TIDMHYNS
RNS Number : 3450B
Haynes Publishing Group PLC
30 January 2020
HAYNES PUBLISHING GROUP P.L.C.
INTERIM RESULTS FOR THE 6 MONTHSED 30 NOVEMBER 2019
Haynes Publishing Group P.L.C. ("Haynes" or "the Group"), a
leading supplier of content, data and innovative workflow solutions
for the automotive industry and motorists, today announces its
results for the 6 months ended 30 November 2019.
Business and Financial Highlights
Adjusted Adjusted Statutory Statutory
6 months 6 months 6 months 6 months
to to Change to to Change
30 Nov 30 Nov YoY 30 Nov 30 Nov YoY
2019 2018 (Year-on-Year) 2019 2018 (Year-on-Year)
Group revenue GBP19.0m GBP18.3m +4%
---------- ---------- ---------------- ---------- ---------- ----------------
EBITDA GBP7.3m GBP6.3m +16% GBP6.6m GBP5.2m +27%
---------- ---------- ---------------- ---------- ---------- ----------------
Group operating profit GBP2.6m GBP1.9m +37% GBP1.5m GBP0.5m +200%
---------- ---------- ---------------- ---------- ---------- ----------------
Group profit before
tax GBP2.3m GBP1.6m +44% GBP1.2m GBP0.2m +500%
---------- ---------- ---------------- ---------- ---------- ----------------
Basic earnings per
share 11.6p 8.2p +41% 6.0p 0.3p +1900%
---------- ---------- ---------------- ---------- ---------- ----------------
Interim dividend - 3.5p (100%)
---------- ---------- ---------------- ---------- ---------- ----------------
Operating cash flow
after tax GBP6.1m GBP5.2m +17%
---------- ---------- ---------------- ---------- ---------- ----------------
Net cash GBP5.2m GBP2.6m +100%
---------- ---------- ---------------- ---------- ---------- ----------------
-- Headline revenue growth (all organic); up 4% on last year at
GBP19.0 million (2018: GBP18.3 million)
-- YoY digital revenue up 18% at GBP11.4 million (2018: GBP9.7
million), representing 60% of overall Group revenue (2018: 53%)
-- Adjusted EBITDA up 16% to GBP7.3 million (2018: GBP6.3 million)
-- Operating profit from trading segments up 13% at GBP4.5 million (2018: GBP4.0 million):
- Professional adjusted operating profit up 31% at GBP3.8
million (2018: GBP2.9 million) driven by higher revenue, up 17%
- Consumer adjusted operating profit down 36% at GBP0.7 million
(2018: GBP1.1 million) impacted by lower US & Australian print
manual revenues. Revenue from Consumer digital channels up 46%
YoY
-- GBP4.4 million investment in new content, datasets and
delivery platforms (2018: GBP4.4 million)
-- Strong cash generation with Group operating cash flows after
tax up 17% at GBP6.1 million (2018: GBP5.2 million)
Eddie Bell, Chairman of Haynes Group, commented:
"This has been another strong period of underlying revenue and
profit growth for Haynes, which has been driven by new contract
gains and key partner renewals.
"We have a healthy pipeline of development projects across both
our professional and consumer businesses and with the proportion of
revenue we derive from our digital channels increasing, the Haynes
Group remains well placed to deliver sustainable revenue and profit
growth."
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
James Stearns
Media Contact: New Century Media +44 20 7930 8033
Catherine Hems
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
INTERIM STATEMENT
Business overview
I am pleased to report another strong period of revenue and
profit growth for the Group. New contract gains and key partner
renewals have helped increase headline revenue growth by 4%.
The proportion of revenue we now derive from our digital product
ranges increased to 60% (2018: 53%), the vast majority of which is
contracted and recurring.
This revenue growth, which was all organically driven, helped
increase adjusted EBITDA by 16% and adjusted profit before tax by
44%. Net cash flows generated from operating activities increased
by 17% to GBP6.1 million (2018: GBP5.2 million) pushing net cash at
30 November 2019 up 6% to GBP5.2 million (31 May 2019: GBP4.9
million).
During the period, capitalised development expenditure, when
measured as a percentage of overall Group revenue, lowered to 23.5%
(2018: 23.9%) which was also down on the 23.9% we reported for our
full year ended 31 May 2019. This metric helps provide comfort that
the investment we are making in our professional and consumer
businesses continues to drive top line growth.
Operational review
Professional
Revenue from our Professional operations ended the six month
period up 17% at GBP11.0 million (2018: GBP9.4 million). On a
constant currency basis, HaynesPro revenue was up 21% and OATS
revenue was up 18%.
Expanding our international data sets and product innovation are
key areas of our internal investment programmes. Since adding a
second office in Bucharest, in March 2019, we have extended our
resource capabilities in our professional business. This has helped
accelerate key projects and deliver benefits to our growing
customer base. An example has been the development of our
Australian WorkshopData(TM) module, launched in the Spring of 2019
and where, towards the end of the period, we won a prestigious new
contract with the Victorian Automobile Chamber of Commerce
(VACC).
During the first six months of 2019/20, the OATS team have
continued to expand their international data sets and are
progressively establishing OATS as a global market leading oil and
lubricant data provider. Underpinned by the Group's ongoing
investment programmes, OATS delivered double-digit revenue growth
during the period, and in June 2019 set up OATS LLC to support,
build and expand our growing customer base in the important North
American market.
The higher revenue in HaynesPro and OATS drove adjusted
operating profit in our Professional segment up 31% to GBP3.8
million (2018: GBP2.9 million). After Group licence fees, adjusting
items and finance costs, Professional segment profit before tax was
up 42% at GBP2.7 million (2018: GBP1.9 million).
Consumer
Revenue from the Group's consumer digital channels, which
includes sales through haynes.com, continued strong year-on-year
growth, up 46% during the six months to 30 November 2019. Over this
same timeframe, global subscribers to the Haynes online manuals
increased by 6% to over 70,000.
