TIDMHYNS
RNS Number : 5028K
Haynes Publishing Group PLC
22 September 2016
HAYNES PUBLISHING GROUP P.L.C.
RESULTS FOR THE YEARED
31 May 2016
Haynes Publishing Group P.L.C. ("the Group") creates and
supplies practical and informative content to consumers and
professional mechanics in print and digital formats.
Our consumer content is delivered via both print and digital
channels around the world. Through our Haynes, Chilton and Clymer
brands, the Group is the worldwide market leader in automotive and
motorcycle repair manual sales.
HaynesPro is a leading supplier of technical information to
professional mechanics. Content is delivered entirely digitally on
a subscription basis to over 40,000 workstations in over 25
languages across Europe.
The Group also publishes an extensive range of practical and DIY
titles covering a wide variety of subjects, as well as a range of
light entertainment manuals styled on the iconic Haynes Manual.
Group financial highlights
- Revenue down 2% at GBP25.7 million (2015: GBP26.1 million)
- Adjusted EBITDA(1) of GBP8.4 million, down 5% (2015: GBP8.7 million)
- Adjusted operating profit(1) of GBP2.5 million, down 19% (2015: GBP3.1 million)
- Adjusted profit before tax(1) of GBP1.9 million, down 24%
(2015: GBP2.5 million). Reportable loss before tax and after
exceptional items of GBP2.5 million (2015: loss of GBP7.2
million)
- Adjusted basic earnings(1) per share of 7.6 pence (2015: 10.7 pence)
- Final dividend declared of 4.0 pence per share, giving a total
dividend of 7.5 pence per share (2015: 7.5 pence)
- Revenue from the Group's digital product ranges up 23% at
GBP7.9 million (2015: GBP6.4 million)
- Net cash(2) of GBP0.4 million (2015: GBP0.1 million) with 1.2
million shares still held in treasury
- Operating cash flow of GBP7.8 million (before product
development) (2015: GBP8.7 million)
- Exceptional charge during the year of GBP4.4 million (2015:
GBP9.8 million) in relation to the operational, cost and structure
review announced in September 2015.
Business highlights
- Following the global operational, cost and structure review
announced in September 2015, US production and distribution is to
be outsourced, US operations to be consolidated in California and
Nashville freehold properties to be marketed for sale.
- New global digital director recruited October 2015 with new
digital team in place by May 2016.
- Implementation of new global website progressing to plan with
launch of new UK site in August 2015 and new US website launched in
July 2016.
- Investment in new product development increased to GBP6.4
million, up 14% (2015: GBP5.6 million)
- New Board roles and appointments following retirements of
former Chief Executive Officer and Group Finance Director.
Eddie Bell, Group Chairman, said:
"The Haynes Group is currently in transition. However, with our
new board and management team in place and with the cost and
strategy review being implemented, we can now focus our resources
on developing new products and pursuing exciting revenue and profit
enhancing initiatives.
"Our unrivalled core automotive content coupled with our
in-house digital expertise and technological capabilities will be a
key driver to the Group achieving this revenue and profit growth in
both our consumer and professional markets".
Notes to the financial highlights :
(1) Adjusted to exclude GBP4.4 million of exceptional costs
(2015: exceptional costs of GBP9.8 million). Reported operating
loss of GBP2.0 million (2015: loss of GBP6.7 million). Reported
loss per share was 11.8 pence (2015: loss per share of 39.2 pence).
EBITDA including exceptional items was GBP4.0 million (2015: GBP8.6
million).
(2) Net cash defined as cash at bank net of bank overdrafts and
bank loans.
Enquiries :
Haynes Publishing Group P.L.C. +44 1963 442009
Eddie Bell, Chairman
J Haynes, Chief Executive Officer
Investor Contact: Panmure Gordon (UK) Limited +44 20 7886 2500
Karri Vuori
Erik Anderson
Will Wickham
Media Contact: New Century Media +44 20 7930 8033
Richard Hill
Cautionary Statement :
This report contains certain forward-looking statements with
regard to the financial condition and results of the operations of
Haynes Publishing Group P.L.C. These statements and forecasts
involve risk factors which are associated with, but are not
exclusive to, the economic and business circumstances occurring
from time to time in the countries and sectors in which the Group
operates. These forward-looking statements are made only as at the
date of this announcement. Nothing in this announcement should be
construed as a profit forecast. Except as required by law, Haynes
Publishing Group P.L.C., has no obligation to update the
forward-looking statements or to correct any inaccuracies
therein.
Chairman's Statement
In this my opening Annual Report as Haynes Group Chairman, and
as the first non-Haynes family member to hold this position in the
Group's 56 year history, I would like to begin by saying how much
of an honour it is to be chairing the Board at such a crucial time
for the business. I take the reins at a time when there are clear
challenges to the fundamentals of the business. Yet, despite these
challenges, I am confident that through the actions outlined in
this report the Group is on course to becoming a leaner, fitter and
financially stronger business.
In September 2015, I was asked by the Board to undertake an
operational cost and structure review of the Haynes Group
companies. During this review process, I gained a valuable insight
into the detailed workings of the Haynes business. This involved
spending time with management in the underperforming areas of the
business where we have experienced revenue and profit decline in
recent years and also meeting with management and key employees in
the growth parts of the business where I was able to see at first
hand the cultures which have helped to facilitate this growth and
development.
Having headed up similar corporate restructuring programmes in
the past, it soon became apparent that direct action was required
to address the high structural cost base in our North American
business where the rate of sales decline has accelerated over the
last two years. Whilst, manifestly, a review like this focuses on
the areas of the business in decline, it was also important for the
review to evaluate the growing parts of our business, such as our
digital product ranges, to ensure investment and resource levels
were adequate to facilitate future expansion and growth.
Financial highlights
This has been a mixed year of trading for the Haynes Group, with
strong revenue and profit growth from our professional product
ranges in Europe offset by lower sales of our consumer print
manuals in North America and Australia. In our UK business, we
continue to make steady progress following the extensive
restructuring in 2013/14 and, whilst this part of the business is
still loss making, the losses have reduced each year since the
restructuring and in 2015/16 we had our first year-on-year increase
in printed automotive manual revenue since 2008.
The impact of the lower North American and Australian revenue
led to an overall reduction of 2% in Group revenue to GBP25.7
million (2015: GBP26.1 million) and a reduction in profit before
tax and exceptional items of 24% to GBP1.9 million (2015: GBP2.5
million).
