Haynes warns profits will be hit by US tax rate

Haynes warns profits will be hit by US tax rate

Car manual producer Haynes Publishing Group has said it expects adjusted profit before tax to be up by 10% on the previous year when it reports its annual financial results. However, group profit after tax is expected to be 5% lower than the previous year due to changes to the US tax rate, the company warned.

The publisher has released the trading update ahead of its full year results, which will be announced in September.

The firm said that the net impact of adjusting items is expected to increase reported profit before tax by £600,000. However, changes to the US federal tax rate will reduce the business's US net deferred tax assets and liabilities by £800,000, meaning group profit after tax and adjusting items is expected be 5% lower than the prior year.

Eddie Bell, group chairman, said the company's performance is "tracking ahead of market forecasts".

“Our focus remains on the delivery of content, data and solutions for our local and global partners", he said. "To maintain the current momentum, Haynes will continue to invest in our people and technology to ensure we provide reliable, accurate and valuable information."

The company will be announcing its full year results for the financial year ended 31 May 2018 on 5th September 2018.