Haynes earnings surge in half-year results

The London-listed firm’s like-for-like group revenue was 1% firmer to £12.3m, excluding the impact of foreign exchange.

Its EBITDA surged 21% for the period, to £4.1m, while group operating profit improved 33% to £0.8m.

Group profit before tax was ahead 67% at £0.5m.

Haynes’ basic earnings per share were up 75% at 2.1p, while its board declared an interim dividend of 3.5p, precisely in line with 2015’s interim payout.

At period end, Haynes had net cash of £0.6m, compared to net debt of £0.5m at the same time last year.

“I am pleased to report that Haynes has significantly improved its financial outlook and trading performance in recent months and experienced like-for-like revenue and profit growth over the six month period to 30 November 2016,” said chairman Eddie Bell.

“Whilst we have partly benefited from exchange rates, these results indicate a strong organic performance.”

Bell said during the period, Haynes continued to see good growth across its digital product ranges which now represented 36% of group revenue, in part facilitated through the update and launch of its electronics diagnostic solution VESA Mk II.

“We have also completed the outsourcing of group printing and order fulfilment in the US, which has allowed us to cut significant costs from the business.”

Through its recent acquisition of OATS Limited, Bell said the company has broaden its base.

“The addition of the OATS' comprehensive lubricants database not only complements HaynesPro's professional offering but will also help to strengthen the relationship between Haynes, the parts distributors and global oil companies.”