Operational, cost and structure review
At the time of reporting our half year results in January 2016,
the Board were still evaluating the review's findings. I can now
confirm that following a full evaluation and discussion, the Board
endorsed all the recommendations in my report and in May 2016 we
announced to the market that implementation of the recommendations
had begun.
When the founder, John Haynes, set up the Haynes business 56
years ago with a vertically integrated structure, it allowed the
business to internally control the editorial process, design,
printing and distribution of the iconic Haynes manuals which, at
that time, was an important factor in the growth and international
expansion of the business. However, with the steady decline of
print automotive manual sales in recent years and the access to
specialist printing and distribution partners, the fundamentals
have changed. Seven years ago, when we sold our UK print operation
and moved all group printing to Nashville, based on our volume
sales at that time, we could print our manuals in the US and
distribute to the UK and Australia cheaper than we could source
externally. Today, this is no longer the case and it was very
evident during my review that quick action was required to help
protect the margins in our print products from further erosion.
Following extensive due diligence, in May 2016 we signed a three
year print deal with Times Offset in Malaysia and the first of the
new outsourced print manuals for publication in August 2016 were
delivered on time in July.
Following the decision to outsource UK distribution in 2013/14
and with clear parallels between the UK and US distribution
operations, I also evaluated the rationale for maintaining a US
in-house distribution facility. With declining print manual sales
and the Group investing heavily in new digital platforms for both
our professional and consumer markets, it no longer made commercial
sense to fund capital expenditure programmes in an operation which
could cost effectively be outsourced. For these reasons the
decision was taken to close the US distribution operation and
outsource this part of our business.
In our European consumer business, we evaluated the Group's
sales operation in Sweden and concluded that the Scandinavian and
Nordic customer base no longer required a permanent establishment
in Sweden and could just as efficiently be supported directly from
the UK. Accordingly, in May 2016, we took the decision to close our
Swedish sales company, Haynes Nordiska AB.
Exceptional Item
Included within this set of results are one-off exceptional
costs of GBP4.4 million which relate to the restructuring costs
associated with the operational, cost and structure review. The
costs primarily relate to severance packages for employees affected
by the restructuring, asset write-downs in our US production and
distribution operations and a sales returns reserve.
Board
On 31 May 2016, Eric Oakley and Dan Benhardus retired from the
Board after 62 years of combined service to the Group and, on
behalf of the Board, I would like to thank both Eric and Dan for
their considerable contribution and loyal service during their time
in office.
I am pleased to welcome J Haynes in his new role as Chief
Executive Officer, having served as Group Chairman since June 2010.
J's understanding of the history and cultures within the Group, his
drive and energy and his vision for the future make him ideally
placed to take on this role. I also welcome James Bunkum who takes
over as Chief Financial Officer. James assisted me on the recent
operational, cost and structure review and I have no doubts that
the experience gained in this exercise will be invaluable to James
in his new role.
In March 2016, we announced new roles for two Group Board
Directors. Jeremy Yates-Round became Managing Director Consumer
Publishing, adding global publishing, production and responsibility
for the Australian business to his existing role as UK Managing
Director. Alex Kwarts, takes on a new role for the Group as Chief
Technology Officer, reflecting the importance new technology now
plays for the Haynes Group. We also announced that Richard Barker
had taken over the role of UK and European Finance Director and
Group Company Secretary from James Bunkum following James's
promotion to the Board.
Previously we have stated our intention of recruiting two new
Non-Executive Directors to the Board. I am pleased to confirm this
process has been successfully completed with the appointments of
Stephen Daykin and Nina Wright from 1 August 2016. Stephen is a
chartered accountant with a wealth of experience in media, digital
and turnaround businesses and is well placed to take on the role as
Chairman of the Audit Committee. Nina works for UBM plc and has
held a number of positions within the UBM Group. Nina is a talented
media executive with first-hand experience of driving structural
and cultural change and takes on the role as Chairman of the
Remuneration Committee. I am delighted to welcome both Stephen and
Nina to the Board and look forward to working with them both in the
coming months.
Our employees
Over the last six months, all parts of the Group have been
affected to some degree by the restructuring announced in May.
Change is by its very nature disruptive and unsettling; not only
for those who are directly affected but also for the employees
remaining in the business. During these challenging times, our
employees have pulled together to help implement the necessary
changes and, on behalf of the Board, I would like to thank all our
staff for their past, present and anticipated future contribution
to the success of the Haynes Group.
Dividend
The Board recommends an unchanged final dividend for the year of
4.0 pence which, together with the interim dividend paid in April
2016, maintains the total dividend for the year at 7.5 pence (2015:
7.5 pence). Subject to approval by shareholders, the final dividend
will be paid on 17 November 2016 to shareholders on the register at
the close of business on 28 October 2016 (with an ex-dividend date
of 27 October 2016).
Outlook
The Haynes Group is currently in transition and both the Board
and executive management are fully committed to tackling the
challenges which lie ahead and focussing on the long term growth of
the business.
In conclusion, the Haynes Group has an iconic brand which is
globally recognised and trusted and one of the business' greatest
assets. We also have unrivalled content and have invested heavily
in our talent to ensure that we can make this content available to
new audiences through the development of new technologies and
digital products, in both our consumer and professional businesses.
As a result, we are well positioned to improve the overall value of
the Group.
Eddie Bell
Chairman
21 September 2016
Chief Executive's Review
Trading Performance FYE 2016
Overall Group revenue ended the year down 2% against the prior
year at GBP25.7 million (2015: GBP26.1 million) leading to a
reduction in profit before tax and exceptional items of 24% to
GBP1.9 million (2015: GBP2.5 million).
When reporting our half-year results in January 2016, we
commented that trading in our North American and Australian
businesses had been difficult with local currency revenue in this
part of the business down 11%. This trend continued into the second
half with year-end revenue down 12% at GBP12.5 million (2015:
GBP14.2 million).
In the UK and Europe, sales of our non-automotive titles ended
the year down 5%. Sales of our automotive manuals ended the year 4%
up on the prior year. This is the first sales increase for this
product category in five years, and reflects the successful
delivery of new initiatives with key retailers.
European revenues increased significantly following another
strong performance by HaynesPro. Our European operations achieved
local currency revenue growth of 29%, clearly illustrating the
continued commercial value of HaynesPro's ability to integrate
automotive technical data. Significant commercial gains were
achieved in the diagnostic equipment market and we remain the
preferred supplier for three of the five international trading
groups in Europe. Overall UK and European revenues ended the year
up 11% at GBP13.2 million (2015: GBP11.9 million).
