Independent publisher Quarto bore the brunt of the failure of its US distributor today as profits tumbled by more than half.
The “coffee-table publisher” of illustrated titles on topics ranging from DIY and gardening to cooking saw underlying pre-tax profits slip to $745,000 (£444,000) from $1.7 million last time, in an “undeniably challenging” period, according to chief executive Marcus Leaver.
The failure of wholesaler HDA delivered a $500,000 blow to the bottom line while revenues also dipped 3% to $65.6 million.
Shares in the London-based business fell 5%, or 7.5p, to 144p as the publisher also saw varying fortunes in its efforts to improve trading in Australia and New Zealand, which is now one display marketing business under the Books & Gifts Direct brand.
Quarto anticipates a better second half based on stronger orders and foreign sales.
The interim dividend is unchanged at 3.35p.