In the US, year-on-year local currency revenue ended the period
18% lower as we continue to experience headwinds for sales of our
automotive print manuals, primarily through our traditional bricks
and mortar retail customers, where range and inventory turns remain
a key focus. Following the recruitment of a new national account
manager, with recent and relevant online retail experience, we have
strengthened the sales team in this important territory and we are
working closely with our key partners to help address the decline.
Discussions with a new major US retailer, whilst still at an early
stage, give management encouragement that through a combination of
our print and digital capabilities we can address the decline in
revenue in our North American markets, as indeed we have seen in
our domestic UK market, where automotive revenues ended the period
1% ahead of the prior year.
Invoiced sales from our brand extension publishing titles were
up 5% against the previous year, boosted by strong backlist and
higher export sales. The strength of the Haynes brand continues to
open new opportunities for the Group, as demonstrated by a recently
signed three-year deal to publish the official Formula-E books in
our Haynes manual style.
In light of the lower US print manual sales, overall Consumer
segment revenue ended the period down 11% at GBP7.9 million (2018:
GBP8.9 million). The impact of the lower print manual revenue left
overall Consumer segment adjusted operating profit down 36% at
GBP0.7m (2018: GBP1.1 million).
On 15 November 2019, the Board announced it was embarking on a
formal sale process to sell the entire issued share capital of
Haynes Publishing Group P.L.C. and appointed Europa Partners as
financial adviser to conduct the formal sale process. The process
is continuing and an announcement will be made in due course.
Interim dividend
In light of the formal sale process, the Board is not declaring
an interim dividend.
Future outlook
The combined skillsets and energy of the people at Haynes allow
us to create innovative and dynamic products and solutions, and I
would like to thank them all for their continued hard work,
commitment and loyalty.
The Group has a strong pipeline of development projects across
both its operating segments. These projects will not only help
extend the Group's product ranges but will also enable the Group to
target new geographical territories and establish VESA, its
professional automotive electronics database, as a global
step-by-step diagnostic platform.
With the proportion of Group revenue which is contracted,
visible, recurring and delivered via digital channels increasing,
the Board is confident that the Group remains on track to deliver
strong year-on-year revenue and profit growth, and create value for
all our stakeholders.
J Haynes
Chief Executive Officer
29 January 2020
Financial review
Overall Group revenue ended the six-month period to 30 November
2019 up 4% against the prior year at GBP19.0 million (2018: GBP18.3
million) driven entirely by underlying organic growth. The impact
of net foreign exchange on overall Group revenues was minimal at
GBP0.1 million with the average Euro exchange rate ending the
period marginally up on last year at EUR1.13 (2018: EUR1.12) and a
weakening in Sterling against the US Dollar which left the average
exchange rate during the period lower at $1.25 (2018: $1.30).
Overall Group gross profit increased by 9% to GBP11.9 million
(2018: GBP10.9 million). The Group's gross margin increased by 280
basis points to 62.5% (2018: 59.7%), as revenue growth more than
offset the higher amortisation charge from the Group's investment
in new content, data and delivery platforms.
Adjusted Group overheads increased by 3% during the period to
GBP9.3 million (2018: GBP9.0 million).
Adjusting items include GBP0.7 million contingent costs
associated with the formal sale process and GBP0.3 million of
amortisation on acquired intangibles.
Group operating profit before tax and adjusting items was up 37%
to GBP2.6 million (2018: GBP1.9 million) boosted by the higher
Group revenue. Statutory Group operating profit was GBP1.5 million
(2018: GBP0.5 million).
Net finance costs, which primarily relate to the Group's defined
benefit retirement schemes, ended the period in line with the prior
year at GBP0.3 million (2018: GBP0.3 million).
Group profit before tax and adjusting items ended the period up
44% at GBP2.3 million (2018: GBP1.6 million). Statutory Group
profit before tax was GBP1.2 million (2018: GBP0.2 million).
The Group's adjusted effective tax rate for the period was 22%
(2018: 25%). This is marginally higher than the 21% effective rate
for the full year to 31 May 2019 due to the higher mix of profits
from the Group's European entities which incur a higher prevailing
tax rate.
Earnings per share before adjusting items increased to 11.6
pence (2018: 8.2 pence) reflecting the growth in underlying
profits. Statutory earnings per share were 6.0 pence (2018: 0.3
pence).
Balance sheet and cash flow
Tangible and intangible investment during the six months to 30
November 2019 was maintained at a similar level to last year.
Expenditure on new content, platforms and services for its
professional and consumer product ranges was GBP4.4 million (2018:
GBP4.4 million) and on tangible fixed assets GBP0.2 million (2018:
GBP0.2 million).
On 17 December 2019, the Group acquired the freehold land and
buildings of the Old Creamery, Sparkford for GBP0.3 million and
simultaneously exchanged contracts on the whole Sparkford site,
including the Old Creamery for a sale price of GBP2.5 million.
Completion is due to take place on or before 17 June 2021.
The net IAS 19 pensions deficit on the Group's two defined
benefit retirement schemes as at 30 November 2019 was 5% higher at
GBP25.1 million (31 May 2019: GBP23.8 million). A lower UK discount
rate assumption was a key contributory factor in the combined
scheme liabilities increasing to GBP58.9 million (31 May 2019:
GBP57.9 million). The value of the combined scheme assets ended the
period at GBP33.8 million (31 May 2019: GBP34.1 million).
Net cash generated from operations increased by 17% during the
period to GBP6.1 million (2018: GBP5.2 million) driven by the
higher Group operating profits.
The Group's net cash position at 30 November 2019 was up 6% at
GBP5.2 million (31 May 2019: GBP4.9 million).
IFRS 16 'Leases', a new standard was adopted during the period
using the modified retrospective approach. The transition resulted
in the Group reporting a Right of Use asset of GBP2.2 million and
corresponding lease liability being recognised on 1 June 2019.
