Quercus Publishing plc
LSE : QUPP

December 16, 2008 09:52 ET

Trading Statement

                                                                                        16/12/2008     
                                                                         GB00B1G17S00/GBP/PLUS-exn
                                                 
                                      QUERCUS PUBLISHING PLC
                                                 
                                         Trading Statement

Quercus Publishing plc (PLUS: QUPP), the trade and contract publisher, today announces that as a
result of exceptionally challenging recent market conditions, the Company expects its profits for
the year ending 31st December 2008 to be below market expectations.

The Board estimates that the unexpected decline in revenue from the Trade Publishing division will
reduce expected sales for this division to between £6.0 million and £6.5 million.

The Contract Publishing division continues to perform in line with the Company's expectations and
is expected to generate sales of between £4.0 million and £4.3 million for the year.

The Company should therefore achieve total revenue of approximately £10.5 million for 2008, a
significant increase on the 2007 revenue of £8.7 million.

The Board currently expect that the net impact of the reduction in anticipated revenue will be to
reduce profit for the Group to breakeven.

In the light of the ongoing trading challenges, a significant program of cost-cutting has been
implemented by the Company, including a reduction in current staff costs and a review of the
Company's future staffing requirements. Costs across the business remain under tight control and
further significant cost reductions and cash conservation measures will take place during December
and into 2009, whilst still delivering a full publishing program for 2009 and 2010.

The Board believes that the proceeds of the recent fund raising and the continuing support that
the Company is receiving from its bankers mean that the Company is well placed to withstand the
economic downturn. Despite the difficult trading conditions, the Board remains confident of the
longer term prospects for the Company.

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 7566 6700
 Sanna Sumner
 ST HELEN'S CAPITAL PLC                                        Tel: 020 7628 5582
 Barry Hocken / Duncan Vasey

Contact Information

  • Quercus Publishing plc