HYNS.L Regulatory News (HYNS)

The following amendment has been made to the 'Final Results' announcement released on 25 September 2014 at 07.00 under RNS No 5403S.

The board has been informed that as of the 9 October 2014, ex-dividend dates will be moving to the day before the record date therefore, the ex-dividend date in the announcement released this morning should have been 23 October and not 22 October as stipulated.

All other details remain unchanged.

The full amended text is shown below.

HAYNES PUBLISHING GROUP P.L.C.

RESULTS FOR THE YEAR ENDED

31 May 2014

Haynes Publishing Group P.L.C. ("the Group") is the worldwide market leader in the production and sale of automotive and motorcycle repair manuals. Every Haynes manual is based on a complete vehicle strip-down and rebuild in our workshops, so that the instructions and photographs are inherently practical, accurate and easy to follow.

Through HaynesPro the Group is a leading European supplier of digital technical information to the professional motor trade.

The Group also publishes an extensive range of practical and DIY titles covering a wide variety of subjects, as well as a range of light entertainment manuals styled on the iconic Haynes Manual. Its customers are primarily made up of both professionals and DIY mechanics and enthusiasts.

Group financial highlights

- Despite a challenging year, revenue, adjusted EBITDA1 and adjusted basic EPS1 were ahead of market expectations

- Revenue up 6% at £29.3 million (2013: £27.6 million), includes £1.5 million of revenue from the Clymer and Intertec acquisition

- Adjusted EBITDA1 of £8.1 million, up 27% (2013: £6.4 million2)

- Adjusted operating profit1 of £4.8 million, up 33% (2013: £3.6 million2)

- Adjusted profit before tax1 in line with market expectations at £4.2 million, up 31% (2013: £3.2 million2)

- Adjusted basic earnings per share1 of 18.7 pence (2013: 14.2 pence2), up 32%

- Final dividend declared of 4.0 pence per share, giving a total dividend of 7.5 pence per share (2013: 7.5 pence)

- Revenue from the Group's digital product ranges up 17% at £6.1 million (2013: £5.2 million)

- Local currency North American & Australian revenue up 17% at $25.8 million (2013: $22.0 million)

- Exceptional costs of £2.2 million incurred on restructuring of the UK business and the Group's acquisition activity during the year (2013: £nil)

- Special contribution of £0.5 million to UK pension scheme in November 2013

- Following the acquisition of Clymer & Intertec manuals, the restructuring of the UK business and the special UK pension contribution the Group had net debt of £1.1 million (2013: net funds3 of £6.1 million) giving Group gearing of 3% (1.2 million shares still held in treasury)

Business highlights

- Successful completion of UK restructuring programme including consolidation of UK editorial departments and outsourcing of UK distribution to established provider

- UK focus on most profitable higher margin Haynes manual style titles

- Acquisition of Clymer and Intertec manuals in the US for £5.9 million ($9.3 million) cementing Group's position as global market leader for publication and sale of motorcycle service and repair manuals

- Major re-merchandising programmes with key US customers, giving display space in over 15,000 US retail outlets and enhanced sales opportunities

- Development of new Touch interface for Group's professional product range using Workshop ConnectTM feature for easier access on smartphones and tablets

Notes to the financial highlights :

1 Adjusted to exclude £2.2 million of exceptional items (UK restructuring costs of £1.9 million and acquisition costs of £0.3 million). Reported operating profit and profit before tax were £2.6 million (2013: £3.6 million) and £2.0 million (2013: £3.2 million) respectively. Reported earnings per share were 7.4 pence (2013: 14.2 pence). EBITDA including exceptional items was £5.9 million (2013: £6.4 million).

2 The 2013 figures have been restated to reflect the IAS 19 adjustment to pension costs (refer to note 1 Restatement of prior years).

3 Net funds defined as cash at bank net of bank overdrafts.

Enquiries :

Haynes Publishing Group P.L.C. +44 1963 442009

J HC Haynes, Group Chairman

Eric Oakley, Group Chief Executive

Investor Contact: Charles Stanley Securities +44 20 7149 6000

Dugald J Carlean

Karri Vuori

Media Contact: New Century Media +44 20 7930 8033

Nicola Krafft

Cautionary Statement :

This report contains certain forward-looking statements with regard to the financial condition and results of the operations of Haynes Publishing Group P.L.C. These statements and forecasts involve risk factors which are associated with, but are not exclusive to, the economic and business circumstances occurring from time to time in the countries and sectors in which the Group operates. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Haynes Publishing Group P.L.C., has no obligation to update the forward-looking statements or to correct any inaccuracies therein.

