The Quarto Group reduce debt by $10m

Today at Quarto Group PLC LON:QRT Annual Meeting, starting at 11am this trading update will be read out:

“Revenue for the quarter to 31 March 2016 was $33.3m (quarter to 31 March 2015: $28.4m). Historically, Q1 is the Company’s quietest trading quarter but there has been good momentum from Q4 2015 into this period. As outlined in the Final Results in March, revenue will continue to be more H2 weighted than prior years in 2016.

Financial position

The Group’s net debt on 31 March 2016 was $67.6m (31 March 2015: $77.6m).

Outlook

On the basis of current levels of trading, the Group is on track to meet management expectations for the year end and deliver both debt reduction and organic growth.

VAT on adult colouring books

The Group notes recent press coverage on the VAT status of adult colouring books. Quarto has not been contacted by HMRC on this matter. The Group sought guidance from HMRC in 2015 on the treatment of adult colouring books for VAT and has been charging the standard 20% VAT rate across all adult colouring books in the UK since then.”

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