Haynes Publishing Group reports falls in revenue and profits

Haynes Publishing Group P.L.C., the publisher  of automotive and motorcycle repair manuals, has reported falls in revenue and profit in its results for the year ended 31st May 2013. However, the profits were slightly ahead of market expectations.

Financial highlights

  • Revenue of £27.6 million (2012: £29.8 million)
  • EBITDA of £6.6 million (2012: £7.7 million)
  • Operating profit of £3.8 million (2012: £5.1 million)
  • Profit before tax slightly ahead of market expectations at £3.6 million (2012: £4.7 million)
  • Basic earnings per share of 16.4 pence (2012: 20.0 pence)
  • Final dividend declared of 4.0 pence per share, giving a total dividend of 7.5 pence per share (2012: 15.7 pence)
  • The largely contractual HaynesPro revenue was 13% ahead of 2012
  • Australian revenue 9% ahead of 2012
  • Operating profit to cash conversion ratio of 184% (2012: 170%)
  • Healthy balance sheet with net funds up 27% at £6.1 million (2012: £4.8 million). Net funds after the acquisition of Clymer and Intertec Manuals on 17 September 2013 were c.£2.4 million. In addition there are 1.2 million ordinary shares held in treasury

Business highlights

  • Clymer and Intertec Manuals acquired from Penton Business Media 
  • Successful completion of strategic review (post year-end), resulting in new focus on high margin titles
  • UK automotive and general publishing editorial teams to be merged
  • Embarking on the development of a new, interactive consumer website, available in multiple languages, and accessible on a variety of media devices
  • Continued development of Haynes multimedia digital platforms
  • Digital manual range extended to over 350 titles; print manual range also expanded
  • Completion of rebranding of European professional product range as ‘HaynesPro’ (formerly Vivid), with strong twelve month growth and two new products launched for professional automotive aftermarket
  • Expanded technical team in Romania to further improve digital capabilities
  • Continuing to review new acquisition opportunities

UK, Yeovil, Somerset & Overland Park, KS

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Haynes Publishing Group acquires Clymer and Intertec Manuals

HaynesLogoHaynes Publishing Group P.L.C. , the UK based publisher of automotive and motorcycle repair manuals, has acquired the assets of Clymer and Intertec Manuals from Penton Business Media for $9.25 million (£5.85 million) in a cash and debt deal, with around 60% of the funding for the acquisition coming from internal cash. Clymer is located in Overland Park, Kansas in the United States.

Founded by Floyd Clymer (1895-1970), Motorcycle Hall of Fame’s ‘pioneer in the sport of motorcycling’ Clymer is a publisher of DIY repair manuals for Motorcycle owners. It also has a significant share of the DIY Marine (Inboard and Outboard) Manuals market; publishes a range of DIY manuals for personal watercraft and snowmobiles; and, under the Intertech name, publishes manuals for farm equipment including Tractors, publishing 432 manuals across thousands of models in digital and print. For the financial year ended 31 December 2012, Clymer had net assets of $2.8 million (£1.8 million), unaudited revenue of $4.3 million (£2.7million) and unaudited pre-tax profitability of $1.0 million (£0.633million).

The acquisition will be earnings enhancing and also release significant efficiencies in the areas of print cost, warehousing and distribution, and editorial/origination, with additional digital offerings representing further opportunities for growth.

Commenting on the acquisition, Eric Oakley, Group CEO of Haynes, said “Clymer is a business that we have been interested in for some time and we are delighted that we are now bringing such an iconic name, particularly among motorcycle owners and DIYers, into the Haynes Group.  We see many synergies between our two businesses, in terms of products and values, and we see real opportunities for revitalisation and growth.”

With almost 60% of the funding for the acquisition coming from internal cash, the Group remains financially well placed to continue its pursuit of other new opportunities as they arise.

UK, Yeovil, Somerset & Overland Park, KS

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