First Quarter Trading
Strong first quarter trading from our professional product
ranges in Europe helped offset continued weaker trading in North
America. Revenue from the UK operation is slightly ahead of the
prior year. Excluding the positive impact of exchange rate
movements, like-for-like Group revenue through the first quarter of
2016/17 is tracking 3% ahead of last year.
Operational, Cost and Structure Review ("the Review")
During the year, a Group wide operational, cost and structure
review was completed which evaluated and prioritised the areas that
need to be addressed to place the Group on a stronger footing. I am
pleased to report that the recommendations of the Review are
progressing to plan.
Executive Management Team (EMT)
As recommended by the Review, a global Executive Management Team
with responsibility for the operational day-to-day running of the
business, and the implementation of the Group's strategic vision,
has been created. This team has been created with senior management
from all parts of the business represented. The members of the team
will be attending the Haynes AGM on Wednesday 9(th) November 2016
and I invite all our shareholders to join us and take the
opportunity to meet them.
North America and Australia
Jim Nicholson, who has held the position of Vice President of
Finance since 1999, has taken over as Senior Vice President of
Haynes North America. Jim has overall operational responsibility
for the US business, including the delivery of the print and
distribution restructuring. He will be working closely with the US
sales teams to improve sales performance.
In May 2016, we announced plans to close our Nashville print
facility. The first manuals were delivered from Times Offset in
Malaysia in July 2016 and we expect the last manuals to be printed
in Nashville during December 2016, at which time we will
decommission and sell the production equipment.
In July 2016, a contract was signed with Ware-Pak, a Chicago
based book distributor. Inventory is presently being transferred to
their facility from our Nashville warehouse and we expect that this
process will be completed by the half year in November. The
decision to outsource US distribution led to the closure of our
West Coast warehouse in June 2016, as a result of which, all US
staff will relocate to a single office at our present facility in
Newbury Park, California.
Once internal production and distribution have ceased, we will
no longer require the two freehold buildings in Nashville, and will
look to sell these properties in a timely manner.
In Australia, Ian Whitefield, who has been part of the
management team since 2007, has taken over as General Manager. The
Review identified a management heavy structure, and a lack of sales
and marketing resource that left the business unable to manage
sales channels proactively. The Review also identified that the
location of the existing freehold premises was not suitable for our
needs.
Following the Review, the Australian business has a new
management structure, additional sales resource and in June 2016 we
exchanged contracts on the freehold property with completion
expected in mid-December 2016.
UK and Europe
Following the UK restructuring in 2013/14, we put the UK
freehold site in Sparkford on the market. Although the property has
been on the market since this time, no commercial expressions of
interest were received. Therefore an application to change the use
to residential was made, and I can confirm that in July this year
this application was approved. We are currently re-marketing the
property with outline planning for residential development.
In our UK operations, we are increasing the number of vehicles
we strip down in our workshops. This will generate increased sales
opportunities for our printed and digital manuals, and also deliver
additional video content for our digital platforms.
On 1 April 2016, Peter van der Galiƫn was appointed the new
managing director of HaynesPro, taking over the role from Alex
Kwarts. Alex remains on the HaynesPro board as Founder Director.
Peter was previously the Sales and Marketing Director in HaynesPro
and has been a major driving force behind the recent growth in
revenue, which makes him well placed to take on his new role. The
HaynesPro board has been strengthened by the appointment of two
additional directors. Rob Suikerbuik has been promoted to IT &
Technical Director and Dennis de Buck has been appointed Product
and Segment Development Director.
In the Netherlands, the Review identified a need to increase
resources to ensure that operational functions have adequate
resource to drive future growth. As a direct result of the Review,
HaynesPro will be actively recruiting to strengthen its team in the
Netherlands over the course of the coming year.
Group
When the above restructuring has been completed, it will result
in the loss of approximately 40 job roles, predominately from our
North American production and distribution operations. The one-off
cost to the Group of the restructuring will be GBP4.4 million,
which, after taking account of anticipated disposal proceeds on
decommissioned equipment, will result in a net cash outflow of
close to GBP2.2 million. The savings which will come from
outsourcing production will not fully benefit Group profitability
until current inventory levels clear down, which we expect to occur
over the course of the next two years.
Once all of the recommendations have been fully implemented, the
Group expects to realise substantial savings that it will use to
invest in the enhancement of our print manuals, the continued
development of new consumer facing digital content platforms, and
the development of our professional market services.
The main operational elements of the Group restructuring are
planned to be completed by early 2017.
People
The integrity of the information we distribute is at the very
core of the Group. The creation, editing and dissemination of
reliable and accurate information is the bedrock of our Company. I
am grateful for the continued hard work, dedication and creativity
of everyone in the Haynes Group, which is particularly appreciated
during a period of structural change. In my new role as Chief
Executive Officer, I have had the opportunity to spend time with
our North American and UK teams and I look forward to visiting our
teams in Europe and Australia in the near future.
In order to grow the business we are actively looking to expand
our editorial and digital teams. We are building our content team
by bringing on board additional editorial resource, as well as
adding new digital expertise to strengthen our consumer and
professional businesses.
Financial review
Group revenue
In our North American and Australian markets, it was
disappointing that the expected pick up during the first half of
the year, following a challenging first half of trading in 2014/15,
did not materialise, with local currency revenue ending the first
six months of 2015/16 down 11%. In the second half of the year, we
experienced a further deterioration in trading with local currency
revenue for the six month period down 22% and overall North
American and Australian revenue ending the year 17% down on the
prior year. With Sterling weaker against the US Dollar, the average
rate for our financial year ended 31 May 2016 was $1.49 against
last year's average of $1.58. The positive exchange movement helped
reduce the shortfall in US revenue on translation to Sterling by
GBP0.7 million and left US revenue in Sterling terms down 12% for
the year.
In the UK, like-for-like revenue before the sales of titles
discontinued in 2013/14, ended the first six months up 11%.
Including sales of the discontinued titles, the increase was lower
at 1%. As noted at the half year, this improvement came on the back
of some very weak ordering from key customers in the first half of
2014/15 and with ordering patterns returning to more normal levels
during the second half of last year, we did not expect this
positive trend to continue into the second half of 2015/16. This
caution was borne out with UK revenues in the second half of the
year down 7%. Nevertheless, overall UK revenue ended the year, on a
like-for-like basis, up 1% but after taking account of the
discontinued titles, UK revenue ended the year down 4%.