Chairman's Statement

During our 2013/14 financial year we have taken significant steps forward with our plans to refocus the Haynes Group and return to delivering sustainable revenue and profit growth.

In September 2013, the acquisition of the Clymer and Intertec manuals business cemented our position as the global market leader of motorcycle service and repair manuals. In the same month, we announced the restructuring of the UK business, a programme which was completed during the year. In November 2013, we made a special one-off contribution to the UK pension scheme of £0.5 million that will help to accelerate the pay down of the UK past service deficit. In January 2014, the US business implemented major re-merchandising programmes with key customers, which has significantly improved the in-store display of our manuals. In February 2014, our Netherlands' based staff relocated to larger offices in Leusden, near Utrecht, consolidating them into one location with the associated work flow benefits this provides.

These positive changes were implemented with minimal impact on underlying trading and I am pleased to report that over the last twelve months Group revenue grew by 6% and adjusted pre-tax profits were up 31% at £4.2 million. It is particularly encouraging that digital sales increased by 17% year-on-year to £6.1 million. During the year the Group has incurred one-off costs of £2.2 million associated with the UK restructuring and the Group's acquisition activity. After deducting these exceptional costs the reported profit ended the year at £2.0 million (2013: £3.2 million). Adjusted earnings per share were up 32% at 18.7 pence.

Following the payment of the interim dividend of 3.5 pence in April 2014, the Board is recommending a final dividend for the year of 4.0 pence which, together with the interim dividend, maintains the total dividend for the year at 7.5 pence (2013: 7.5 pence). Subject to approval by shareholders the final dividend will be paid on 13 November 2014 to shareholders on the register at the close of business on 24 October 2014. The shares will be declared ex-dividend on 23 October 2014.

The Group couldn't have achieved the success it has over the past year without the dedication and positive approach of our staff. On behalf of the Board I would like to thank all our employees for their hard work and support over the past twelve months.

Although trading in the consumer market remains challenging the Board believes the recent refocusing of the business will create long-term organic growth opportunities. Haynes is a global business and senior management are actively evaluating further geographical expansion options for our consumer and professional products, including through acquisitions.

Since its inception, Haynes Publishing's core business has been the creation of useful practical information, initially for DIY consumers and more recently also for professional mechanics. The positive steps the Group has taken over the last year demonstrates our focus is firmly on creating content for both our consumer and professional end users. We remain committed to the creation of our iconic manuals, and will evaluate the commercial opportunity to deliver our unique content through platform agnostic digital channels. We will also continue to invest in HaynesPro to ensure our digital content offering to professional mechanics remains world class.

J HC Haynes

Group Chairman

24 September 2014

The Haynes business model

The Haynes Group comprises two geographical business segments :

· UK & Europe

· North America & Australia

The UK & European business has headquarters in Somerset, England and subsidiaries in the Netherlands, Italy, Spain, Romania and Sweden. The core business of the UK and European operations is the supply of digital automotive repair and technical information to the professional automotive markets in twenty three different languages as well as to the DIY aftermarkets in both a printed and digital format. There are currently in excess of 40,000 subscribers to the HaynesPro professional data throughout Europe and over 600 automotive printed titles in publication. The business also publishes approximately 300 titles which are practical, instructional, easy to read and aimed at those with an interest in more general DIY related activities.

The North American & Australian business has headquarters near Los Angeles, California and publishes DIY repair manuals for cars and motorcycles in both a printed and digital format. The US business publishes titles under the Haynes, Chilton, Clymer and Intertec brands and in both the English and Spanish languages. It has a branch operation in Sydney, Australia which publishes similar products under both the Haynes and Gregory brands. The Australian business also publishes information for the professional automotive market. The North American and Australian business currently publishes in excess of 1,300 titles. Through its print facility in Nashville, Tennessee, the North American business is the central print facility for the Group's print products.

