Quarto has reported a strong performance in its core publishing businesses which means that FY2015 results will exceed management expectations. The group has benefitted from its market-leading presence in the adult colouring book category, especially in the US. Net debt has declined to $59.7m. We have raised our FY2015E PBT forecast by $0.1m to $13.7m, EPS of 49.3c and a full year dividend of 8.4p. The shares are undervalued on a PER of 6.0x and dividend yield of 4.0%. We reiterate our buy re
