The Quarto Group reported that revenue for the first half of 2004 rose 4.4%, to £31 million ($56 million), while operating income increased 15.8%, to £2.1 million ($3.8 million). The sales increase was limited by currency translations; in constant currency terms sales were up 14%. In his letter to shareholders, Quarto chairman Laurence Orbach reported that, on a regional basis, sales and profits in the U.S. were up, showed a "small upturn" in continental Europe and Southeast Asia and fell in the U.K.
In its co-edition division, sales increased 4%, to £17.1 million, led by sales in Quarto's Rockport subsidiary, where the Fair Winds Press imprint did particularly well. In the publishing division, sales rose 4%, to £13.9 million, driven by a rebound in its remainder operation, Book Sales. Orbach noted that after a disappointing 2003, in which booksellers "paid their bills by returning merchandise," the return rate was normal in the first half of 2004, helping to boost profits by 45%. The company's American art book group also had improved results in the first six months of the year.
Results for the first part of 2004 do not include Creative Publishing, which Quarto bought in early July or Aurum Press, the London nonfiction publisher acquired in late July. Orbach said he is expecting "small contributions" from the two companies in the second half of the year.