The success of the Haynes business is underpinned by an attention to detail and a passionate dedication to providing independent and trustworthy instructional advice. This simple but important philosophy lies at the heart of what we do. The fact that all Haynes Manuals are based on a complete vehicle strip-down and rebuild in one of our workshops, so that the written and photographic instructions for our customers are inherently practical and easy to follow, can sometimes come as a surprise to those new to the Group but for those accustomed to Haynes, this renowned attention to detail will be a familiar concept. With over 50 years of experience in this market sector, we have deeply embedded processes, inbuilt expertise and procedure driven efficiencies which help to give Haynes its unique identity.

For our professional product ranges the data collection process is slightly different but the uncompromising Haynes approach to detail remains unchanged. The technical and maintenance data produced by HaynesPro is of necessity based on the Original Equipment Manufacturers (OEM's) information and servicing schedules. Under European regulations independent garages are legally entitled to carry out normal maintenance and repairs during a vehicle's warranty period, without invalidating the warranty conditions, provided such work is carried out in accordance with the OEM's servicing schedules. It is therefore essential that the same level of detail also applies to our range of professional products to ensure the technical data is clear, concise, accurate and conforming to the relevant OEM's instructions.

Operational and financial review

Operational overview

This time last year we set ourselves some challenging goals for the year ahead. I believe that over the past twelve months we have made considerable progress in achieving these and put in place some important building blocks which will help to drive future revenue and profit growth for the Group.

In the UK and Europe, the re-focus of the UK's general publishing programme onto the Haynes manual style non-automotive titles, the outsourcing of the UK warehousing and distribution operation and the consolidation of the automotive and non-automotive UK editorial departments was successfully completed during the year. We have also reviewed and rationalised our global automotive editorial teams to improve workflow of projects and to optimise Group resources.

In the second half of the year we completed the development of a new Touch interface for our professional product range and have merged our WorkshopData ATI™ and TruckData ATI™ modules into a single database. The consolidation of the two modules will allow easier integration with other online applications such as distributor parts catalogues and will help accelerate the introduction of new topics for both our car and truck customers.

In the US, the Clymer motorcycle business which had been a long standing acquisition target for the Group, is now under the Haynes umbrella and perfectly complements our existing Haynes motorcycle business. Not only will the editorial, print production, distribution and sales synergies which flow from this acquisition be revenue and profit enhancing for the Group going forward but the acquisition has also opened up new markets for the Group including inboard and outboard marine engines and farm equipment. Also during the year, after a great deal of negotiation with key customers in the US, we were able to install new display racking into over 5,000 retail stores which has significantly improved the in-store display of our manuals and allowed 21 previously unlisted titles to be included in these retail outlets which should be revenue enhancing for the business going forward.

In many ways this has been a challenging year for the Group. In the UK, the overall headcount has been reduced by approximately one third following the restructuring, with a high proportion of those leaving the Company having served with the business for many years. In the US, the acquisition of Clymer presented its own challenges, with over 0.5 million units of inventory being relocated to our warehouse in Tennessee with shipping and invoicing beginning within 3 weeks of completion. Yet with the hard work and dedication of our staff and management teams we have been able to work our way through these challenges and move forward as a Group.

Overall Group revenue ended the year up 6% at £29.3 million (2013: £27.6 million). In North America and Australia revenue was 14% ahead of last year including the Clymer and Intertec acquisition (up 3% like-for-like) while in the UK revenue ended the year down 13% but another strong year of sales from our professional products range, up 16% for the year, left overall UK and European revenue down 2% on the prior year.

Revenue from the Group's digital product ranges was up 17% at £6.1 million (2013: £5.2 million).

The Group's adjusted gross profit (adjusted to add back £1.5 million of exceptional costs) was up 3% against the prior year but with higher like-for-like development cost amortisation on the Group's professional product range of £0.5 million and the higher cost of inventory on the Clymer revenue, following the fair value treatment under International Accounting Standards, the overall adjusted gross margin percentage was down 1.5 percentage points at 58.1% (2013: 59.6%).

The higher revenue from our North American and Australian operations and strong sales from our professional products range were the major contributing factors to an increase in adjusted Group operating profit, which ended the year up 33% at £4.8 million (2013 restated: £3.6 million).