In Europe, the strong trading performance from our range of
professional products during the first six months of the year led
to local currency revenue increasing by 27% over the previous six
month period. This strong performance by HaynesPro continued into
the second six months, with local currency revenue ending the full
year up 29%. Over the 12 month period, Sterling strengthened
against the Euro leading to an average rate for the year of EUR1.35
against last year's average of EUR1.31 which reduced overall Group
revenue by GBP0.2 million and left European revenues in Sterling
terms 25% ahead of last year.
Boosted by the performance from our professional product ranges,
revenue from the Group's digital products ended the year up 23% at
GBP7.9 million (2015: GBP6.4 million) and now represent 31% of
total Group revenue (2015: 24%).
Gross margin
The lower sales of consumer print manuals in North America and
Australia had a negative impact on the Group's gross margin but was
largely offset by increased revenue from the higher margin digital
professional product ranges in Europe. The net impact of these two
factors left the overall gross margin before exceptional costs in
monetary terms down 1% at GBP15.5 million (2015: GBP15.7 million)
but the higher mix of digital revenue helped maintain the gross
margin at 60.3% (2015: 60.2%).
Group operating profit
Group operating profit before exceptional costs ended the year
19% down on last year at GBP2.5 million (2015: GBP3.1 million). A
full year of operating cost in our HaynesPro German subsidiary set
up in May 2015, increased sales commissions on the higher
professional product sales in Europe; an increased Pension
Protection Fund (PPF) levy; and higher professional costs in our UK
pension scheme following the finalisation of the latest triennial
valuation led to an increase in overall Group overheads of 3% to
GBP13.1 million (2015: GBP12.7 million).
As mentioned earlier in this report, during the year the Group
incurred exceptional costs of GBP4.4 million in relation to the
operational, cost and structure review. The restructuring costs of
GBP4.4 million primarily relate to employee severance packages,
asset write-downs, a sales returns reserve and one-off past service
pension costs. This compares to the GBP9.8 million of exceptional
costs in the prior year following the non-cash impairment of North
American & Australian intangible assets.
Net finance costs which relate to the interest on servicing the
UK overdraft and the Clymer acquisition loan in the US were in line
with the prior year at GBP0.1 million (2015: GBP0.1 million). Other
finance costs, which relate to the interest charge on the pension
schemes' liabilities net of interest on the pension schemes'
assets, also ended the year in line with the prior period at GBP0.5
million (2015: GBP0.5 million).
Group earnings and earnings per share
Group pre-tax profit before exceptional costs ended the year
down 24% at GBP1.9 million (2015: GBP2.5 million). The Group tax
charge for the year before exceptional items was GBP0.7 million
(2015: GBP0.9 million) giving an effective tax rate before
exceptional items of 38.6% (2015: 35.3%). The Group's effective
rate of tax for the year is a mixed rate which reflects the
countries where the Group pays tax and also the mix of profits
within those tax jurisdictions. Earnings per share before
exceptional items was 7.6 pence (2015: 10.7 pence).
North America and Australia segmental review
Segmental revenue from the North American and Australian
operations for the 12 months to 31 May 2016 ended the year down 17%
at $18.6 million (2015: $22.4 million). After translation to
Sterling, segmental revenue for the North American and Australian
business was GBP12.5 million, down 12% (2015: GBP14.2 million).
The decline in revenue from the North American and Australian
operations during the year has led to a corresponding reduction in
profitability from this part of the business with segmental
operating profit before exceptional items and interest ending the
year at $0.5 million (2015: $2.0 million) which after translation
to Sterling was down 75% at GBP0.3 million (2015: GBP1.2 million).
Including exceptional costs and interest the segmental loss for the
year was GBP3.4 million (2015: loss of GBP8.5 million).
UK and Europe segmental review
Overall UK and European segmental revenue ended the year up 11%
at GBP13.2 million (2015: GBP11.9 million). On a like-for-like
basis, excluding the impact of exchange movements, UK and European
revenue was up 13% at GBP13.4 million (2015: GBP12.5 million).
The impact of the strong trading from our European operations
led to UK and European segmental operating profit before
exceptional items and interest ending the year up 150% at GBP1.5
million (2015: GBP0.6 million). Including exceptional costs and
interest, the segmental profit for the year was GBP1.2 million
(2015: GBP0.5 million).
Balance sheet and cash flow
During the year, the Group continued to invest in new product
development and new consumer and professional digital platforms,
incurring development expenditure in the 12 months to 31 May 2016
of GBP6.4 million (2016: GBP5.6 million).
Capital expenditure in the year was lower at GBP0.3 million
(2015: GBP0.4 million) reflecting the strategic move away from a
vertically integrated higher capital cost business. In April 2016,
the UK business disposed of an empty property in Stroud, Gloucester
for GBP0.3 million realising a small gain of GBP0.1 million on the
sale.
As at 31 May 2016, the Group had net cash of GBP0.4 million
(2015: GBP0.1 million).
At 31 May 2016, the net deficit, as reported in accordance with
IAS 19, on the Group's two defined benefit retirement schemes
increased by GBP0.8 million to GBP15.1 million (2015: GBP14.3
million) with a deficit in the UK Scheme of GBP14.4 million (2015:
GBP13.3 million) and in the US Scheme of GBP0.7 million (2015:
GBP1.0 million). The combined total assets of the schemes reduced
to GBP31.4 million (2015: GBP32.7 million) and the total
liabilities reduced to GBP46.5 million (2015: GBP47.1 million) with
both reductions reflecting a pay-out of benefits of GBP3.1 million
to two former members of the US scheme.
As at 31 May 2016, the Group has provisions of GBP3.7 million
which it expects to incur over the next 12 months in relation to
the exceptional items charged to the income statement during the
year.
The net cash generated from operations before tax for the year
was GBP8.4 million (2015: GBP9.5 million) which represented 344% of
adjusted Group operating profit (2015: 311%).
Outlook and future developments
The Group's focus is now firmly on developing and growing its
two distinct but related content businesses. We are actively
evaluating opportunities to integrate our consumer and professional
data to create a unique blend of valuable practical content that
will further enhance our services and products for both drivers and
mechanics.
Integrating our product offering
We will focus on delivering our content to our customers, both
consumer and professional, in a variety of ways through
complementary platforms.
In the consumer market, we have made significant progress in our
plans to complement the information we provide in our manuals by
delivering content through digital channels. Our initial digital
strategic objectives are:
-- To establish Haynes as a digital brand
-- To broaden the distribution of our digital data through
existing retail customer and complementary channels
-- To enhance our manual product through the inclusion of access to digital content
-- To internationalise our digital offering
The initial stage of this strategy was the creation of a robust
web-based platform under the group domain of 'haynes.com'. This was
achieved following the recently launched new US website, which will
be followed by an enhanced UK website in October 2016. An updated
Australian site will follow in early 2017.
