Many readers will associate Haynes Publishing (HYNS) with Haynes manuals – the much-loved vehicle maintenance manuals that sit on garage shelves the world over. However, in recent years, the digital side of the business has grown and is now the primary source of revenues – accounting for just over half of sales the six months to the end of November.
Investment is fuelling growth in the digital business, with the group spending £4.4m on content, datasets and delivery platforms during the period, an increase of 7 per cent on the same time last year.
Sales in the UK and European divisions are up 15 per cent, mainly driven by the performance of HaynesPro, which provides technical information to professionals in the automotive aftermarket. The HaynesPro team is now working with the Australian division to launch a data module there.
Investors looking at the statutory earnings numbers are bound to be concerned, but the sharp drop in profits and EPS stemmed primarily from the estimated impact of changes to guaranteed minimum pensions – adjusted pre-tax profits and EPS were up 23 and 32 per cent, respectively.
Bloomberg consensus forecasts point to EPS of 16.4p for the year to May 2019 (from 13.2p in 2018).
| HAYNES PUBLISHING (HYNS) | ||||
| ORD PRICE: | 188p | MARKET VALUE*: | £28.3m | |
| TOUCH: | 185-190p | 12-MONTH HIGH: | 246p | LOW: 159p |
| DIVIDEND YIELD: | 4.0% | PE RATIO: | 38 | |
| NET ASSET VALUE: | 174p** | NET CASH: | £2.6m | |
| Half-year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 (restated) | 17.1 | 1.1 | 5.30 | 3.50 |
| 2018 | 18.3 | 0.2 | 0.30 | 3.50 |
| % change | +7 | -84 | -94 | |
| Ex-div: | 21 Mar | |||
| Payment: | 17 Apr | |||
*'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 **Includes intangible assets of £33m, or 222p a share | ||||