During the year the Group incurred exceptional items of £2.2 million (2013: £nil) from the restructuring of the UK business and the Group's acquisition activities. The UK restructuring costs of £1.9 million primarily relate to editorial origination, author royalty and inventory write-downs on the discontinued general publishing titles, employee costs and professional fees. The acquisition fees of £0.3 million relate to the costs associated with the successful acquisition of the Clymer and Intertec manuals business in September 2013 as well as one-off costs relating to the Group's other acquisition investigations and due diligence work. Given the significance of the costs and their non-recurring nature and to avoid distorting the underlying performance of the Group, these costs have been shown separately in the Consolidated Income Statement.

Excluding the impact of the exceptional items, Group overheads ended the year 5% lower at £12.3 million (2013: £12.9 million) with UK overheads down £0.5 million on the prior year.

This is the first full year for the Group reporting under IAS 19 Employee Benefits (Revised). The new Standard restricts the rate used to calculate the return on a defined benefit pension scheme's assets to its discount rate, rather than using a rate of return which is more appropriate to the various classes of asset. In addition, the costs of administering our pension schemes are now charged against operating profit in the Income Statement. In line with the new reporting requirements, the prior periods have been restated to present the figures as if the change had occurred at the beginning of the reporting period. The impact of the change has been to increase Administrative expenses in the prior year by £0.1 million and other finance costs by £0.3 million.

Finance costs were higher by £0.1 million reflecting the interest on the bank borrowings to fund the Clymer acquisition in September 2013 while other finance costs which relate to the interest charge on the pension schemes' liabilities net of the expected return on the pension schemes' assets ended the year in line with the prior period at £0.5 million (2013 restated: £0.5 million).

Pre-tax profit before exceptional costs ended the year up 31% at £4.2 million (2013 restated: £3.2 million). The Group's adjusted tax charge for the year of £1.4 million (2013 restated: £1.0 million) gives an effective tax rate of 32.7% on adjusted profit before tax (2013 restated: 32.5%). The effective rate of tax for the Group is a mixed rate which reflects the eight countries where the Group pays tax and also the mix of profits within those tax jurisdictions. The increase in the effective rate during the year reflects the higher mix of profits generated by the Group's US operations. Adjusted EPS was 18.7 pence (2013 restated: 14.2 pence).

North America and Australia segmental review

Overall segmental revenue from the North American and Australian operations ended the year 17% up at $25.8 million (2013: $22.0 million). Following negotiations with key customers in the US, we were able to install new display racking into over 5,000 retail stores, the majority of which happened in January 2014. As a result of these re-merchandising programmes, the US business has been able to include 21 previously unlisted titles in these retail outlets and also add 5 new Spanish language manuals into a large number of Hispanic outlets. The Haynes business now has display space in over 15,000 retail locations in the US.

At the half year, we reported strong like-for-like sales up 12% against the prior year but following the returns from the key customer re-merchandising programme during the second half of the year, like-for-like sales ended the year up 6%. Sales of Haynes branded manuals ended the year 4% ahead of the prior period. In Australia, revenue was 6% ahead of the prior year, while revenue from the Chilton branded manuals had a difficult year down 10%, as key Chilton manual retailers tightened controls over inventory. Whilst not large in the context of the North American and Australian overall sales, year-on-year revenue from the sale of US and Australian digital manuals increased by 13%. The integration of the Clymer and Intertec manuals business has performed to plan with revenue in line with management expectations, adding $2.5 million to revenue since the acquisition in September 2013.

Over the past six months, Sterling has strengthened against the US Dollar leading to an average exchange rate for the year up 3% at $1.62 (2013: $1.57), lowering reportable US revenue by £0.5 million. After translation to Sterling, reportable segmental revenue for the North American and Australian business was £15.9 million, up 14% against the prior year (2013: £14.0 million).

The impact of the higher North American and Australian revenue coupled with the editorial origination amortisation, which is fixed and does not increase as revenue grows led to segmental operating profit before exceptional items and interest ending the year up 56% at $4.2 million (2013: $2.7 million) which after translation to Sterling was up 53% at £2.6 million (2013: £1.7 million).

UK and Europe segmental review

At the half year we reported revenue from the Group's UK and European operations was 5% ahead of the prior period with revenue from our European businesses up 16% and revenue from our UK operation down 4%. During the second half of the year sales of our professional products in Europe continued to perform well ending the year up 14%. In the UK, a combination of weaker third quarter trading and a reduced but more focussed non-automotive publishing programme left revenue for the year down 13%. On a like-for-like basis, excluding the sales of the discontinued general publishing titles, the shortfall was 7%. Overall UK and European segmental revenue ended the year down 2% at £13.4 million (2013: £13.7 million).

