Shares in Quarto Group, a London-listed book publisher, have taken a hit following the company’s announcement of a decrease in pretax profit for the first half of the year. The company also stated that it anticipates a challenging trading environment in the second half.
As of 0916 GMT, shares were down 11% at 137.50 pence, representing a decline of 17.50 pence.
Quarto Group reported that pretax profit for the period of January to June dropped to $2.6 million, compared to $6.6 million during the same period last year. The decline can be attributed to reduced consumer demand and slower business-to-business sales, resulting from inventory management by customers.
Furthermore, the company’s revenue decreased from $62 million to $52 million. This decline can be partly attributed to the scaling back of Quarto Distribution Services and the disposal of Smart Lab. Additionally, soft trade sales and a reduction in custom sales following a robust performance in 2022 played a role in the revenue decrease.
Alison Goff, the Chief Executive of Quarto Group, expressed confidence in the company’s ability to seize potential opportunities. Goff stated, “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.”
