, helped by improved results in the US, and the UK, increased operating profit by 9%. Digital revenues increased threefold during the period, accounting for almost 3.5% of the segments revenue. The International Co-Edition segment continues to encounter some softness in major markets. Revenues grew by 1% and the normal seasonal operating loss was trimmed by 7%.

For the Trailing Twelve Months to March 31, 2012, revenues rose by 5% to $187.4 million and pretax profit was up by 4.6% at $12.2 million.

As part of its succession planning, the board welcomes Mr Marcus Leaver, 42, who joins the group in the second quarter as Chief Operating Officer. He is expected to take over as Chief Executive Officer next year, when Mr Laurence Orbach will relinquish the role. Mr Leaver, a British native, has extensive book publishing experience on both sides of the Atlantic, and was President of Sterling Publishing,in New York, the publishing arm of Barnes & Noble. He has relocated, with his family, to London.

A summarized trading statement to March 31, 2012 (before amortization of non-current intangibles and exceptional items) is set out below:

	Three months ended March 31				12 months ended March 31				Year ended December 31
	2012		2011		2012		2011		2011
	$000		$000		$000		$000		$000
Revenue	33,932		32,618		187,440		178,015		186,126
Gross profit	12,047		11,128		64,184		59,077		63,265
Overheads	(11,381)		(10,634)		(47,277)		(42,655)		(46,530)
Operating Profit	666		494		16,907		16,422		16,735
Interest	(1,181)		(1,120)		(4,690)		(4,745)		(4,629)
Pre-tax result	(515)		(626)		12,217		11,677		12,106
EBITDA	5,588		5,284		37,620		36,259		37,316

There has been no material change in the financial position of the Group since December 31, 2011.

For further information please contact:

The Quarto Group Inc	0207 700 9004
Laurence Orbach, Chairman and CEO, Mick Mousley, CFO
Buchanan	0207 466 5000
Mark Edwards, Suzanne Brocks, Louise Hadcocks

About Quarto:

Quarto is one of the largest international co-edition book publishers with two principal strands of activity: its Publishing segment publishes books, under imprints owned by the Group; and its Co-Edition Publishing segment creates books that are licensed to third party publishers for publication under their own imprints in many languages around the world. 

 

END

 

 

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