During the second half of the year, the outsourcing of the UK warehousing, distribution, invoicing, customer services and cash collection to Grantham Book Services was successfully completed with close to 1.0 million units of inventory physically moved between sites during the handover period. In Europe, HaynesPro completed the development of a new Touch interface which has been specifically designed for use on tablets and smartphones. The new interface utilises the Workshop ConnectTM feature, which links the information to a user's account in the cloud, making it accessible from any device. HaynesPro also merged their WorkshopData ATI™ and TruckData ATI™ modules into one single database which will provide significant end user benefits going forward.

The impact of the lower UK sales and a like-for-like increase in development cost amortisation in relation to our professional range of products of £0.5 million left the UK and European segmental operating profit before exceptional items and interest in line with the prior year at £0.9 million (2013: £0.9 million).

Balance sheet and cash flow

Following the acquisition of Clymer and Intertec manuals during the year, the Group's intangible assets increased by £2.9 million. As at 31 May 2014 the Group had net debt of £1.1 million (2013: Net funds of £6.1 million). The major factors contributing to the reduction in the Group's net funds/debt position were the acquisition of the Clymer and Intertec Manuals business in September 2013 at a cost of £5.9 million ($9.3 million) with £3.4 million funded through internal cash and £2.5 million through a drawdown on the US banking facility, the cash impact of the UK restructuring programme, where approximately 57% of the £1.9 million exceptional restructuring costs were non cash write-downs, and the additional contribution to the UK pension scheme in November 2013 of £0.5 million.

At 31 May 2014 the net deficit on the Group's two defined benefit retirement schemes, as reported in accordance with IAS 19, was £11.2 million (2013: £12.1 million). The combined total assets of the schemes increased to £29.6 million (2013: £28.5 million) and the total liabilities increased to £40.9 million (2013: £40.6 million).

The net cash generated from operations before tax for the year was lower at £5.0 million (2013: £6.9 million) which represented 104% of adjusted Group operating profit (2013: 190%) and reflects the cash impact of the exceptional costs during the year of £1.1 million, a special one-off contribution to the UK Scheme of £0.5 million and higher funding of the US pension scheme due to timing of £0.4 million. The higher spend on the Group's investing activities reflects the consideration paid for the Clymer acquisition of £5.9 million while the cash net inflow on the Group's financing activities of £1.0 million (2013: cash outflow of £2.0 million) results from the associated increased bank borrowing to part fund the Clymer acquisition of £2.2 million and a reduction in dividend paid during the year of £0.8 million. As a result, cash and cash equivalents ended the year at £1.1 million (2013: £6.1 million).

Outlook and future developments

Trading in the early months of the 2014/15 financial year for the Group's consumer products has been soft, with a noticeable trend of inventory reduction by key automotive retailers in our main geographical markets. This is a realignment which we are addressing and do not expect to have a material long term impact on the business. Sales of our professional product ranges in Europe continue to perform ahead of the prior year.

Over the next twelve months the Group will continue to move forward with its plans to deliver new digital platforms which will allow for greater interaction with its global end users. We continue to research new areas for geographic expansion of our professional product ranges. Over the past eighteen months we have been reviewing opportunities for expansion into the South American market, with our research showing that it is not likely to be a commercially viable market for the Group in the short to medium term. The Group will therefore continue to explore alternative markets outside of Europe which may offer us greater expansion prospects over a shorter timeframe. We have commenced research into identifying potential products for North America.

We will continue to invest in new product initiatives and expand the breadth and profile of our core vehicle titles to ensure that both our automotive and non-automotive customers have the full range of relevant and trustworthy technical and instructional information they need. Our print products remain an important part of our business and whilst we are investing heavily in new digital platforms and new product initiatives we also continue our significant investment in new content for our consumer products. In the coming year we are planning to invest close to £3.0 million in updating and expanding our professional range of products and over £2.5 million on our consumer product ranges.

