Quercus Publishing plc

September 15, 2009 02:00 ET



                            QUERCUS PUBLISHING PLC ("QUERCUS" OR "THE COMPANY")
                                              INTERIM RESULTS

Quercus  Publishing  Plc  (PLUS: QUPP), the PLUS-listed publishing company,  today  announces  its  interim
results for the six months ended 30 June 2009.

Summary of Information:

    *       Revenue for the half year increased by 54% to GBP 5.55 million (2008: GBP 3.60 million).
    *       Operating loss for the first half reduced by 79% to GBP 0.10 million (2008: loss of GBP 0.49
    *       Loss before tax reduced by 56% to GBP 0.26 million (2008: loss of GBP 0.59 million).
    *       Quercus' sales through retailers in the UK (as measured by Nielsen BookScan) increased 52% in the
            period, while the total market decreased by 1.3%.
    *       Quercus' market share increased from 0.21% to 0.33% - an increase of 57%.
    *       Company achieved its first number one bestselling adult hardback fiction title in the UK with Stieg
            Larsson's THE GIRL WHO PLAYED WITH FIRE.

Mark Smith, Chief Executive of Quercus Publishing Plc, commented:

"In  the current economic climate and what is traditionally the quieter part of the year, these first  half
results  are  particularly  pleasing and demonstrate the further development of  the  Company's  publishing
strategy.  The  revenue increase in both our contract and trade businesses, coupled with the  cost  cutting
programme  that  was  implemented at the end of 2008 has reduced the half year  loss  substantially.  These
results  have  exceeded Directors' expectations and praise is in order for all our staff  who  have  pulled
together in a difficult and challenging environment.

Praise  is  also  due  to  our authors who continue to deliver both commercial and  literary  success.  The
publishing  programme is evolving and Quercus continues to increase its offering of quality narrative  non-
fiction, crime and thrillers, translated fiction, literary fiction, women's fiction, historical fiction and
fiction for children aged 9+. The future programme has taken great strides in its creativity, structure and
focus during the first half of the year, the benefits of which will be seen in the years to come."

David Potter, Chairman, commented:

"The  result  for  the first half of the year reflects both the success of our Stieg Larsson  trilogy,  the
third  volume  of which will be out shortly, and also our steadily widening portfolio of authors.  We  have
also  made  good progress on the contract publishing side of the business despite the economic problems  in
our most important market, the United States.

The  success  of our authors and their increasing resonance with readers throughout the world continues  to
enhance the value of the business.

These stronger results position us well for the continued challenge in the "credit crunch" environment, and
the  board  believes that trading conditions will continue to be difficult for some while to come.  We  are
also conscious of the growing interest in e-books, e-publishing and the digital distribution of content and
are beginning to incorporate these new opportunities into our core business.

We  are  still running on a "belt tightened" basis and I would like to thank the management and  staff  for
their dedication during a very busy period."

First Half Publishing Highlights:

Stieg  Larsson's  second instalment of the Millennium trilogy, THE GIRL WHO PLAYED WITH  FIRE,  became  the
first translated fiction title to top the original fiction bestseller list in the United Kingdom.

THE GIRL WITH THE DRAGON TATTOO, book one of the Millennium Trilogy, won the First Direct Crime Thriller of
the Year Award at the British Book Awards and was voted Waterstone's Book of the Year.

THE ARMIES by Evilio Rosero was the winner of The Independent Foreign Fiction Prize.

Colin  Cotterill, author of the Dr Siri novels, won the Dagger in the Library at this year's Crime Writer's
Association awards.

GENESIS by Bernard Beckett was short listed for the Guardian Children's Fiction Award.

GATE  OF  AIR  by James Buchan was short listed for the Scottish Arts Council Sundial Award,  the  Ondaatje
Award and for a Saltire Award.

MANFRED THE BADDIE was short listed for the Royal Mail Book Awards and selected for the Booktrust Booked Up


                                          QUERCUS PUBLISHING PLC
                                       CONSOLIDATED PROFIT AND LOSS
                                        6 months to 30th June 2009

                                               6 months to         6 months to         Year to 31st
                                              30th June 2009        30th June         December 2008
                                                   GBP                 GBP                 GBP
TURNOVER                                           5,553,153          3,601,083            10,943,557
Cost of sales                                    (3,292,721)        (1,768,462)           (6,071,601)
GROSS PROFIT                                       2,260,432          1,832,621             4,871,956
Selling and distribution                           (930,816)          (919,256)           (1,405,329)
Administration expenses                          (1,434,538)        (1,401,860)           (3,437,713)
OPERATING PROFIT (LOSS)                            (104,922)          (488,495)                28,914
Interest receivable and similar income                 2,440              3,537                 4,887
Interest payable and similar charges               (159,767)          (109,086)             (314,484)
LOSS ON ORDINARY ACTIVITIES                        (262,249)          (594,044)             (280,683)
BEFORE TAXATION                                                                                      
Taxation                                                   -                  -                41,810
LOSS ON ORDINARY ACTIVITIES                                                                          
AFTER TAXATION AND RETAINED                        (262,249)          (594,044)             (238,873)
LOSS FOR THE YEAR                                                                                    
BASIC EARNINGS PER SHARE                              (1.49)             (5.16)                (1.95)
NB  no tax asset has been provided for the half-years                                                

                                          QUERCUS PUBLISHING PLC
                                        CONSOLIDATED BALANCE SHEET
                                           As at 30th June 2009
                                                   As at                As at               As at 
                                                 30th June            30th June          31st December 
                                                   2009                 2008                2008
                                                    GBP                  GBP                 GBP
FIXED ASSETS                                                                             
Tangible assets                                    117,614             168,143              159,237
CURRENT ASSETS                                                                                   
Stocks                                           3,697,284           2,694,518            3,776,355
Debtors                                          6,930,553           5,482,633            8,227,632
Cash at bank and in hand                           126,122             110,302              429,230
                                                10,753,959           8,287,453           12,433,217
CREDITORS: amounts                                                                               
falling due within one year                     (7,287,612)         (5,446,766)          (8,746,245)
NET CURRENT ASSETS                               3,466,347           2,840,687            3,686,972
TOTAL ASSETS LESS                                                                                
CURRENT LIABILITIES                              3,583,961           3,008,830            3,846,209
CREDITORS: amounts falling                                                                       
due after more than one year                       (14,097)         (1,344,701)             (14,097)
NET ASSETS                                       3,569,864           1,664,129            3,832,112
CAPITAL AND RESERVES                                                                             
Called up share capital                            140,493              92,129              140,493
Equity shares to be issued                          20,500              34,507               20,500
Share Premium account                            3,477,851           1,747,066            3,477,851
Profit and loss account                            (68,980)           (209,573)             193,268
SHAREHOLDERS' FUNDS -                                                                            
All Equity                                       3,569,864           1,664,129            3,832,112

This financial information has not been reviewed or audited by the Company's auditor.

The Directors of Quercus Publishing Plc accept responsibility for this announcement.

Enquiries to:

QUERCUS PUBLISHING PLC                                         Tel: 020 7291 7200
Mark Smith, Chief Executive
ST HELEN'S CAPITAL                                             Tel: 020 7628 5582
Mark Anwyl / Duncan Vasey

Notes to Editors:

*   Quercus Publishing plc is an independent publisher based in London. The Company was founded by Mark
    Smith and Wayne Davies in May 2004.
*   The Company was listed on PLUS market in October 2006

Contact Information

  • Quercus Publishing plc