Haynes sees profits tumble

Haynes sees profits tumble

Haynes Publishing Group saw an 11% revenue drop for the 12 months to end May 2015 at £26.1m, down from £29.3m the year before. Adjusted EBITDA at the car manuals publisher was down 20% to £8.7m (£10.9m in the year to end May 2014) while operating profit fell 35.5% to to £3.1m (from £4.8m).

Haynes issued a profit warning last December, citing "soft" trade and tighter inventory controls from retailers.

Non-executive director Eddie Bell is to become non-executive deputy chairman to facilitate a cost and operational review across all jurisdictions, presenting his findings to the board in early 2016.

Meanwhile group chief executive officer Eric Oakley and Dan Benhardus chief financial officer, are to retire at the end of the financial year, after 35 and 27 years' service respectively.   

Group chairman J Haynes said: "Our final year results are reflective of the challenging trading conditions that we are encountering in all consumer markets. The second half of the year was stronger, as expected, but the business continues to be affected by these challenging trading conditions, most notably in our important North American market." However the HaynesPro business, which supplies technical data via web services, saw increased revenue growth following continued investment in product development, he said.

The chairman added: "Although trading remains challenging, it is encouraging that group first quarter revenue to 31st August 2015 is 2% ahead of the prior year. HaynesPro revenues continue to grow and were 7% ahead while the consumer business had more mixed results with USA and Australian first quarter revenues 2% behind, and the UK 6% ahead of the same period last year."  HPG continues to develop its digital content and delivery platforms, such as Teon Media, which it acquired in February, and has recruited Andrew Golby as global digital director. Golby, who has an "extensive" background in automotive media, starts this month.

Haynes thanked Oakley and Benhardus for their "considerable contributions to the business during their long and distinguished careers", saying that the ample notice they had given their fellow board directors would facilitate a non-disruptive succession process.