One of the key drivers underpinning the above strategy is the
way in which we organise our content. HaynesPro is highly
experienced in 'atomising' data, which enables content to be
interrogated in small subsets. A collaborative project between our
professional and consumer digital teams is evaluating atomising our
consumer information. We want to give our customers choice around
how they access our practical information. Our objective is to
enable our end users to be able to search with a combination of
flexibility and precision, either at a vehicle specific or task
specific level.
Our commitment to content creation is demonstrated by the
creation, to date, of over 1,000 video clips covering vehicle
specific maintenance and repair procedures. These clips will be
made available through in-store and online digital manuals, and
later in the year through Haynes OnDemand, our new consumer digital
platform currently in the final stages of development. We will also
be launching our first interactive App, based on our best-selling
Zombie Manual, later this year.
Innovation, integration, partnership and increased
efficiency
HaynesPro will remain committed to developing data products that
create value in the automotive aftermarket through innovation,
integration, partnership and increased efficiency. Future revenue
growth will come through new product innovation and further
development of customer networks. During the year, we have
integrated our diagnostic tools data into an interface that mirrors
our Touch screen version for tablets to ensure continuity of the
way the information is presented.
Our new Repair Times database will be fully operational later in
this calendar year, and will be followed by the launch of our new
Comfort Wiring Diagrams database early in 2017.
At the Automechanika professional trade show in Germany in
September 2016, we launched VESA Mk II. VESA is our unique
step-by-step guided electronics diagnostic solution, and the latest
version has been enhanced with nearly 20,000 manufacturer-specific
fault codes, and the significant expansion of component-specific
information linked to clearer schematics.
We will continue to invest in digital and IT staff, tools and
infrastructure. Behind the scenes, we've been improving our
software and hardware capabilities: for example, we've changed our
database from one based on Sybase to a MS SQL system that will
provide better performance and scalability.
We started the new financial year with a healthy appreciation
that we have some substantial challenges to overcome. I believe
that as a result of implementing the recommendations of the
operational, cost and structure review, the creation of a global
executive management team, the active encouragement of
collaborative working within the Group, and the freeing up of
resources to invest in our core activities, we are well placed to
grow the business.
As a Board, we understand that the turnaround of the Haynes
business will not happen overnight. However, through the actions
taken over the last 12 months and the clarity of our future plans,
I firmly believe we are on the right path to deliver future
success. This will be reflected in revenue and profit growth over
the coming years.
J Haynes
Chief Executive Officer
21 September 2016
Consolidated Income Statement
31 May 2016 31 May 2015
-----------------------------------
Restated
(1)
Exceptional Exceptional
Before items Before items Restated
exceptional (note exceptional (note (1)
items 2) Total items 2) Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Continuing
operations
Revenue 3 25,710 - 25,710 26,065 - 26,065
Cost of sales (10,201) (1,716) (11,917) (10,380) - (10,380)
------------ -----------
Gross profit 15,509 (1,716) 13,793 15,685 - 15,685
Other operating
income 82 - 82 44 - 44
Distribution
costs (7,008) (1,563) (8,571) (6,981) - (6,981)
Administrative
expenses (6,127) (1,143) (7,270) (5,698) (9,772) (15,470)
------------ -----------
Operating
profit/(loss) 2,456 (4,422) (1,966) 3,050 (9,772) (6,722)
Finance income 5 8 - 8 11 - 11
Finance costs 6 (73) - (73) (80) - (80)
Other finance
costs - retirement
benefits (518) - (518) (456) - (456)
Profit/(loss)
before taxation 1,873 (4,422) (2,549) 2,525 (9,772) (7,247)
Taxation 7 (723) 1,493 770 (891) 2,231 1,340
Profit/(loss)
for the period 1,150 (2,929) (1,779) 1,634 (7,541) (5,907)
============ =========== ============ ============ ========
Attributable
to :
Equity holders
of the Company 1,150 (2,929) (1,779) 1,621 (7,541) (5,920)
Non-controlling
interests - - - 13 - 13
1,150 (2,929) (1,779) 1,634 (7,541) (5,907)
============ ===========
Earnings/(loss) Pence Pence Pence Pence
per 20p share 8
From continuing
operations
- Basic 7.6 (11.8) 10.7 (39.2)
- Diluted 7.6 (11.8) 10.7 (39.2)
(1) See Note 1 Restatement of prior years
Consolidated Statement of Comprehensive Income
Restated (1)
Year Ended Year Ended
31 May 2016 31 May 2015
GBP'000 GBP'000
Loss for the period (1,779) (5,907)
Other comprehensive income
Items that will not be reclassified
to profit or loss in
subsequent periods:
Actuarial gains/(losses) on
retirement benefit obligation
- UK Scheme (727) (2,099)
- US Scheme 36 (1,433)
Deferred tax on retirement benefit
obligation
- UK Scheme 131 420
- US Scheme (14) 574
Deferred tax arising on change
in UK corporation tax rate (268) -
----------- ------------
(842) (2,538)
Items that will or maybe reclassified
to profit or loss in subsequent
periods:
Exchange differences on translation
of foreign operations 1,477 810
----------- ------------
Other comprehensive income recognised
directly in equity 635 (1,728)
Total comprehensive expense
for the financial period (1,144) (7,635)
=========== ============
Attributable to:
Equity holders of the Company (1,144) (7,648)
Non-controlling interests - 13
(1,144) (7,635)
=========== ============
(1) See Note 1 Restatement of prior years
Consolidated Balance Sheet
Restated
(1)
Year Ended Year Ended
31 May 2016 31 May 2015
Note GBP'000 GBP'000
Non-current assets
Property, plant and equipment 8,434 9,027
Intangible assets 22,381 20,165
Deferred tax assets 7,196 7,206
Total non-current assets 38,011 36,398
Current assets
Inventories 4,614 4,649
Trade and other receivables 7,499 7,929
Tax recoverable 926 -
Cash and short-term deposits 2,548 2,968
Total current assets 15,587 15,546
Total assets 53,598 51,944
Current liabilities
Trade and other payables (5,188) (4,376)
Current tax liabilities - (444)
Borrowings (2,163) (2,827)
Provisions (3,656) -
Total current liabilities (11,007) (7,647)
Non-current liabilities
Deferred consideration - (125)
