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Lower than expected profits at Haynes

02.08.07 Tom Tivnan

Motor manual publisher Haynes has reported a lower pre-tax profit than expected due to a 5% dip in turnover, but said a change in strategic focus during the year meant it was "well placed" to increase earnings and revenue in the coming year.

Operating profit on continuing operations for the full year to 31st May fell to £7.2m from £8.9m the previous year. Turnover tumbled to £29.2m, down from £30.6m in 2006.

In a statement, chairman John Haynes said: "The year under review has been one of measured progress for the Haynes Group, where the reduction in pre-tax profits, to a large degree, masks the progress that is being made to focus the Group on its core areas of strength and market leading expertise."

The year was one of restructuring for the group. In February 2007 it sold Sutton Publishing back to former owner Alan Sutton for £3m and closed its loss making French division in November 2006.

In the coming year, Haynes says it hopes to further expand into new product ranges, such as the retro clothing range they developed with high street retailer Next in early 2007. It also aims to expand into new geographic markets and develop new book ranges based on its "tried, tested and trusted" Haynes DIY manual format.

The group said it will have to look at further strategic partnerships and acquisitions. Haynes began the current financial year in June by purchasing four Austalian companies all in the book origination, printing and distribution business, for AUD $1.5m (approximately £0.6m).

haynes tom tivnan

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