Adoption under this transition method does not require the Balance
Sheet for previous periods to be restated. The lease liabilities
have been recorded as borrowings in the Balance Sheet but have not
been included in the calculation of cash and cash equivalents. Due
to the immaterial impact the new standard has had on the
Consolidated Income Statement, comparatives have not been adjusted
when measuring year-on-year performance.
Responsibility statement
Pages 26 and 27 of the Annual Report 2019 provide details of the
serving Executive and Non-Executive Directors. A statement of the
Directors' responsibilities is contained on page 47 of the Annual
Report 2019. A copy of the Annual Report 2019 can be found on the
Haynes website www.haynes.com/investor.
The Board confirms that, to the best of its knowledge, the
condensed set of financial statements gives a true and fair view of
the assets and liabilities, financial position and profit of the
Group and has been prepared in accordance with IAS 34 'Interim
Financial Reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules as issued by the
Financial Conduct Authority, namely:
-- DTR 4.2.7: An indication of important events that have
occurred during the first six months of the financial year, and
their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the
remaining six months of the financial year (refer to note 17).
-- DTR 4.2.8: Details of related party transactions that have
taken place in the first six months of the current financial year
and that have materially affected the financial position or
performance of the enterprise during that period. Together with any
changes in the related parties' transactions described in the last
annual report, that could have a material effect on the enterprise
in the first six months of the current financial year.
By order of the Board
Richard Barker
Group Finance Director
29 January 2020
INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHSED 30 NOVEMBER
2019
Consolidated Income Statement
Unaudited Unaudited
6 Months to 30 Nov 6 Months to 30 Nov
2019 2018
Adjusting Adjusting
items items
(note (note Statutory
Adjusted 4) Statutory Adjusted 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Continuing operations
Revenue (note 2) 18,960 - 18,960 18,270 - 18,270
Cost of sales (7,103) - (7,103) (7,367) - (7,367)
--------- -----------
Gross profit 11,857 - 11,857 10,903 - 10,903
Other income 26 - 26 23 - 23
Distribution costs (4,198) - (4,198) (4,253) - (4,253)
Administrative expenses (5,112) (1,030) (6,142) (4,733) (1,459) (6,192)
Operating profit/(loss) 2,573 (1,030) 1,543 1,940 (1,459) 481
Finance income 3 - 3 2 - 2
Finance costs (33) - (33) (26) - (26)
Other finance costs - retirement
benefits (291) - (291) (269) - (269)
-------- --------- -----------
Profit/(loss) before taxation 2,252 (1,030) 1,222 1,647 (1,459) 188
Taxation (note 5) (495) 186 (309) (412) 263 (149)
Profit/(loss) for the period 1,757 (844) 913 1,235 (1,196) 39
======== ========= =========== ======== ========= ===========
Earnings per 20p share - (note
6) Pence Pence Pence Pence
From continuing operations
- Basic 11.6 6.0 8.2 0.3
- Diluted 10.8 5.6 8.0 0.3
-------- --------- ----------- -------- --------- -----------
Consolidated Statement of Comprehensive Income
Unaudited Unaudited
6 months 6 months
to to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Profit for the period 913 39
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 (1,558) 777
- US Scheme 124 (89)
Deferred tax on retirement benefit obligation
- UK Scheme 265 (133)
- US Scheme (27) 20
(1,196) 575
Items that will or may be reclassified to profit
or loss in subsequent periods:
Exchange differences on translation of foreign operations (850) 525
Other comprehensive (expense) / income (2,046) 1,100
Total comprehensive (expense) / income (1,133) 1,139
=========== ===========
Consolidated Balance Sheet
Unaudited Unaudited Audited
30 Nov 2019 30 Nov 2018 31 May 2019
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment (note 11) 3,234 1,439 1,378
Intangible assets (note 12) 32,757 33,489 33,502
Deferred tax assets 6,444 5,852 6,301
Total non-current assets 42,435 40,780 41,181
Current assets
Inventories 2,613 2,729 2,599
Trade and other receivables 9,734 9,940 9,296
Tax recoverable 198 441 79
Cash and cash equivalents (note 8) 5,212 5,089 4,871
17,757 18,199 16,845
Assets held for sale (note 13) 2,135 2,195 2,135
Total current assets 19,892 20,394 18,980
----------- ----------- -----------
Total assets 62,327 61,174 60,161
----------- ----------- -----------
Current liabilities
Trade and other payables (12,012) (9,539) (10,257)
Borrowings (590) (2,490) -
Provisions - (261) -
Total current liabilities (12,602) (12,290) (10,257)
Non-current liabilities
Deferred tax liabilities (3,041) (3,388) (3,026)
Borrowings (1,357) - -
Retirement benefit obligation (note 9) (25,083) (19,266) (23,845)
Total non-current liabilities (29,481) (22,654) (26,871)
Total liabilities (42,083) (34,944) (37,128)
----------- ----------- -----------
Net assets 20,244 26,230 23,033
=========== =========== ===========
Equity
Share capital 3,270 3,270 3,270
Share premium 638 638 638
Treasury shares (2,425) (2,425) (2,425)
Retained earnings 11,360 16,499 13,299
Foreign currency translation reserve 7,401 8,248 8,251
----------- ----------- -----------
Total equity 20,244 26,230 23,033
=========== =========== ===========
Consolidated Statement of Changes in Equity
Foreign
currency
Share Share Treasury translation Retained
capital premium shares reserve earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Unaudited
Current interim period :
Balance at 1 June 2019 3,270 638 (2,425) 8,251 13,299 23,033
Profit for the period - - - - 913 913
Other comprehensive income/(expense):
Currency translation adjustments - - - (850) - (850)
Actuarial gains/(losses)
on defined benefit plans
(net of tax) - - - - (1,196) (1,196)
------- ------- -------- ----------- -------- -------
Total other comprehensive
income/(expense) - - - (850) (1,196) (2,046)
------- ------- -------- ----------- -------- -------
Total comprehensive income/(expense) - - - (850) (283) (1,133)
Fair value of share-based
payments - - - - (1,051) (1,051)
Dividends (note 7) - - - - (605) (605)
------- ------- -------- ----------- -------- -------
