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17 Apr 2009 09:28
HAYNES PUBLISHING GROUP P.L.C. ("the Haynes Group")
Interim Management Statement
Quarter 3 - 13 weeks to 27 February 2009
Third quarter business highlights
On 27 February 2009, the Haynes Group disposed of its UK printing operation for a consideration of £0.4 million. In the last financial year, the UK print operation made a loss, before the allocation of central overheads, of £0.6 million. Following the disposal, the Group's remaining printing operations have been centralised in the US, where UK & European automotive manuals are already printed. Under the terms of the sale, the manufacturing costs of the Haynes UK Book Division titles, which will continue to be printed by the purchaser for a period of 12 months from completion, have been protected until the end of February 2010 with a realistic expectation of print cost savings beyond this timeframe. Apart from the disposal there have been no other significant changes in the financial position of the Group since the half year.
Third quarter trading
Group revenue during the third quarter, on a like for like basis was down 9%. In the UK and Europe, revenue was down 3% while in the US, revenue was down 12% in local currency. However, following favourable movements in the US Dollar exchange rate and after inclusion of revenue from the Vivid group acquired at the end of February last year, both of which had a similar beneficial impact, reportable Group revenue increased by 25%.
Our results at the half year were impacted by retailers reducing inventory levels, as pressures on their working capital continued to tighten. We mentioned that this was a situation we felt could not continue indefinitely if retailers were to avoid losing consumer sales. Although, mid-way through our fourth quarter we have seen a slight improvement in underlying sales, we are still experiencing de-stocking from our major customers and as such still hold similar concerns.
In November 2008, at our half year, Group profit before tax was down 39% on last year as lower volumes and increased raw material costs affected margins. Whilst the Group has experienced similar trading conditions during the third quarter ended 27 February 2009, which will have an impact on second half trading, management is confident that overall, performance will show an improvement when compared with the results announced at the half year.
The Haynes Group will report its preliminary results for the financial year ending 31 May 2009 and 4th quarter trading on 10 September 2009.
Cautionary Statement :
This report contains certain forward-looking statements with regards 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.
Enquiries :
Haynes Publishing Group P.L.C.
John Haynes OBE, Chairman 01963 442009
Eric Oakley, Group Chief Executive 01963 442009
Smith & Williamson
Barrie Newton 0117 376 2117
Background to the Haynes Group
Haynes Publishing Group P.L.C. 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 to our customers are inherently practical, accurate and easy to follow.
Through its subsidiary Vivid Holding BV, with headquarters in the Netherlands, the Haynes Group has become a leading European supplier of digital technical information to the motor trade, thereby broadening the Group's business to include professional as well as DIY mechanics and enthusiasts.
The Haynes Group also publish an extensive array of books about motoring and motor sport as well as other transport, aviation, military and general DIY related activities.
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