Publisher Quarto holds bid talks after revenues slump

The publisher of illustrated books such as The Sex Bible for People over 50 and Cooking with Cannabis has revealed it is in talks about a takeover amid a slide in revenues.

Quarto, which was founded in London in 1976, said it had received an approach from an unnamed bidder “at a price the board considers to be attractive and reflective of the inherent value of the business”.

The company said discussions were “worthy of due consideration” but still at an early stage.

Because it is incorporated in Delaware and not bound by UK takeover rules, Quarto was not obliged to disclose the identity of the interested party.

Its largest shareholder, at 15%, remains founder Laurence Orbach — who was ousted as chief executive in 2012 after a bust-up with an activist investor.

News of the bid interest caused the shares to surge 30.5p, or about 22%, to 170p today. They have lost nearly half their value this year.

The bid came as the company revealed a disappointing performance in the first half of the year, with publishing weaker than expected.

Revenues fell by 13% to $50.2 million (£38.5 million), pushing the company to a greater pre-tax loss of $9.2 million and forcing it to scrap the dividend.

Chief executive Marcus Leaver said he expects the “soft retail environment” to continue.