29th Mar 2018 13:18
Revenue for 2017 came in at
The company booked
A poor first half performance - with continued softness from the second half of 2016 - was followed by a stronger performance in the second half of 2017, with revenue up 5.8% year-on-year.
Quarto's adjusted operating margin narrowed in 2017 to 4.7% from 11.0% previously.
The company said its operating margin was impacted by a combination of factors including high levels of returns, rising cost of goods and royalty expenses as trade sales became a larger part of the product mix, and higher product development costs owing to the integration of becker&mayer.
Quarto said it foresees the "volatile" trading environment to continue in 2018, with ongoing softness in specific channels.
"The group expects a steady recovery with some organic growth in Children's, softer foreign language markets, and continuing remedial action in the Adults portfolio, to drive improved cash generation," Quarto said.
As expected, 2018 results will be "once again" dependent on the second half year performance.
The company has decided to change its year-end from December 31 to March 31, which will "better align with the operational needs of a seasonal business".
"It will enable the business to fully focus on the critical fourth quarter sales period and effect a more balanced spread of revenue between the reported fiscal half years," the company said.
Since the period end, trading has been in line with expectations.
"As previously announced, with the competing pressures of paying dividends, reducing debt and investing in the core business, the board has not recommended the payment of a final dividend," Quarto said.
Shares in the company were down 11%
Related Shares:
QRT.L