Deferred tax liabilities (3,255) (3,248)
Retirement benefit obligation 11 (15,101) (14,348)
Total non-current liabilities (18,356) (17,721)
Total liabilities (29,363) (25,368)
Net assets 24,235 26,576
=========== ===========
Equity
Share capital 3,270 3,270
Share premium 638 638
Treasury shares (2,447) (2,447)
Retained earnings 18,199 21,947
Foreign currency translation
reserve 4,575 3,098
Capital and reserves
attributable to equity
shareholders 24,235 26,506
Equity attributable to
non-controlling interests - 70
Total equity 24,235 26,576
=========== ===========
(1) See Note 1 Restatement of prior years
Consolidated Statement of Changes in Equity
Foreign
currency Non-
Share Share Treasury translation Retained Sub controlling
capital premium shares reserve earnings total interests Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
May 2014 3,270 638 (2,447) 2,288 31,538 35,287 57 35,344
(Loss)/profit
for the period
restated - - - - (5,920) (5,920) 13 (5,907)
------- ------- -------- ----------- -------- ------- ----------- -------
Other comprehensive
income :
Currency translation
adjustments restated
(1) - - - 810 - 810 - 810
Actuarial losses
on defined benefit
plans (net of
tax) - - - - (2,538) (2,538) - (2,538)
------- ------- -------- ----------- -------- ------- ----------- -------
Total other comprehensive
income - - - 810 (2,538) (1,728) - (1,728)
------- ------- -------- ----------- -------- ------- ----------- -------
Total comprehensive
income - - - 810 (8,458) (7,648) 13 (7,635)
Dividends (note
9) - - - - (1,133) (1,133) - (1,133)
Balance at 31
May 2015 3,270 638 (2,447) 3,098 21,947 26,506 70 26,576
Loss for the period - - - - (1,779) (1,779) - (1,779)
------- ------- -------- ----------- -------- ------- ----------- -------
Other comprehensive
income :
Currency translation
adjustments - - - 1,477 - 1,477 - 1,477
Actuarial gains/(losses)
on defined benefit
plans (net of
tax) - - - - (842) (842) - (842)
------- ------- -------- ----------- -------- ------- ----------- -------
Total other comprehensive
income - - - 1,477 (842) 635 - 635
------- ------- -------- ----------- -------- ------- ----------- -------
Total comprehensive
income - - - 1,477 (2,621) (1,144) - (1,144)
Dividends (note
9) - - - - (1,133) (1,133) - (1,133)
Increase in subsidiary
shareholding 6 6 (70) (64)
Balance at 31
May 2016 3,270 638 (2,447) 4,575 18,199 24,235 - 24,235
------- ------- -------- ----------- -------- ------- ----------- -------
Consolidated Cash Flow Statement
Restated
(1)
Year Ended Year Ended
31 May 31 May
2016 2015
GBP'000 GBP'000
Cash flows from operating
activities - continuing
Loss after tax (1,779) (5,907)
Adjusted for :
Income tax expense (770) (1,340)
Interest payable and similar
charges 73 80
Interest receivable (8) (11)
Retirement benefits finance
costs 518 456
----------
Operating loss (1,966) (6,722)
Depreciation on property,
plant and equipment 866 774
Amortisation of intangible
assets 5,061 4,891
Impairment of intangible assets - 9,667
IAS 19 pensions current service
cost net of contributions
paid (501) (916)
Movement in provisions 3,656 -
(Gain)/loss on disposal of
property, plant and equipment (119) 9
----------
6,997 7,703
Changes in working capital
:
Decrease in inventories 149 391
Decrease in receivables 699 1,638
Increase/(decrease) in payables 604 (250)
Net cash generated from operations 8,449 9,482
Tax paid (692) (804)
Net cash generated by operating
activities 7,757 8,678
Investing activities
Acquisition costs - business
combinations (125) (200)
Proceeds on disposal of property,
plant and equipment 340 14
Purchases of property, plant
and equipment (264) (412)
Expenditure on product development (6,389) (5,567)
Increase in subsidiary shareholding (64) -
Interest received 8 11
Net cash used in investing
activities (6,494) (6,154)
Financing activities
Repayment of borrowings (1,292) (948)
Dividends paid (1,133) (1,133)
Interest paid (73) (80)
Net cash used in financing
activities (2,498) (2,161)
---------- ----------
Net (decrease)/increase in
cash and cash equivalents (1,235) 363
Cash and cash equivalents
at beginning of year 1,547 1,114
Effect of foreign exchange
rate changes 228 70
Cash and cash equivalents
at end of year (net funds) 540 1,547
========== ==========
(1) See Note 1 Restatement of prior years
Notes to the Results Announcement
1. Accounting policies
Basis of preparation
Haynes Publishing Group P.L.C. (the "Company") is a company
domiciled in the United Kingdom. The consolidated financial
statements of the Company for the year ended 31 May 2016 comprise
the Company and its subsidiaries (together referred to as the
"Group"). The Group financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union and the Companies Act 2006
applicable to companies reporting under IFRS. The Group financial
statements have been prepared on the historical cost basis except
for the treatment of certain financial instruments and are
presented in Sterling, with all values rounded to the nearest
thousand pounds (GBP'000) except as indicated otherwise.
The financial information contained in this report does not
constitute the Company's statutory accounts for the year ended 31
May 2016 or for the year ended 31 May 2015. Statutory accounts for
the years ended 31 May 2016 and 31 May 2015 have been reported on
by the Independent Auditors and the Independent Auditors' Report
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006. The statutory accounts for the year ended
31 May 2015 have been filed with the Registrar of Companies and the
statutory accounts for the year ended 31 May 2016 will be filed
with the Registrar of Companies following the AGM on 9 November
2016.
The Annual Report 2016 was approved by the Board of Directors
and authorised for issue on 21 September 2016 and signed on its
behalf by E Bell and J Haynes.
Basis of accounting
The accounting policies used to prepare this results
announcement are consistent with those applied in the 2015
consolidated financial statements. The International Accounting
Standards Board (IASB) and International Financial Reporting
Interpretations Committee (IFRIC) have issued standards, amendments
and interpretations with an effective date falling after the
Company's financial year-end.
These standards, amendments and interpretations will be adopted
in accordance with their effective dates and have not been adopted
in these financial statements. The directors are currently
assessing the impact of the new standards, amendments and
interpretations which are effective for periods beginning after 1
January 2016 and which have not been adopted early.