Balance at 30 November 2019 3,270 638 (2,425) 7,401 11,360 20,244
----------------------------------------- ------- ------- -------- ----------- -------- -------
Unaudited
Prior interim period :
Balance at 1 June 2018 3,270 638 (2,447) 7,723 16,388 25,572
Profit for the period - - - - 39 39
Other comprehensive income:
Currency translation adjustments - - - 525 - 525
Actuarial gains/(losses)
on defined benefit plans
(net of tax) - - - - 575 575
------- ------- -------- ----------- -------- -------
Total other comprehensive
income - - - 525 575 1,100
------- ------- -------- ----------- -------- -------
Total comprehensive income - - - 525 614 1,139
Performance share plan - - - - 102 102
Sale of treasury shares - - 22 - - 22
Dividends (note 7) - - - - (605) (605)
------- ------- -------- ----------- -------- -------
Balance at 30 November 2018 3,270 638 (2,425) 8,248 16,499 26,230
----------------------------------------- ------- ------- -------- ----------- -------- -------
Consolidated Cash Flow Statement
Unaudited Unaudited
6 months 6 months
to to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Cash flows from operating activities
Profit after tax 913 39
Adjusted for :
Income tax expense 309 149
Interest payable and similar charges 33 26
Interest receivable (3) (2)
Retirement benefit finance cost 291 269
-------------- --------------
Operating profit 1,543 481
Depreciation on property, plant and equipment 490 238
Amortisation of non-acquired intangible assets 4,247 4,156
Adjusting items 1,030 1,459
-------------- --------------
EBITDA before adjusting items 7,310 6,334
Performance share plan - 102
IAS 19 pensions current service cost net of contributions
paid (457) (245)
Loss on disposal of property, plant and equipment - 35
Operating cashflows before working capital movements 6,853 6,226
Changes in working capital :
(Increase)/decrease in inventories (52) 446
Increase in receivables (603) (551)
Increase/(decrease) in payables 96 (370)
Movement in provisions - (84)
Net cash generated from operations 6,294 5,667
Tax paid (207) (516)
--------------
Net cash generated by operating activities 6,087 5,151
--------------
Investing activities
Disposal proceeds on property, plant and equipment - 3
Purchases of property, plant and equipment (162) (162)
Expenditure on development costs included in intangible
assets (4,447) (4,362)
Interest received 3 2
--------------
Net cash used in investing activities (4,606) (4,519)
--------------
Financing activities
Dividends paid (605) (605)
Interest paid (33) (26)
Payment of lease liabilities (277) -
Proceeds from sale of treasury shares - 22
Net cash used in financing activities (915) (609)
Net increase in cash and cash equivalents 566 23
Cash and cash equivalents at beginning of period 4,871 2,533
Effect of foreign exchange rate changes (225) 43
Cash and cash equivalents at end of period (note 8) 5,212 2,599
============== ==============
Notes to the Interim Results
1. Accounting policies - Basis of preparation
a) General information
The interim financial statements for the six months ended 30
November 2019 and 30 November 2018 and for the twelve months ended
31 May 2019 do not constitute statutory accounts for the purposes
of Section 434 of the Companies Act 2006. The Annual Report and
Financial Statements for the year ended 31 May 2019 have been filed
with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Financial Statements for the year ended 31
May 2019 was unqualified, did not draw attention to any matters by
way of emphasis, and did not contain a statement under sections
498(2) or 498(3) of the Companies Act 2006. These 30 November 2019
statements were approved by the Board of Directors on 29 January
2020 and although not audited are subject to a review by the
Group's auditors.
This financial information has been prepared in accordance with
the Disclosure and Transparency rules of the Financial Conduct
Authority and in compliance with International Accounting Standard
(IAS) 34 'Interim Financial Reporting (Revised)' as endorsed by the
European Union.
The Haynes Publishing Group P.L.C. is a Public Limited Company
incorporated in England & Wales and is listed on the London
Stock Exchange. The principal activities of the Group are described
in note 3 of this interim statement.
b) Estimates and judgements
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
for the year ended 31 May 2019, with the exception of IFRS 16 -
Leases (as detailed below), judgement over the contingent liability
included in note 16 and changes in estimates that are required in
determining the provision for income taxes due to tax rate changes
in the territories that the Group operates.
These interim financial statements have been prepared on a going
concern basis as the Directors have a reasonable expectation that
the Group has adequate resources to continue to operate for a
period of at least 12 months from the date of this report. In
forming this view, the Directors have considered the Group's recent
trading performance and its future outlook, its cash flow forecasts
for the next 12 months and any known financial commitments.
c) New standards and interpretations adopted in the current period
The interim financial statements have been prepared on a
consistent basis with the accounting policies set out in the Annual
Report 2019 and should be read in conjunction with that Annual
Report. Two new standards adopted in the current period include;
the adjustment for IFRS 16 - Leases, a new accounting standard
outlined below; and, IFRS 2 - Share based payments where for
cash-settled share-based payments, a liability equal to the portion
of the services received is recognised at its current fair value at
each balance sheet date. The Group's annual financial statements
are prepared in accordance with International Financial Reporting
Standards (IFRS's) and IFRS Interpretations Committee (IFRSIC)
interpretations as adopted by the European Union. The Annual Report
2019 provides details of other new standards, amendments and
interpretations which come into effect for the first time during
the current financial year. The new standards, amendments to
standards and interpretations which apply to the Group for the
first time in this financial year have been reviewed by management.
