25 Mar 2020 07:00
The Quarto Group Inc.
("Company", "Quarto" or "Group")
Update re 2019 Results
The Quarto Group Inc., (LSE: QRT), the illustrated book publisher and distribution group, today issues the following update.
2019 Results
The Group expects to report the following results for the year ending 31 December 2019, and does not expect any deviation from these published figures once the audited results are announced:
2019 US$ | 2018 US$ Restated | |
Revenue | 135.8 | 149.3 |
Profit before tax | 2.9 | (0.6) |
Other comprehensive income | 0.1 | (2.2) |
Total comprehensive income | 3.0 | (2.8) |
Non-current assets | 83.4 | 79.5 |
Current assets | 81.4 | 92.3 |
Current liabilities | (128.2) | (74.1) |
Non-current liabilities | (15.5) | (79.7) |
Net assets | 21.1 | 18.0 |
Highlights
· Revenue of $135.8m down 9% on prior year of $149.3m.
· Banking facilities extended in January 2020 to 31 July 2021.
· Open Offer successfully completed in January 2020 raising $16.5m net of expenses and reducing net bank debt to $33m.
The Board is pleased with this expected result which reflects an improvement on its year on year performance.
Commenting on the expected results, Group Chief Executive Officer, C.K. Lau said:
"We expect to report profit for the year ahead of the prior year and this represents a pleasing result.
The successful Open Offer and the subsequent reduction in bank debt, coupled with the extension of our banking facilities, provides a stable financial platform for the Group.
The long-term impact on the global economy of the Covid-19 pandemic is expected to be significant. Whilst it not possible to estimate the financial impact of the pandemic on the Group at this stage, we are taking proactive measures to mitigate our operational risk and manage our business and cash flows. With a more sustainable balance sheet, we are now a more robust business that can respond quickly to the challenges ahead."
Update re 2019 Audit
The Group's results are as yet unaudited and the uncertainty as to the future impact on the Group of the recent COVID-19 pandemic is being considered as part of the Group's adoption of the going concern basis. Thus far, we have not observed any material impact in trading performance due to COVID-19, although order volumes in the USA and UK have been dropping in recent days.
The Board notes the financial support commitment made by the UK Government as part of a package to support businesses in recent days. Whilst there is still uncertainty around this package, the Board believes, based on the initial details circulated as part of the announcements, that the Group would qualify for some elements of this financial support.
Based on the above indications, the Board believes that it will remain appropriate to continue to adopt the going concern basis in preparing the financial statements. However, there are downside scenarios which may indicate the existence of a material uncertainty which could cast doubt on the Group's ability to continue as a going concern.
As part of the year end audit process, which is ongoing and not yet complete, it has been decided to amend the treatment of attributable costs and overheads that should be capitalised under IAS 38, as prepublication costs. In the past, an element of overheads relating directly to indirect costs were capitalised which represents an error. There was no impact on the results of the Group for the year ended 31 December 2018 as a result of this change.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (596/2014) ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
The Quarto Group Inc. | |
Michael Clarke, Chief Administrative Officer | +44 (0)20 7700 9006 |
About The Quarto Group
The Quarto Group (LSE: QRT) creates a wide variety of books and intellectual property products, with a mission to inspire life's experiences. Produced in many formats for adults, children and the whole family, our products are visually appealing, information rich and stimulating.
The Group encompasses a diverse portfolio of imprints and businesses that are creatively independent and expert in developing long-lasting content across specific niches of interest.
Quarto sells and distributes its products globally in over 50 countries and 40 languages, through a variety of sales channels, partnerships and routes to market.
Quarto employs c.330 talented people in the US and the UK. 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 quarto.com or follow us on Twitter at @TheQuartoGroup.