Restatement of prior years
In the year ended 31 May 2015 the Group recognised an impairment
loss of GBP9,667,000 in respect of its US intangible assets. As
certain of these assets are eligible for tax relief in the US over
time, it is appropriate to recognise the future tax benefit to the
Group by increasing the deferred tax asset in the balance sheet as
at 31 May 2015. Accordingly, the comparative Consolidated Income
Statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Changes in
Equity, Consolidated Cash Flow Statement and affected notes for 31
May 2015 have been restated. The impact of this restatement on the
31 May 2015 figures has been to reduce the tax charge in the
Consolidated Income Statement by GBP2,130,000, increase the
deferred tax asset in the Consolidated Balance Sheet by
GBP2,206,000 and increase the exchange gains on the translation of
foreign operations in the Consolidated Statement of Comprehensive
Income by GBP76,000.
Foreign exchange rates
The foreign exchange rates used in the financial statements to
consolidate the overseas subsidiaries are as follows (local
currency equivalent to GBP1):
Year-end rate Average rate
2016 2015 2016 2015
US dollar 1.45 1.53 1.49 1.58
Euro 1.31 1.39 1.35 1.31
Swedish krona 12.12 13.06 12.55 12.18
Australian dollar 2.01 2.00 2.04 1.89
2. Exceptional items
31 May 31 May
2016 2015
GBP000 GBP'000
Exceptional costs included in cost
of sales:
* Restructuring costs 1,716 -
Exceptional costs included in selling
and distribution expenses:
* Restructuring costs 1,563 -
Exceptional costs included in administrative
expenses:
* Restructuring costs 1,143 -
* Acquisition expenses - 105
- Impairment of intangible assets - 9,667
------ -------
4,422 9,772
====== =======
The restructuring costs have arisen following the implementation
of the global operational, cost and structure review undertaken
during the year and primarily relate to employee severance
packages, asset write-downs and a sales returns reserve.
Exceptional items are those items which warrant separate
disclosure by virtue of their scale and nature to enable a full
understanding of the Groups financial performance.
3. Revenue
31 May 31 May
2016 2015
GBP'000 GBP'000
Revenue by geographical destination
on continuing operations :
United Kingdom 4,918 4,741
Rest of Europe 7,971 6,700
United States of America 11,021 11,963
Australasia 1,093 1,859
Rest of World 707 802
------- -------
Total consolidated revenue 25,710 26,065
======= =======
4. Segmental analysis
For management and internal reporting purposes, the Group is
organised into two geographical operating segments:
- UK and Europe
- North America and Australia
The UK and European business with headquarters in Sparkford,
Somerset has subsidiaries in the Netherlands, Italy, Spain, Romania
and Germany. Its core business is the publication and supply of
automotive repair and technical information to the DIY and
professional automotive aftermarkets in both a print and digital
format.
The North American and Australian business with headquarters
near Los Angeles, California publishes DIY repair manuals for cars
and motorcycles in both a print and digital format. The business
publishes titles under the Haynes, Chilton and Clymer brands, in
both English and Spanish. It also has a branch operation in Sydney,
Australia which publishes similar products under both the Haynes
and Gregory's brands.
The above two operating segments are each organised and managed
separately and are treated as distinct operating and reportable
segments in line with the provisions of IFRS 8. The identification
of the two operating segments is based on the reports reviewed by
the chief operating decision maker, which form the basis for
operational decision making.
Analysis of geographic operating segments
North
UK America
& Europe & Australia Consolidated
Revenue and results : 2016 2016 2016
GBP'000 GBP'000 GBP'000
Segmental revenue
Total segmental revenue 13,508 14,236 27,744
Inter-segmental sales ([1]) (277) (1,757) (2,034)
---------- ------------- ---------------
Total external revenue 13,231 12,479 25,710
---------- ------------- ---------------
Segment result
Underlying segment operating
profit before exceptional
items and interest 1,471 340 1,811
Exceptional items ([5]) (268) (3,710) (3,978)
Interest receivable 1 7 8
Interest payable (38) (30) (68)
---------- ------------- ---------------
Segment profit/(loss) after
exceptional items and interest 1,166 (3,393) (2,227)
Unallocated head office
income less expenses (644)
---------------
Segment operating loss before
tax and adjustments (2,871)
Reconciliation to consolidated
profit before tax :
IAS 16 Property, plant and
equipment ([2]) 61
IAS 19 Employee benefits
([3]) 261
Consolidated profit before
tax (2,549)
Taxation ([4]) 770
---------------
Consolidated profit after
tax (1,779)
===============
[1] Inter-segment sales are charged at the prevailing market
rates.
[2] In the segmental reporting freehold buildings are
depreciated over 40 years - under IAS 16 the residual value of
buildings reflect the expected value at the end of their useful
life resulting in an adjustment to depreciation.
[3] In the segmental reporting, pension contributions are
expensed and the assets and liabilities of a defined benefit
pension scheme are held separately from the Group - under IAS 19
the Income Statement and Statement of Comprehensive Income are
adjusted to reflect the annual current service cost and actuarial
gains and losses arising on a defined benefit pension scheme and
the net surplus/(deficit) on the scheme is included in the balance
sheet.
[4] The charge to taxation relates to the consolidated Group.
Included within the charge to taxation is GBP257,000 which relates
to the UK & European operations and a credit of GBP960,000
which relates to the North American & Australian
operations.
[5] Details of the exceptional items are shown in note 2 of this
Results Announcement.
4. Segmental analysis (continued)
North Restated
UK America (1)
& Europe & Australia Consolidated
Revenue and results : 2015 2015 2015
GBP'000 GBP'000 GBP'000
Segmental revenue
Total segmental revenue 12,180 15,915 28,095
Inter-segmental sales ([1]) (268) (1,762) (2,030)
---------- ------------- ---------------
Total external revenue 11,912 14,153 26,065
---------- ------------- ---------------
Segment result
Underlying segment operating
profit before exceptional
items and interest 623 1,237 1,860
Exceptional items ([6]) (64) (9,708) (9,772)
Interest receivable 3 7 10
Interest payable (27) (52) (79)
---------- ------------- ---------------
Segment (loss)/profit after
exceptional items and interest 535 (8,516) (7,981)
Unallocated head office income
less expenses (80)
---------------
Segment operating profit
before tax and adjustments (8,061)
Reconciliation to consolidated
profit before tax :
IAS 16 Property, plant and
equipment ([2]) 124
IAS 19 Employee benefits
([3]) 466
IFRS 3 Business combinations
([4]) 224
---------------
Consolidated profit before
tax (7,247)
Taxation ([5]) 1,340
---------------
Consolidated profit after
tax (5,907)
===============
(1) See Note 1 Restatement of prior years
[1] Inter-segment sales are charged at the prevailing market
rates.