Eric Oakley

Group Chief Executive

24 September 2014

Consolidated Income Statement

1 See Note 1 Restatement of prior years

Consolidated Statement of Comprehensive Income

1 See Note 1 Restatement of prior years

Consolidated Balance Sheet

Consolidated Statement of Changes in Equity

1 See Note 1 Restatement of prior years

Consolidated Cash Flow Statement

1 See Note 1 Restatement of prior years

Notes to the Results Announcement

1. Accounting policies

Basis of preparation

Haynes Publishing Group P.L.C. (the "Company") is a company domiciled in the United Kingdom. The consolidated financial statements of the Company for the year ended 31 May 2014 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and the Companies Act 2006 applicable to companies reporting under IFRS. The Group financial statements have been prepared on the historical cost basis except for the treatment of certain financial instruments and are presented in sterling, with all values rounded to the nearest thousand pounds (£'000) except as indicated otherwise.

The financial information contained in this report does not constitute the Company's statutory accounts for the year ended 31 May 2014 or for the year ended 31 May 2013. Statutory accounts for the years ended 31 May 2014 and 31 May 2013 have been reported on by the Independent Auditors and the Independent Auditors' Report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The statutory accounts for the year ended 31 May 2013 have been filed with the Registrar of Companies and the statutory accounts for the year ended 31 May 2014 will be filed with the Registrar of Companies following the AGM on 5 November 2014.

The Annual Report 2014 was approved by the Board of Directors and authorised for issue on 24 September 2014 and signed on its behalf by J Haynes and E Oakley.

Basis of accounting

The accounting policies used to prepare this results announcement are consistent with those applied in the 2013 consolidated financial statements, apart from the following new standards and amendments to standards which became effective for the first time during the year :

· IFRS 7 (amendment): 'Financial Instruments: Disclosures', has been introduced to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company's financial position.

· IFRS 13: 'Fair Value Measurement', establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 provides guidance on how to measure fair value under IFRS when it is required or permitted

· IAS 19 (revised): 'Employee Benefits', requires a schemes' discount rate to calculate the return on assets rather than using a rate of return appropriate to the various asset classes. The amended Standard also requires administration costs to be recognised separately from the current service cost in the income statement as they are incurred.

In addition to the above, amendments resulting from the Annual Improvements 2009-2011 Cycle was issued in May 2012 with an effective date for periods commencing 1 January 2013. This was a collection of amendments to five standards including; IFRS 1 'First-time adoption of International Financial Reporting Standards', IAS 1 'Presentation of Financial Statements', IAS 16 'Property, Plant and Equipment', IAS 32 'Financial Instruments: Presentation' and IAS 34 'Interim Financial Reporting'.

With the exception of IAS 19 (revised) and IAS 1 (amendment), the above new standards and amendments to standards were either not relevant or did not have a material impact on the Financial Statements of the Group.

IAS 19 (revised) 'Employee Benefits' has been adopted in the year and comparatives for the year ended 31 May 2013 have been restated accordingly, further details are provided in this note under the heading 'Restatement of prior years'. IAS 1 (amendment) has been adopted and the presentation of the Consolidated Statement of Comprehensive Income updated accordingly.

Issued standards, amendments to standards and interpretations which become applicable for the Group after the year-end will be adopted in accordance with their effective dates. The directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the financial statements of the Group in the period of initial application.

1. Accounting policies (continued)

Restatement of prior years

As reported in our Annual Report 2013, the amendments to IAS 19 Employee Benefits (revised) impact the Group for the first time in the current financial year. The main impact on the Group has been to restrict the rate used to calculate the return on the Group's defined benefit pension schemes' assets to the schemes' discount rate, rather than using a rate of return which is more appropriate to the various classes of asset.

The Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity and affected Notes have been restated for the period ending 31 May 2013. The impact of the restatement on the 31 May 2013 figures are as shown below:

· To increase administrative expenses in the Consolidated Income Statement by £124,000.

· To reduce other finance costs in the Consolidated Income Statement by £306,000.

· To reduce the amount of taxation in the Consolidated Income Statement by £99,000.

The above restatements have been reflected in the Consolidated Statement of Comprehensive Income and there was no impact on the disclosed defined benefit obligation at 31 May 2013.

A Consolidated Balance Sheet as at the beginning of the earliest comparative period presented would ordinarily be required by IAS 1, 'Presentation of financial statements', for a restatement. However, given that details of the restatement have been fully disclosed and the restatement had no impact on the Consolidated Balance Sheet as at 1 June 2012, the Directors do not believe that the inclusion of an additional consolidated balance sheet as at 31 May 2012 would provide any additional useful information. Accordingly, no third consolidated balance sheet has been presented in these financial statements.

