(Alliance News) - Quarto Group Inc on Wednesday reported a drop in its half-year profit and revenue as the overall book market proved to be "more challenging" than expected.
Shares in Quarto were down 15% at 131.68 pence each in London on Wednesday morning.
The London-based illustrated book publisher said in the six months to June 30, pretax profit fell by 61% to USD2.6 million from USD6.6 million a year prior as revenue dropped by 16% to USD52.0 million from USD61.9 million the year before.
This was partly driven by the Quarto Distribution Services and Smart Lab divisions being discontinued, however, the company stressed that this has allowed it to focus on its core publishing business.
The company did not declare an interim dividend, unchanged from a year ago.
Going into the second half of the year, Quarto said it expects to see the same challenges which have been impacting trade sales over the last six months, but expects to see a more buoyant market as inflation is expected to ease in the UK and the US.
Chief Executive Officer Alison Goff said: "I am confident we have the right plans in place to capture all potential opportunities. The board remains focused on keeping costs under control, driving sales, and developing further growth strategies for the remainder of 2023, 2024 and beyond."
By Sabrina Penty, Alliance News reporter
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