The Quarto Group (LSE: QRT) will announce its Interim results for the six months ended 30 June 2017 on Tuesday 8 August.
Prior to entering the closed period, the Group has been reviewing guidance as given to the market. This process has revealed that the guidance currently in the market uses a publishing-only baseline for 2016 that does not reflect the benefit of $2.1m relating to the reduction in the amortisation of capitalised pre-publication costs - as explained in the FY2016 Results announcement on 31 March 2017 and in the Group's Annual Report. As a result, the baseline guidance for 2017 and beyond has been set too high.
The Interim results will reflect the ongoing soft retail environment in the Group's domestic markets, resulting in a lower-than expected trading performance in the year to date - as well as a more pronounced second-half weighting, natural in a pure-play publishing business. The Group expects its strong publishing programme, combined with the continuing resilience of its publishing portfolio and enduring backlist, to perform significantly better in the second half.
Marcus Leaver, Chief Executive of The Quarto Group, commented:
"This is a transitional year for Quarto as we refocus the Group on our core publishing business. As expected, we have seen a soft retail environment in the first half of the year in both our domestic markets which, combined with the disposal of our trading businesses earlier this year, means that our results will be even more second-half weighted than in previous years."
"We are making good progress towards our strategic objectives and becoming more operationally agile to respond better to an ever-evolving market environment. We look forward to announcing the appointment of a new CFO in due course and to enjoying the full benefits of our new organisational structure and systems upgrade by year-end."
For further information, please contact:
|The Quarto Group
Marcus Leaver, CEO
Dorothée de Montgolfier, Group Director of Communications
|020 7700 9002|
About The Quarto Group
The Quarto Group (LSE: QRT) is the leading global illustrated book publishing group. Our 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 50 countries and in 39 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 and Hong Kong. The group was founded in London in 1976. It is domiciled in the US and listed on the London Stock Exchange.