Haynes’ (HYNS), a family-controlled provider of technical car information for consumers and professional mechanics, had already previewed the highlights of its preliminary results in a June trading update. The official numbers suggest its digital transformation has continued, with revenue from digital products rising 42 per cent to £16.9m – constituting 50 per cent of the top line, versus 40 per cent a year earlier.
The UK and Ireland enjoyed a 28 per cent mark-up in revenues to £22.7m – driven by HaynesPro, the Europe-wide professional automotive data business. And the recent acquisitions of E3 Technical and OATS – respectively a supplier of vehicle registration look-up services and a car lubricants business – contributed £3.3m in total.
While OATS’ sales are recognised in the UK, it has a global customer base – potentially offering broader opportunities for Haynes’ US business. This allays some concerns about the consumer business in North America and Australia, where there have been ongoing retail challenges for print manuals – contributing to an 8 per cent dip in sales to £11.1m.
Panmure Gordon expects adjusted pre-tax profits of £3.3m and EPS of 16.4p for the year to May 2019 (£2.9m and 13.1p in FY2018).
| HAYNES (HYNS) | ||||
| ORD PRICE: | 205p | MARKET VALUE*: | £31m | |
| TOUCH: | 202-208p | 12-MONTH HIGH: | 246p | LOW: 176p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 165p** | NET CASH: | £2.5m | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 29.3 | 2.0 | 7.4 | 7.5 |
| 2015 | 26.1 | -7.2 | -39.2 | 7.5 |
| 2016 | 25.7 | -2.5 | -11.8 | 7.5 |
| 2017 | 29.8 | 2.7 | 9.1 | 7.5 |
| 2018 | 33.8 | 3.6 | 9.9 | 7.5 |
| % change | +13 | +34 | +9 | - |
| Ex-div: | 25 Oct | |||
| Payment: | 15 Nov | |||
*'A' class shares, held by directors, comprise 60 per cent of Haynes' market value. These can be transferred to holders' family members, or can be converted into ordinary shares on a one-for-one basis in some circumstances | ||||
