Quercus Publishing plc
LSE : QUPP

August 07, 2008 02:00 ET

Interim Results for the six months ended 30 June 2008

                                                                                             07/08//2008
                                                                               GB00B1G17S00/GBP/PLUS-exn

                        QUERCUS PUBLISHING PLC ("QUERCUS" OR "THE COMPANY")
                                                 
                                          INTERIM RESULTS
                                                 
Quercus  Publishing  Plc  (PLUS: QUPP), the PLUS-quoted publishing company,  today  announces  its
interim results for the six months ended 30 June 2008.
                                                 
Summary of Information:

            *       Revenue for the half-year: GBP 3.60M (2007 comparison GBP 2.96M).
            *       PBT for the half year: Loss of GBP 0.59M (2007 comparison: Loss of GBP 0.34M).
            *       Group won the Lightning Source Independent Publisher of the Year at the British Book
                    Industry Awards 2008, in May 2008.

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


Mark Smith, Chief Executive of Quercus Publishing, commented:

"Sales  revenues for the first half have met the Director's expectations. To have our  first  half
revenue  exceed  2007,  which benefited from the substantial contribution of  the  Costa  winning,
Tenderness  of Wolves, is a testament to the development of the Company's publishing strategy  for
both fiction and non-fiction".

First Half Highlights:

In  May  2008, the Group won the Lightning Source Independent Publisher of the Year at the British
Book Industry Awards 2008.

In  April, LULLABIES FOR LITTLE CRIMINALS by Heather O'Neill entered the shortlist of the  Orange
Broadband Prize for Fiction 2008.

At  the  Crime Writer's Association Dagger Awards in July this year, Quercus earned the  following
five nominations:

    *       Duncan  Lawrie  Dagger (formerly the Gold Dagger) for THE CORONER'S  LUNCH  by  Colin
            Cotterill;
    *       International Dagger for THE GIRL WITH THE DRAGON TATTOO by Stieg Larsson;
    *       DIE WITH ME by Elena Forbes has been shortlisted for the John Creasey New Blood Dagger;
    *       Short Story Dagger for ONE DOLLAR JACKPOT by Michael Connelly from Dead Man's Hand
    *       and ONE TRUE LOVE by Laura Lippman from Best American Mystery Stories 2007.

Also  in July, THE TENDERNESS OF WOLVES, Stef Penney's debut novel, continued its huge success  by
winning The Theakston's Old Peculier Crime Novel of the Year Award 2008.  This multi-award winning
novel  has  sold  over  315,000 copies in the UK alone, and rights  have  been  sold  in  over  30
countries.


Anthony Cheetham, Chairman, commented

"Whilst the current economic climate requires the Group to maintain a cautious outlook, we believe
that  our  strategy, the organisational structure and the publishing programmes provide  a  strong
platform from which the Group can continue to grow."


                                           QUERCUS PUBLISHING PLC                                            
                                        CONSOLIDATED PROFIT AND LOSS
                                        6 months to 30th June 2008
                                                 
                                                  6 months to        6 months to         Year to 31st
                                                30th June 2008     30th June 2007       December 2007
                                                      GBP                GBP                  GBP

TURNOVER                                          3,601,083          2,959,603             8,626,192
                                                                                                     
Cost of sales                                    (1,768,462)        (1,617,757)           (4,687,471)
                                                                                                     
GROSS PROFIT                                      1,832,621          1,341,846             3,938,721
                                                                                                     
Selling and distribution                           (919,256)          (686,328)           (1,377,682)
Administration expenses                          (1,401,860)          (942,554)           (2,286,303)
                                                                                                     
OPERATING LOSS                                     (488,495)          (287,036)               274,736
                                                                                                     
Interest receivable and similar income                3,537              2,661                 5,962
Interest payable and similar charges               (109,086)           (56,112)             (126,598)
                                                                                                     
LOSS ON ORDINARY ACTIVITIES                        (594,044)          (340,487)               154,100
BEFORE TAXATION                                                                                      
                                                                                                     
Taxation                                                  0                  0               (41,920)
                                                                                                     
LOSS ON ORDINARY ACTIVITIES                                                                          
AFTER TAXATION AND RETAINED                        (594,044)          (340,487)               112,180
LOSS FOR THE YEAR                                                                                    
                                                                                                     
BASIC EARNINGS PER SHARE                              (5.16)             (3.07)                  1.01
NB  no tax asset has been provided for the half-years                                                


                                           QUERCUS PUBLISHING PLC                                            
                                        CONSOLIDATED BALANCE SHEET                                                 
                                           As at 30th June 2008
                                                
                                                           
                                                 As at               As at             As at 31st
                                            30th June 2008     30th June 2007        December 2007
                                                  GBP                 GBP                  GBP
FIXED ASSETS                                                                             
Tangible assets                                  168,143             158,516              181,005
                                                                                                 
CURRENT ASSETS                                                                                   
Stocks                                         2,694,518             782,489            2,007,386
Debtors                                        5,482,633           3,778,665            6,395,456
Cash at bank and in hand                         110,302              42,319              112,605
                                               8,287,453           4,603,473            8,515,447
CREDITORS: amounts                                                                               
falling due within one year                  (5,446,766)         (1,653,205)          (5,127,789)
                                                                                                 
NET CURRENT ASSETS                             2,840,687           2,950,268            3,387,658
                                                                                                 
TOTAL ASSETS LESS                                                                                
CURRENT LIABILITIES                            3,008,830           3,108,784            3,568,663
                                                                                                 
CREDITORS: amounts falling                                                                       
due after more than one year                 (1,344,701)         (1,369,220)          (1,357,144)
                                                                                                 
NET ASSETS                                     1,664,129           1,739,564            2,211,519
                                                                                                 
CAPITAL AND RESERVES                                                                             
Called up share capital                           92,129              89,300               89,494
Equity shares to be issued                        34,507              34,760               34,507
Share Premium account                          1,747,066           1,709,336            1,703,047
Profit and loss account                        (209,573)            (93,831)              384,471
                                                                                                 
                                                              
SHAREHOLDERS' FUNDS -                                                                            
All Equity                                     1,664,129           1,739,564            2,211,519
                                                 


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

Enquiries to:

QUERCUS PUBLISHING PLC                                         Tel: 020 7291 7200
Mark Smith, Chief Executive

REDLEAF COMMUNICATIONS                                         Tel: 020 7822 0200
Sanna Sumner/Clair Sharp

ST HELEN'S CAPITAL PLC                                         Tel: 020 7628 5582
Barry Hocken / 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