reports
Update: Good visibility into H2
As in FY14, Quarto’s FY15 results will be heavily H2-weighted. The strong order book means that we maintain our FY15 forecast for a 10% increase in normalised PBT, despite the slightly higher H1 loss than the prior year. The group is making strong progress in children’s publishing and in foreign language sales, and is also proactive in addressing opportunities offered by digital channels. The balance sheet continues to strengthen, giving flexibility for complementary acquisitions, like that ...
Update: Reaching out
Quarto’s final results show it is re-energised and focused on top-line growth via expansion of channel, territory and format, while generating cash to reduce debt. The group has launched a new visual identity and stronger brand focus in illustrated and children’s publishing. The rating has started to rebuild as the market finally starts to look beyond the balance sheet and appreciate the opportunities in a sector that is regaining some momentum, particularly in children’s books. Yet the sh...
Update: Strengthening children's list
Good progress in Q3, with underlying revenues ahead by 5.3%, means that year-to-date underlying revenues have edged ahead, despite the slow first half. The group is on track to meet our unchanged FY14 forecasts. Our expectations for resumed organic growth are buoyed by the investment in high-quality children’s content as part of the strategy to grow the top line while lessening the debt. The first signs are emerging that management’s plan will deliver both elements. The shares offer a premiu...
Update: Strong H2 in prospect
Quarto’s 2014 results are expected to be more than usually weighted to the second half year. Interim results were disappointing, but management has good revenue visibility and the benefits of the group’s restructuring are starting to flow through. We have reduced our 2014 PBT estimate by $0.8m, but left 2015 unchanged since the reduction is due to non-recurring items. Quarto’s debt reduction is well on track and the maintained interim dividend implies a yield of 5.5%. Quarto has a solid ni...
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