During the year the Group reviewed the way it reports the costs of maintaining its UK site. Previously the costs were apportioned between cost of sales and administration expenses however, this year all costs have been reported as administration expenses. Accordingly, in the prior year figures £327,000 has been reclassified from cost of sales to administration expenses.

Foreign exchange rates

The foreign exchange rates used in the financial statements to consolidate the overseas subsidiaries are as follows (local currency equivalent to £1):

2. Revenue

3. Segmental analysis

For management and internal reporting purposes, the Group is organised into two geographical operating segments:

- UK and Europe

- North America and Australia

The UK and European business with headquarters in Sparkford, Somerset has subsidiaries in the Netherlands, Italy, Spain, Romania and Sweden. Its core business is the publication and supply of automotive repair and technical information to the DIY and professional automotive aftermarkets in both a printed and digital format.

The North American and Australian business with headquarters near Los Angeles, California publishes DIY repair manuals for cars and motorcycles in both a printed and digital format. The business publishes titles under the Haynes, Chilton and Clymer brands, in both the English and Spanish languages. It also has a branch operation in Sydney, Australia which publishes similar products under both the Haynes and Gregory's brands.

The above two operating segments are each organised and managed separately and are treated as distinct operating and reportable segments in line with the provisions of IFRS 8. The identification of the two operating segments is based on the reports reviewed by the chief operating decision maker, which form the basis for operational decision making.

Analysis of geographic operating segments

[1] Inter-segment sales are charged at the prevailing market rates.

[2] In the segmental reporting freehold buildings are depreciated over 40 years - under IAS 16 the residual value of buildings reflect the expected value at the end of their useful life resulting in an adjustment to depreciation.

[3] In the segmental reporting, pension contributions are expensed and the assets and liabilities of a defined benefit pension scheme are held separately from the Group - under IAS 19 the Income Statement and Statement of Comprehensive Income are adjusted to reflect the annual current service cost and actuarial gains and losses arising on a defined benefit pension scheme and the net surplus/(deficit) on the scheme is included in the balance sheet.

[4] In the segmental reporting goodwill is amortised over a period not exceeding 20 years - under IFRS 3 goodwill is reviewed annually for impairment but not amortised.

[5] The charge to taxation relates to the consolidated Group. Included within the charge to taxation is a credit of £330,000 which relates to the UK & European operations and £804,000 which relates to the North American & Australian operations.

[6] Details of the exceptional items are shown in note 4 of this Results Announcement. The UK & European segmental exceptional costs include an additional £500,000 which is removed from the Consolidated Income Statement through the IAS 19 adjustments referred to in sub note 3 above.

3. Segmental analysis (continued)

* See Note 1 Restatement of prior years

[1] Inter-segment sales are charged at the prevailing market rates.

[2] In the segmental reporting freehold buildings are depreciated over 40 years - under IAS 16 the residual value of buildings reflect the expected value at the end of their useful life resulting in an adjustment to depreciation.

[3] In the segmental reporting, pension contributions are expensed and the assets and liabilities of a defined benefit pension scheme are held separately from the Group - under IAS 19 the Income Statement and Statement of Comprehensive Income are adjusted to reflect the annual current service cost and actuarial gains and losses arising on a defined benefit pension scheme and the net surplus/(deficit) on the scheme is included in the balance sheet.

[4] In the segmental reporting goodwill is amortised over a period not exceeding 20 years - under IFRS 3 goodwill is reviewed annually for impairment but not amortised.

[5] The charge to taxation relates to the consolidated Group. Included within the charge to taxation is £106,000 which relates to the UK & European operations and £780,000 which relates to the North American & Australian operations.

4. Exceptional items

The acquisition expenses relate to the successful acquisition of the Clymer and Intertec manuals business in the US as well as one-off costs relating to the Group's other acquisition investigations and due diligence work which did not move forward during the year.

Exceptional items are those significant items which warrant separate disclosure by virtue of their scale and nature to enable a full understanding of the Groups financial performance.

5. Finance income

6. Finance costs

7. Taxation

1 See Note 1 Restatement of prior years

The effective rate of tax is higher than the standard rate of UK tax due to the impact of the UK restructuring and the mix of profits from overseas operations where the tax rates are higher than the UK.

