18th Oct 2013 08:50
LONDON (Alliance News) - Haynes Publishing Group PLC Friday said fiscal first-quarter revenues were up 12% on the year, but profits will be hit by a GBP1.3 million cost of restructuring its UK operations.
The manual publisher said it expects the restructuring to produce cost savings in its UK business of around GBP500,000 in 2014/2015, rising to GBP700,000 in 2015/2016.
Haynes produces and sells automotive and motorcycle repair manuals, but is increasingly moving online. Revenues from the company's digital ranges were up 18% in the 13 weeks to August 31.
Regionally, North American and Australian revenues were up 16%, while UK and Europe revenues were up 3% as an 8% increases in European sales offset a 6% decline in the UK.
In September, Haynes said it would transfer its UK distribution operation to a third-party logistics provider and amalgamate its UK automotive and general book editorial functions.
The company then bought Clymer and Interec Manuals of the US for GBP5.9 million in September, which it expects to be earnings enhancing and release significant efficiencies in the costs of printing, warehousing, distribution and editorial. Haynes said that the integration of this acquisition was progressing as planned.
Shares in Haynes were trading up 1% at 197.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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