[2] In the segmental reporting freehold buildings are
depreciated over 40 years - under IAS 16 the residual value of
buildings reflect the expected value at the end of their useful
life resulting in an adjustment to depreciation.
[3] In the segmental reporting, pension contributions are
expensed and the assets and liabilities of a defined benefit
pension scheme are held separately from the Group - under IAS 19
the Income Statement and Statement of Comprehensive Income are
adjusted to reflect the annual current service cost and actuarial
gains and losses arising on a defined benefit pension scheme and
the net surplus/(deficit) on the scheme is included in the balance
sheet.
[4] In the segmental reporting goodwill is amortised over a
period not exceeding 20 years - under IFRS 3 goodwill is reviewed
annually for impairment but not amortised.
[5] The charge to taxation relates to the consolidated Group.
Included within the charge to taxation is GBP133,000 which relates
to the UK & European operations and GBP460,000 which relates to
the North American & Australian operations.
[6] Details of the exceptional items are shown in note 2 of this
Results Announcement.
5. Finance income
31 May 31 May
2016 2015
GBP'000 GBP'000
Interest receivable on bank deposits 8 11
======= =======
6. Finance costs
31 May 31 May
2016 2015
GBP'000 GBP'000
Interest payable on bank loans
and overdrafts 73 80
======= =======
7. Taxation
Restated
(1)
31 May 31 May
2016 2015
GBP'000 GBP'000
Analysis of charge during the period
:
Current tax
- UK corporation tax on profits - -
for the period
- Foreign tax (616) 394
- Adjustments in respect of prior
periods (117) 73
------- --------
(733) 467
Deferred tax
- Origination and reversal of
temporary differences (37) (1,807)
Total taxation in the Consolidated
Income Statement (770) (1,340)
======= ========
The effective rate of tax is higher than the standard rate of UK
tax due to mix of profits from overseas operations where the tax
rates are higher than the UK.
The effective tax rate for the financial year ended 31 May 2016
was 20%. In the Summer Budget 2015, the UK government announced
legislation setting the main rate of corporation tax at 19% for the
years beginning 1 April 2017, 2018 and 2019 and at 18% for the year
beginning 1 April 2020. In March 2016, the government announced a
further reduction to the main rate of corporation tax for the year
starting 1 April 2020 to 17%.The relevant UK deferred tax balances
have been re-measured accordingly.
8. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following :-
Restated
Before Before (1)
exceptional After exceptional After
items exceptional items exceptional
items items
2016 2016 2015 2015
GBP'000 GBP'000 GBP'000 GBP'000
Earnings :
Profit/(loss) after tax
attributable to equity
holders of the Company-
continuing operations 1,150 (1,779) 1,621 (5,290)
------------- ------------ ------------- ------------
No. No. No. No.
Number of shares :
Weighted average number
of shares ([a]) 15,111,540 15,111,540 15,111,540 15,111,540
------------- ------------ ------------- ------------
Basic earnings/(loss)
per share (pence) 7.6 (11.8) 10.7 (39.2)
============= ============ ============= ============
(1) See Note 1 Restatement of prior years
([a]) During the year the Company held 1,240,000 of its ordinary shares in treasury.
As at 31 May 2016 and 31 May 2015 there were no potentially
dilutive shares in issue on either of the Company's two classes of
shares. Accordingly, there is no difference between the weighted
average number of shares used in the basic and diluted earnings per
share calculations.
9. Dividends
31 May 31 May
2016 2015
GBP'000 GBP'000
Amounts recognised as distributions
to equity holders :
Final dividend for the year ended
31 May 2015 of 4.0p per share (2014:
4.0p per share) 604 604
Interim dividend for the year ended
31 May 2016 of 3.5p per share (2015:
3.5p per share) 529 529
1,133 1,133
=======
Proposed final dividend for the
year ended 31 May 2016 of 4.0p
per share (2015: 4.0p per share) 604 604
As at 31 May 2016, the Company holds 1,240,000 Ordinary shares
in treasury which represents 16.9% of the Ordinary share capital
and 7.6% of the Company's total share capital. The Company is not
able to vote on the treasury shares and the treasury shares carry
no right to receive any dividend or other distribution of assets
other than in relation to an issue of bonus shares.
The proposed final dividend is subject to approval by
shareholders at the Annual General Meeting to be held on 9 November
2016 and has not been included as a liability in these financial
statements.
Subject to final approval by shareholders the final dividend
will be paid on 17 November 2016 to shareholders on the register at
the close of business on 28 October 2016.
10. Analysis of the changes in net funds
As at Exchange As at
1 June 31 May
2015 Cash flow movements 2016
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank and in
hand 2,968 (648) 228 2,548
Bank overdrafts (1,421) (587) - (2,008)
1,547 (1,235) 228 540
======= ========= ========= =======
11. Retirement benefit obligation
The Group has a number of different retirement programmes in the
countries within which it operates. The principal pension
programmes are a contributory defined benefit scheme in the UK and
a non-contributory defined benefit plan in the US. The assets of
all schemes are held independently of the Group and its
subsidiaries.
As at 31 May 2016 the financial position of the two defined
benefit schemes have been updated by qualified independent
actuaries in line with the requirements of IAS 19 and the combined
movements on the two schemes are shown below :
31 May 31 May
2016 2015
GBP'000 GBP'000
Consolidated retirement benefit
obligation at beginning of period (14,348) (11,245)
Movement in the period :
- Total expenses charged in the
income statement (1,662) (1,114)
- Contributions paid 1,645 1,574
- Actuarial loss taken directly
to reserves (691) (3,532)
- Foreign currency exchange rate
movements (45) (31)
Consolidated retirement benefit
obligation at end of period (15,101) (14,348)
======== ========
12. Other information
The Directors Report and audited Report & Accounts for the
financial year ended 31 May 2016 will be posted to shareholders on
30 September 2016 and delivered to the Registrar of Companies
following the Annual General Meeting which will be held on 9
November 2016. Copies of the Directors' report and audited Report
& Accounts will be available from the Group Company Secretary,
Haynes Publishing Group P.L.C., Sparkford, Near Yeovil, Somerset
BA22 7JJ (telephone 01963 440635) after 30 September.
This results announcement is not being posted to shareholders,
but is available on the UK website
http://www.haynes.co.uk/investor.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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