With the exception of IFRS 16 - Leases, outlined below, management
do not believe they will have a material impact on the Group's
financial statements for the financial year ended 31 May 2020.
- IFRS 16 - Leases
The Group adopted IFRS 16 on 1 June 2019 which requires
operating leases to be treated the same as finance leases with the
exception of some short-term leases and leases of low value assets.
This results in previously recognised operating leases being
treated as right of use assets and the corresponding finance lease
liabilities being recorded on the Consolidated Balance Sheet. The
right of use asset is initially measured at cost and subsequently
measured at cost less accumulated depreciation and impairment
losses. The lease liability is initially measured at the present
value of the lease payments that are not paid at that date.
Subsequently, the lease liability is adjusted for interest and
lease payments. Under IFRS 16, the classification of cash flows has
been amended as the lease payments will be split into a principal
and interest portion and presented as financing and operating cash
flows respectively. The Group has applied the modified
retrospective transition method, and consequently, comparative
information is not restated.
1. Accounting policies - Basis of preparation (continued)
Within opening balances as at 1 June 2019, the Group has
recognised GBP2,153,000 of continuing right-of-use assets with the
same corresponding continuing IFRS 16 lease liability recognised,
representing the obligation to make lease payments. The Group has
made no adjustments to reflect prepayments and rent free periods
due to the nature of its leases.
The transition impact on the closing 2019 Consolidated Balance
Sheet is shown in the table below:
31 May 2019 IFRS 16 Impact 1 June 2019
Impact of IFRS 16 transition on
2019 Consolidated Balance Sheet GBP000 GBP000 GBP000
Property, plant and equipment 1,378 2,153 3,531
Current borrowings - (583) (583)
Non-current borrowings - (1,570) (1,570)
Other 21,655 - 21,655
Net assets 23,033 - 23,033
=========== ============== ===========
For each lease, the lease term has been calculated as the
non-cancellable period of the lease contract. The Group has elected
to use the following practical expedients allowed by the
standard:
- the exclusion of initial direct costs from the measurement of the right-of-use asset;
- IFRS 16 has only been applied to contracts that were
previously classified as operating leases; and
- lease payments for contracts with a duration of 12 months or
less and contracts for which the underlying asset is of a low value
have continued to be expensed through the Consolidate Income
Statement.
Where the interest rate implicit in the lease cannot be readily
determined, the Group's incremental borrowing rate will be used.
The Group's incremental borrowing rate has been set at 2.25% being
the interest rate on the Group's primary overdraft facility. 2.25%
was within the range of 10 year government bond yields across the
territories where the Group leases right of use assets.
For the period to 30 November 2019, the impact on profit before
tax from continuing operations (before adjusting items) compared to
the prior year is a reduction of GBP24,000 due to the front loading
of interest costs.
The reconciliation from operating commitments disclosed under
IAS 17 at 31 May 2019 to the lease liability recognised on the
Consolidated Balance Sheet at 1 June 2019 is as follows:
1 June 2019
GBP000
Operating lease commitment at 31 May 2019 as disclosed in
the Group's 2019 Annual Report 2,506
Discounted using incremental borrowing rate at 1 June 2019 (138)
Deduction from practical expedient for leases with less than
12 months of lease term at transition (109)
Deduction for changes in assumptions between IAS 17 and IFRS
16 disclosure (106)
Lease liability recognised at 1 June 2019 under IFRS 16 2,153
===========
d) New standards and interpretations not adopted with an effective date after the period
Management are currently assessing the impact of the new
standards, interpretations and amendments which are effective for
accounting periods beginning on or after 1 June 2020 and which have
not been adopted early. At this stage, management believe the
application of the new standards and amendments will not have any
material impact on the disclosures, net assets or results of the
Group.
2. Revenue
6 months to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Revenue by geographical destination on continuing
operations :
United Kingdom 5,257 5,626
Rest of Europe 8,249 6,589
United States of America 4,731 5,200
Australasia 447 616
Rest of World 276 239
----------- -----------
Total consolidated revenue * 18,960 18,270
=========== ===========
* Analysed as follows :
Revenue from sales of digital data 11,442 9,726
Revenue from royalty and licensing arrangements 239 200
----------- -----------
Total contracted revenue 11,681 9,926
Revenue from sales of printed products 7,279 8,344
18,960 18,270
=========== ===========
3. Segmental analysis
The segmental analysis for the 6 months ended 30 November 2019
has been prepared in line with the new reporting basis as disclosed
in the 2019 Annual Report. The comparative figures for the 6 months
ended 30 November 2018 have been restated accordingly. A summary of
the new segmental reporting basis is included below:
The Group has two primary operating segments:
- Professional
- Consumer
The Professional segment has headquarters in The Netherlands and
has offices in the UK, Germany, Italy, Spain, France, Romania and
the US, operating under the HaynesPro and OATS brands. HaynesPro
provide technical data and intelligent work-flow solutions for the
automotive industry including parts distributors, parts
manufacturers, diagnostic equipment manufacturers, fast fit &
auto repair centres and fleet operators. In the UK, HaynesPro is an
official DVLA licence holder providing number plate and vehicle
registration look-up services for a range of organisations in the
automotive sector where highly accurate and granular reporting are
an essential work tool. OATS is a leading source of lubricant
recommendations for the oil and lubes industry, with partners in
over 90 countries including some of the world's major global
petrochemical companies.
The Consumer segment which has headquarters in Sparkford,
Somerset, as well as offices in the US and Australia, originates
and delivers automotive repair and maintenance information to
motorists and motoring enthusiasts in both a print and digital
format. Through Haynes AllAccess, the businesses also supply a full
range of online vehicle and motorcycle manuals to professional
mechanics, automotive retailers, libraries and the education
sector. The UK business also publishes a range of practical brand
extension titles covering a wide variety of subjects styled on the
iconic Haynes Manual as well as a range of light-hearted factual
titles published under the Bluffers branding.
