30th Jan 2014 10:36
LONDON (Alliance News) - Haynes Publishing Group PLC said Thursday revenue rose in the half year ended November 30, 2013, but pretax profit was hit by restructuring and acquisition costs.
The company, which produces and sells automotive and motorcycle repair manuals, posted revenue of GBP14.9 million in the half, up from GBP13.3 million in the previous year.
Haynes saw a pretax profit of GBP128,000, down from GBP941,000 in the previous year, hit by GBP1.3 million in restructuring costs and GBP200,000 for the acquisition of Clymer and Interec Manuals. On an adjusted basis, excluding these costs, pretax profit was GBP1.6 million, up 78% from GBP941,000.
Improved sales in the US helped to offset the increased costs, as well as growth in its European digital operations.
Haynes maintained its interim dividend at 3.5 pence per share.
Haynes said that it had been encouraged by current trading patterns in its North American & Australian and UK & European markets, but said that trading conditions in these markets remained challenging.
In the UK the company said it will continue focusing on its restructuring programme. Haynes is shifting its focus towards higher margin titles in order to improve profitability. However it cautioned that this restructuring would hurt revenue and reported profit in the year.
Haynes said it outsourcing its UK distribution operation to Grantham Book Services, part of the Random House Group, which it said will allow it to avoid investing significantly in new distribution systems. This also will allow the company to relocate its UK operation to a smaller premises, which will lead to cost savings going forward.
The company said it will continue to use its strong financial position to pursue further acquisitions. Haynes acquired Clymer for USD9.3 million in September 2013.
Shares in Haynes were trading up 0.5% at 221.10 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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