17th Oct 2014 06:55
LONDON (Alliance News) - Haynes Publishing PLC Friday said its first quarter revenue dropped around a fifth year-on-year as it suffered from tighter inventory controls being put in place by its customers and said its international arms have taken big hits from the strength of sterling.
The company, which publishes practical manuals and books, said key customers in all of its markets have implemented working capital management programmes in the first quarter, resulting in tighter inventory controls.
Due to these changes, it said overall group revenue in the first quarter to August 31 dropped 18%, with like-for-like revenue falling 19%.
Its North American and Australian operations saw a 9% fall in revenue in the quarter in local currency, which becomes a fall of 18% in pound terms due to the strength of sterling.
UK & Europe revenue dropped 19% due to the inventory tightening by key customers, with UK revenue falling 35%. It saw a bright spot in trading for its professional ranges in Europe in the period, up 11% in local currency, though up only 2% when translated into sterling.
It also said like-for-like sales of non-automotive titles in publication for more than 12 months rose 2% following moves by its management to refocus towards higher-margin titles.
By Sam Unsted; [email protected]; @SamUAtAlliance
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