The two operating segments above 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 upon the reports reviewed by
the chief operating decision maker, which form the basis for
operational decision making. The segments reflect management of the
operating units and the channels through which the Group's content
is delivered, as this is deemed to be more relevant for reporting
purposes. Inter-segmental revenue is charged at the prevailing
market rates in a manner similar to transactions with third
parties.
The adjustments below have been made in the segmental tables
which follow to reconcile the internal reports as reviewed by the
chief operating decision maker to the financial information as
reported under IFRS in the Group Financial Statements:
-- In the segmental reporting an adjustment is included under
IFRS 16 "Leases" relating to the period and is included in the
appropriate segment. No estimate is included in the internal
reports reviewed by the chief operating decision maker.
-- The unallocated head office assets primarily relate to
freehold property, intangible assets, deferred tax assets and
amounts owed by subsidiary undertakings.
-- The unallocated head office liabilities primarily relate to
the deficit on the UK's multi-employer defined benefit pension
scheme and tax liabilities.
3. Segmental analysis (continued)
Analysis of geographic operating segments:
Revenue and results: Professional Consumer Unallocated Consolidated
6 months to 6 months to 6 months to 6 months to
30 Nov 2019 30 Nov 2019 30 Nov 2019 30 Nov 2019
GBP000 GBP000 GBP000 GBP000
Segment revenue
Total segmental revenue 11,129 8,192 - 19,321
Inter-segment revenue (92) (269) - (361)
------------ ----------- ----------- ------------
Total external revenue 11,037 7,923 - 18,960
------------ ----------- ----------- ------------
Segment result
Adjusted EBITDA 6,868 2,211 (1,769) 7,310
Segment amortisation & depreciation (3,063) (1,493) (181) (4,737)
------------ ----------- ----------- ------------
Adjusted operating profit/(loss) 3,805 718 (1,950) 2,573
Intra group licence fee (930) (407) 1,337 -
Adjusting items (note 4) (177) - (853) (1,030)
Net interest payable (23) (7) - (30)
Other finance costs - retirement
benefits - (19) (272) (291)
------------ ----------- ----------- ------------
Consolidated profit/(loss)
before tax 2,675 285 (1,738) 1,222
Taxation (309)
------------
Consolidated profit after
tax 913
============
Professional Consumer Unallocated Consolidated
30 Nov 2019 30 Nov 2019 30 Nov 2019 30 Nov 2019
GBP000 GBP000 GBP000 GBP000
Segment assets:
Property, plant and equipment 2,401 736 - 3,137
Intangible assets 17,957 7,099 - 25,056
Working capital assets 9,090 11,293 (579) 19,804
------------- ----------- ----------- ------------
Segment total assets 29,448 19,128 (579) 47,997
Unallocated head office assets and eliminations 14,330
Consolidated total assets 62,327
Segment liabilities:
Segment liabilities 11,379 8,576 (5,457) 14,498
Unallocated head office liabilities and eliminations 27,585
Consolidated total liabilities 42,083
============
3. Segmental analysis (continued)
Revenue and results: Professional Consumer Unallocated Consolidated
6 months to 6 months to 6 months to 6 months to
30 Nov 2018 30 Nov 2018 30 Nov 2018 30 Nov 2018
GBP000 GBP000 GBP000 GBP000
Segment revenue
Total segmental revenue 9,426 9,092 - 18,518
Inter-segment revenue (22) (226) - (248)
------------ ----------- ----------- ------------
Total external revenue 9,404 8,866 - 18,270
------------ ----------- ----------- ------------
Segment result
Adjusted EBITDA 5,647 2,627 (1,940) 6,334
Segment amortisation & depreciation (2,739) (1,527) (128) (4,394)
------------ ----------- ----------- ------------
Adjusted operating profit/(loss) 2,908 1,100 (2,068) 1,940
Intra group licence fee (792) (319) 1,111 -
Adjusting items (note 4) (177) - (1,282) (1,459)
Net interest payable 1 (13) (12) (24)
Other finance costs - retirement
benefits - (27) (242) (269)
------------ ----------- ----------- ------------
Consolidated profit/(loss)
before tax 1,940 741 (2,493) 188
Taxation (149)
------------
Consolidated profit after
tax 39
============
Professional Consumer Unallocated Consolidated
30 Nov 2018 30 Nov 2018 30 Nov 2018 30 Nov 2018
GBP000 GBP000 GBP000 GBP000
Segment assets:
Property, plant and equipment 838 599 - 1,437
Intangible assets 17,376 7,946 - 25,322
Working capital assets 7,301 14,157 (758) 20,700
------------- ----------- ----------- ------------
Segment total assets 25,515 22,702 (758) 47,459
Unallocated head office assets and eliminations 13,715
Consolidated total assets 61,174
Segment liabilities:
Segment liabilities 12,142 9,102 (6,228) 15,016
Unallocated head office liabilities and eliminations 19,928
Consolidated total liabilities 34,944
============
3. Segmental analysis (continued)
Revenue and results: Professional Consumer Unallocated Consolidated
Year ended Year ended Year ended Year ended
31 May 2019 31 May 2019 31 May 2019 31 May 2019
GBP000 GBP000 GBP000 GBP000
Segment revenue
Total segmental revenue 19,496 17,223 - 36,719
Inter-segment revenue (43) (479) - (522)
------------ ----------- ----------- ------------
Total external revenue 19,453 16,744 - 36,197
------------ ----------- ----------- ------------
Segment result
Adjusted EBITDA 11,997 4,442 (3,607) 12,832
Segment amortisation & depreciation (5,040) (3,322) (271) (8,633)
------------ ----------- ----------- ------------
Adjusted operating profit/(loss) 6,957 1,120 (3,878) 4,199
Intra group licence fee (1,656) (415) 2,071 -
Adjusting items (354) - (1,406) (1,760)
Net interest payable (7) (22) (11) (40)
Other finance costs - retirement
benefits - (48) (483) (531)
------------ ----------- ----------- ------------
Consolidated profit/(loss)
before tax 4,940 635 (3,707) 1,868
Taxation (450)
------------
Consolidated profit after
tax 1,418
============
Professional Consumer Unallocated Consolidated
31 May 2019 31 May 2019 31 May 2019 31 May 2019
GBP000 GBP000 GBP000 GBP000
Segment assets:
Property, plant and equipment 850 528 - 1,378
Intangible assets 17,979 7,541 - 25,520
Working capital assets 7,921 11,147 (602) 18,466
------------- ----------- ----------- ------------
Segment total assets 26,750 19,216 (602) 45,364
Unallocated head office assets and eliminations 14,797
Consolidated total assets 60,161
Segment liabilities:
Segment liabilities 10,178 8,577 (5,932) 12,823
Unallocated head office liabilities and eliminations 24,305
Consolidated total liabilities 37,128
============
4. Adjusting items
6 months to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Adjusting items included in administrative expenses
:
* Contingent costs associated with the formal sale
process 731 -
* Acquired intangible amortisation charge 299 299
* Equalisation of Guaranteed Minimum Pension (GMP)
benefits - 1,160
----------- -----------
1,030 1,459
=========== ===========
Adjusting items are those significant items which warrant
separate disclosure by virtue of their scale and nature to enable a
full understanding of the Group's financial performance.
