HYNS.L Regulatory News (HYNS)

Haynes Publishing Group P.L.C. ("the Company")

Pre-Close Trading Update

As previously reported, during the first six months of the financial year the Group encountered some of the most challenging trading conditions in its 50 year history which led to pre-tax profits, at that time, ending the period 35% down on the prior year and to the Group lowering its expectations for the full year of trading. During the third quarter the Group experienced a slight improvement in trading in its important US market, although trading was still marginally below last year; while in the UK, sales of our automotive repair manuals were weak on the back of lower ordering from key retailers.

As the Group approaches the close of its financial year, management are reporting that sales of automotive repair manuals on both sides of the Atlantic during the fourth quarter have been slower than last year. In light of the soft fourth quarter trading, management do not foresee a significant improvement in full year pre-tax profits from the trend experienced during the first half of the year. Notwithstanding the weaker trading, the Group continues its substantial investment in developing new electronic platforms for the delivery of its global automotive database and in so doing is laying the foundations for future revenue and profit growth for the Haynes Publishing Group. Despite this investment, the Group balance sheet and cash flow position remains strong.