Haynes revenues and profits rise

Haynes Publishing's adjusted operating profits rose by 28% to £3.2m in the year to the end of May.

Revenues rose by 16% to £29.8m with the acquisition of OATS Limited in December 2016, a leading global equipment and lubricants database, adding £1.0m to group revenue and £0.1 million to group profit before tax.

Revenue from the group's digital products increased YoY by 51% to £11.9 million (2016: £7.9 million) representing 40% of total group revenue (2016: 31%).

Other highlights:

- UK & European revenue up 35% YoY driven by HaynesPro growth in Europe and strong sales of UK non-automotive titles.

- Local currency North American & Australian revenue down 18% YoY.

- Group investment in new product development up 23% to £7.9 million (2016: £6.4 million).

- Property disposals in the US and Australia, and decommissioned US plant & equipment generate £4.3 million of cash inflow.

- Group net cash increased to £3.7 million (2016: £0.4 million).

- Net cash generated from operating activities (after tax) of £9.9 million, up 27% YoY (2016: £7.8 million).

The group's adjusted EBITDA rose by 24% to £10.4m and adjusted pre-tax profits were up 37% at £2.6m.

Chairman Eddie Bell said: "2016/17 has been a very encouraging year for Haynes. We have implemented a major restructuring programme that has significantly lowered the Group's fixed cost base.

"The new Executive Management Team has delivered on their financial targets and the Group has realised strong underlying revenue and profit growth.

"Following the acquisition of OATS, a leading global lubricants database, we have strengthened and broadened our professional product offering, whilst our considerable investment in consumer digital initiatives has established a clear path for future growth."