On 15 November 2019, the Board announced it was embarking on a
formal sale process to sell the entire issued share capital of
Haynes Publishing Group P.L.C.. Contingent to a successful sale is
a proposed incentive arrangement for senior management in lieu of
the Long Term Incentive Plan (LTIP), where shares have been awarded
but will not vest in line with original expectations. The
announcement, therefore, triggered a modification to the existing
LTIP as well as a charge for the new incentive arrangement from
this date, calculated as a cash-settled share-based payment to the
date of a sale. The liability at the period end in relation to the
above, which is contingent to a successful sale, was GBP1.8
million, of which GBP0.7 million arose from a charge to the
Consolidated Income Statement in the period. The charge has been
included as an adjusting item due to its size however would require
reversing should a transaction not occur.
5. Taxation
The tax charge in the Consolidated Income Statement is
calculated using the tax rates which each of the Group's operating
entities expects to adopt for the financial year ended 31 May 2020.
The Group continues to expect its effective corporation tax rate to
be higher than the standard UK rate due to the trading profits it
generates in overseas subsidiaries where the tax rates are higher
than the UK.
The deferred tax asset relates to obligations under the defined
benefit pension scheme and other temporary differences. The
elements of the asset will be recovered in the UK and USA
respectively.
6. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following:-
Adjusted Statutory Adjusted Statutory
6 months 6 months 6 months 6 months
to to to to
30 Nov 30 Nov 30 Nov 30 Nov
2019 2019 2018 2018
GBP000 GBP000 GBP000 GBP000
Earnings :
Profit after tax attributable to equity
holders of the Company - continuing
operations 1,757 913 1,235 39
---------- ---------- ---------- ----------
No. No. No. No.
Number of shares
Weighted average for basic earnings
per share ([a]) 15,122,486 15,122,486 15,116,684 15,116,684
Adjusted weighted average for diluted
earnings per share ([b]) 16,324,986 16,324,986 15,427,351 15,427,351
---------- ---------- ---------- ----------
Basic earnings per share (pence) 11.6 6.0 8.2 0.3
Diluted earnings per share (pence) 10.8 5.6 8.0 0.3
---------- ---------- ---------- ----------
([a]) At the beginning of the period, the Company held 1,229,054
(2018: 1,240,000) of its ordinary shares in treasury which are not
included in the calculation. In the prior period, the Company sold
10,946 ordinary shares held in treasury which have been weighted
accordingly in the above calculation.
([b]) As at 30 November 2019 and 30 November 2018, there were
outstanding options on the Company's Ordinary shares. For diluted
earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all potential ordinary
shares, such as share options granted to directors and
employees.
7. Dividends
6 months to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Amounts recognised as distributions to equity holders
:
Final dividend of 4.0p per share (2018: 4.0p) 605 605
605 605
=============== =============
In light of the Board decision to enter a formal sale process to
sell the entire issued share capital of Haynes Publishing Group
P.L.C. (including all subsidiary companies), the Directors are not
declaring an interim dividend.
8. Analysis of the changes in cash and cash equivalents
As at Exchange As at
1 June 2019 Cash flow movements 30 Nov 2019
GBP000 GBP000 GBP000 GBP000
Cash at bank and in hand 4,871 566 (225) 5,212
=========== ========= ========= ===========
9. Retirement benefit obligation
The Group operates 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.
The last full IAS 19 actuarial valuation was carried out by a
qualified independent actuary as at 31 May 2019. During the period,
the financial position of the above pension arrangements have been
updated in line with the anticipated annual cost for current
service, the interest on scheme liabilities and cash contributions
made to the schemes to give a valuation for the six month period
ending 30 November 2019.
The increase in the Group's net pension obligations at 30
November 2019 compared with 31 May 2019 primarily reflects the
changes in financial conditions in the period resulting in changes
to actuarial assumptions, including a decrease in discount rates in
the UK and US.