In April 2014 the rate of UK corporation tax was reduced from 23% to 21% giving an effective tax rate of 22.7% for the financial year ended 31 May 2014. A further reduction in the UK corporation tax rate from 21% to 20% was substantively enacted at the balance sheet date and will take effect from 1 April 2015. The relevant deferred tax balances have been re-measured accordingly. Included in the deferred tax charge above is an amount of £26,000 arising from the change in the UK tax rate.

8. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following :-

[a] Figure has been adjusted for a profit of £18,000 (2013: £10,000) attributable to non-controlling interests.

[b] During the year the Company held 1,240,000 of its ordinary shares in treasury. 

As at 31 May 2014 and 31 May 2013 there were no potentially dilutive shares in issue on either of the Company's two classes of shares. Accordingly, there is no difference between the weighted average number of shares used in the basic and diluted earnings per share calculations.

1 See Note 1 Restatement of prior years

9. Dividends

As at 31 May 2014, the Company holds 1,240,000 Ordinary shares in treasury which represents 16.9% of the Ordinary share capital and 7.6% of the Company's total share capital. The Company is not able to vote on the treasury shares and the treasury shares carry no right to receive any dividend or other distribution of assets other than in relation to an issue of bonus shares.

The proposed final dividend is subject to approval by shareholders at the Annual General Meeting to be held on 5 November 2014 and has not been included as a liability in these financial statements.

Subject to final approval by shareholders the final dividend will be paid on 13 November 2014 to shareholders on the register at the close of business on 24 October 2014. The shares will be declared ex-dividend on 23 October 2014.

10. Analysis of the changes in net funds

11. Acquisition

On 17 September 2013, Haynes North America Inc, a 100% subsidiary of the Group, acquired the trade and certain assets and liabilities including intellectual property, trade receivables and finished goods inventory marketed and sold under the Clymer and Intertec brands from Penton Media, Inc in the USA. Clymer is the world leader in the sales of motorcycle and ATV repair manuals as well as producing a range of titles on marine and outdoor garden equipment, personal watercraft, snowmobiles and tractors. The cash consideration for the acquisition was £5.85 million ($9.25 million).

The table below shows the fair values of the assets and liabilities arising on the acquisition.

[1] The gross amount of trade receivables at the date of acquisition was £463,000. Management estimate that £12,000 of this amount will not be recoverable.

[2] There are certain intangible assets included in the Goodwill arising on acquisition of £735,000 (which is deductible for income tax purposes) that cannot be individually separated and reliably measured due to their nature. These items include Clymer's strong position and profitability in its market and anticipated synergies after its acquisition by the Group.

[3] The costs of acquisition of £172,000 were expensed as incurred in the period and were included as an exceptional item within administrative expenses (note 4).

The acquisition of the Clymer and Intertec brands contributed £1.5 million of revenue during the period. However as the trade and assets have been amalgamated with the US business it is not possible to quantify the amount of profit contribution from the acquired business during the period. If the acquisition had been made at the start of the financial period the revenue from the acquired business would have been £2.2 million but for the reasons outlined above it is not possible to quantify the associated profit contribution during this period.

12. Retirement benefit obligation

The Group has a number of different retirement programmes in the countries within which it operates. The principal pension programmes are a contributory defined benefit scheme in the UK and a non-contributory defined benefit plan in the US. The assets of all schemes are held independently of the Group and its subsidiaries.

As at 31 May 2014 the financial position of the two defined benefit schemes have been updated by qualified independent actuaries in line with the requirements of IAS 19 and the combined movements on the two schemes are shown below :

1 See Note 1 Restatement of prior years

13. Other information

The Directors Report and audited Report & Accounts for the financial year ended 31 May 2014 will be posted to shareholders on 29 September 2014 and delivered to the Registrar of Companies following the Annual General Meeting which will be held on 5 November 2014. Copies of the Directors' report and audited Report & Accounts will be available from the Group Company Secretary, Haynes Publishing Group P.L.C., Sparkford, Near Yeovil, Somerset BA22 7JJ (telephone 01963 440635) after 29 September.

This results announcement is not being posted to shareholders, but is available on the UK website http://www.haynes.co.uk/investor.