(Alliance News) - Book publisher Quarto Group Inc on Thursday reported a revenue decrease but swung to profit on reduced exceptional costs.
In 2019, revenue slipped 9.0% to USD135.8 million from USD149.3 million. Quarto reported a pretax profit of GBP3.8 million, swinging from a GBP57,000 loss in 2018.
Exceptional costs were much-reduced, down to USD419,000 from USD5.2 million. Exceptional costs in 2019 were largely down to refinancing costs of USD387,000. In 2018, refinancing costs totalled USD1.4 million.
Quarto said: "In the past two years, the board and senior management have been focused on cash generation in order to return the group to a stronger financial position. Our comprehensive cost-out programme is now bearing fruit as it has saved a significant amount of operating expense. We have right-sized our publishing program in order to reduce investment and to focus on creating strong purposeful book titles.
"We have continued to suspend payment of dividends to reduce our cash outlays. All these initiatives have helped the group return to our first profit since 2016."
Chief Executive Officer Chuk Kin Lau said: "The long-term impact on the global economy of the Covid-19 outbreak is expected to be significant. Whilst it not possible to estimate the financial impact of the outbreak, we have taken proactive measures to mitigate our operational risk and manage our business and cash flow. With a more sustainable balance sheet, we are now a more robust business that can respond quickly to the challenges ahead."
Shares in the company were 2.0% lower at 48.00 pence each in London on Thursday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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