The movements in the retirement benefit obligation were as
follows:
6 months 6 months
to to
30 Nov 2019 30 Nov 2018
GBP000 GBP000
Retirement benefit obligation at beginning of period (23,845) (18,712)
Movement in the period :
- Total expenses charged in the Consolidated Income
Statement (397) (576)
- Equalisation of Guaranteed Minimum Pension benefits - (1,160)
- Contributions paid 563 551
- Actuarial gains taken directly to reserves (1,434) 688
- Foreign currency exchange rates 30 (57)
Retirement benefit obligation at end of period (25,083) (19,266)
=========== ===========
10. Exchange rates
The foreign exchange rates used in the financial statements to
consolidate the overseas subsidiaries are as follows (local
currency equivalent to GBP1):
Period end rate Average rate
30 Nov 30 Nov 31 May 30 Nov 30 Nov 31 May
2019 2018 2019 2019 2018 2019
US dollar 1.29 1.28 1.26 1.25 1.30 1.30
Euro 1.17 1.13 1.13 1.13 1.12 1.14
Australian dollar 1.91 1.75 1.82 1.83 1.78 1.81
11. Property, plant and equipment
Total
GBP000
Net book value at 1 June 2018 1,525
Exchange rate movements 27
Additions 162
Disposals (37)
Depreciation (238)
Net book value at 30 November 2018 1,439
======
GBP000
Net book value at 1 June 2019 1,378
IFRS 16 transition adjustment on 1 June 2019 2,189
Exchange rate movements (95)
Additions - property, plant and equipment 162
Additions - leased right of use assets 90
Depreciation (490)
Net book value at 30 November 2019 3,234
======
The Group had no capital expenditure which had been contracted
but had not been provided for as at 30 November 2019
(2018: GBPnil).
12. Intangible assets
Total
GBP000
Carrying value at 1 June 2018 33,244
Exchange rate movements 338
Additions 4,362
Amortisation of acquired intangible assets (299)
Amortisation of other intangible assets (4,156)
Carrying value at 30 November 2018 33,489
=======
GBP000
Carrying value at 1 June 2019 33,502
Exchange rate movements (646)
Additions 4,447
Amortisation of acquired intangible assets (299)
Amortisation of other intangible assets (4,247)
Carrying value at 30 November 2019 32,757
=======
13. Asset held for sale
As at 31 May 2019, the freehold land and buildings in Sparkford,
UK, were classified as an asset held for sale. The Directors have
concluded that it is still appropriate to classify the freehold
land and buildings property as an asset held for sale at 30
November 2019. Contracts were exchanged with a third party for the
whole site on 17 December 2019 with further details contained in
note 15.
14. Related party transactions
During the six months to 30 November 2019, there were no
material related party transactions or material changes to the
arrangements with related parties as reported in the Annual Report
2019. Refer to note 15 for details of a post balance sheet event
which includes a related party transaction.
15. Post-balance sheet event
On 17 December 2019, the Group acquired the freehold land and
buildings of the Old Creamery, Sparkford from the Haynes Trust (JHC
Haynes is a Trustee of the Haynes Trust) for GBP0.3 million and
simultaneously exchanged contracts on the whole Sparkford site,
including the Old Creamery, for a sale price of GBP2.5 million.
Completion is due to take place on or before 17 June 2021 and on
completion, a leaseback of the existing offices and parking has
been agreed at a peppercorn rental to 17 December 2022 terminable
on 6 months' notice.
16. Contingent liability
In January 2020, Haynes North America Inc were named in a court
action from a former employer citing unfair dismissal. The
potential claim, if substantiated could be significant but the
claim is being rigorously denied and defended by management. The
claim is at a very early stage and as the outcome at this time is
uncertain, management feel it is appropriate to disclose as a
contingent liability.
17. Principal risks and uncertainties
The principal risks and uncertainties facing the Group during
the second half of the financial year are outlined in the Interim
Statement and summarised below :
- Both Brexit and the wider UK and Global economic outlook, in
particular, the consequential impact on consumer confidence and
businesses.
- Movements in the exchange rate of the US Dollar and Euro against Sterling.
- The impact of movements in interest rates, inflation and
investment performance on the Group's retirement benefit
schemes.
The Board considers that the above, along with the principal
risks and uncertainties which were discussed at more length in the
Annual Report 2019 under the following headings and page
references, continue to be the major risks and uncertainties facing
the Group :
-- The Group's principal operational risks and uncertainties (pages 20 - 21)
-- The processes adopted by the Board to identify and monitor risk (page 33)
-- The Group's principal financial risks and uncertainties (pages 81 - 82)
A copy of the Annual Report 2019 can be found on the Group's
corporate website www.haynes.com/investor.
A copy of this half-year report will be distributed to all
shareholders and will also be available to members of the public
from the Company's registered office at Sparkford, Near Yeovil,
Somerset, BA22 7JJ. A copy of the interim report will also be
available on the Group's corporate website at
www.haynes.com/investor.
INDEPENDENT REVIEW REPORT TO HAYNES PUBLISHING GROUP P.L.C.
Report on the Interim Financial Statements
Our conclusion
We have reviewed Haynes Publishing Group P.L.C.'s Interim
Financial Statements (the "interim financial statements") in the
Interim Report and Accounts of Haynes Publishing Group P.L.C. for
the 6 month period ended 30 November 2019. Based on our review,
nothing has come to our attention that causes us to believe that
the interim financial statements are not prepared, in all material
respects, in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and
the Disclosure Guidance and Transparency Rules sourcebook of the
United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the Consolidated Balance Sheet as at 30 November 2019;
-- the Consolidated Income Statement and Consolidated Statement
of Comprehensive Income for the period then ended;
-- the Consolidated Cash Flow Statement for the period then ended;
-- the Consolidated Statement of Changes in Equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Report
and Accounts have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 1 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the Interim Financial Statements and the
Review
Our responsibilities and those of the Directors
The Interim Report and Accounts, including the interim financial
statements, is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the Interim
Report and Accounts in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim Report and Accounts based on
our review. This report, including the conclusion, has been
prepared for and only for the Company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
INDEPENDENT REVIEW REPORT TO HAYNES PUBLISHING GROUP P.L.C.
Responsibilities for the Interim Financial Statements and the
review (continued)
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim
Report and Accounts and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
29 January 2020
a) The maintenance and integrity of the Haynes Publishing Group
P.L.C. website is the responsibility of the Directors; the work
carried out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the Interim Financial
Statements since they were initially presented on the website.
b) Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FZGZMVLRGGZM
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