|Shares responding well to the maiden share purchase by the CTO 👍|
|Looking at Autodata accounts, it's turnover is less than Haynes but it is more profitable, looks like they went digital a year or so earlier but it gives an insight into highly rated pure digital data businesses with a moat can be by PE buyers.|
|LOL Only in 30 odd at a time so I do get about.|
|Battlebus. You are everywhere!!|
|Quite a deal Norbert.|
|I bought in yesterday so surpised we're up today, doesn't usually happen. Would like to buy more so hoping the share price doesn't get carried away in the short term at least.
The pension deficit will be off-putting to some especially when compared to the market cap, but that could change quickly if yields continue to rise and the business continues to make progress.|
|Nice one Rhomboid, plenty to go for yet.|
|Not really, it's just a clumsy buyer (me) trying to double up my holding so don't read too much into it. I've been behind the curve here and I'm trying to catch up!|
|Another great day 👍|
Value looks compelling but there's still the hefty pension deficit to put into the mix, hopefully this year will see that reducing and the core business beginning to accelerate.|
|Details of Tennessee property for sale:
US$ 6m = GBP 4.7m or 22% of mcap alone (mcap on stocko site is wrong as there are 2 classes of share hence actual mcap is circa GBP 21m).
UK HQ site with OPP due to be marketed shortly and I anticipate a GBP3-4m asking price so those two properties alone = 40% of mcap hence investors are getting a significant part of the excellent Haynes business for effectively nothing.
Note: original post edited due to error (purely mine!) - more haste less speed.....|
|Gosh the interims are actually up!
Though the dividend is still well below being covered....|
|Improving picture with this mornings results imv it's a thumbs up 👍|
|News of their HQ site in Sparkford being marketed as a residential development site with OPP should surface this month.|
|interested here. lots of freehold property. dollar sales should be ok witht he strength of the dollar.|
|I've been adding a few here recently.|
|One-third of Haynes’ (LSE:HYNS) revenue comes from a nicely profitable online information service for professional mechanics. Turnover in this business, HaynesPro, has doubled in eight years to about £8m, after rising by a very impressive 29% last year.
Furthermore, in the Report and Accounts just published the directors say that the 2016/17 year has started very well for the professional side of its business, with “strong first quarter trading”, so further profit gains can be expected.
It is the market leader in many European countries, with a duopoly in the UK and close to monopoly in other countries (e.g. 90% of the German market), with 40,000 customers, consisting of both independent auto repair shops and manufacturers of diagnostic equipment. Of the five major vehicle diagnostic equipment groups, three select HaynesPro as the preferred supplier.
Its customers are subscribers rather than outright buyers, thus there is an ongoing source of income and some degree of customer captivity, i.e. mechanics’ familiarity with the HaynesPro system, combined with natural human inertia, mitigate against switching to competitors’ offerings.
It offers data on 19,000 vehicles in 25 languages with over 1,000,000 data requests per day, helping with:
•maintenance and repair methods;
•tracing and fixing electronic faults;
•links to component codes;
•ordering the right parts;
•job cost estimates;
•comfort wiring diagrams.
There are 90,000 drawings on the system to help mechanics deal with a bewildering array of vehicles.
HaynesPro makes an operating profit of at least £1.5m, occupying more than half of the Group’s 236 employees. It is set to take on more staff, while the older paper-based manuals business sheds people.
To put HaynesPro profit in perspective: the Group’s market capitalisation is £19m, at a share price of £1.25.
(Previous Newsletters for Haynes: 11th – 19th Feb 2015, 8th – 12th Oct 2015, 29th Oct 2015, 4th – 9th Feb 2016, 18th May 2016)
(I bought at £1.159 in February 2015 and have received 15p in dividends, if you count next month’s 4p)
While the professional division has enjoyed impressive revenue growth, UK printed manuals (paper plus online resources) have fallen over five years – see table.
Whereas in 2012 UK mechanical enthusiasts bought over £7m of manuals, in the year to May 2016 less than £5m were sold. In fact, UK manual sales have halved in a decade.
The fall of manual sales in America over the decade is also worrying, from £15.2m to £11m. But, the decline is most dramatic for Australia with sales volumes only 44% of what they were five years ago.
With volume falls of this magnitude you can understand why investors have abandoned Haynes, pushing the share from over £4 to only £1.25. The sellers do not see a future for a business that expensively strips down a car, writes a manual and then tries to interest DIYers in buying it, when they could access information from the web for free, or get the local garage to work on the ever more complex repairs and maintenance jobs.
Revenue and operating profits
Revenue £000s 2016 2015 2014 2013 2012
4,918 4,741 5,950 6,808 7,415
Rest of Europe
7,971 6,700 6,591 6,106 5,918
11,021 11,963 12,685 11,164 12,888
1,093 1,859 2,751 2,553 2,496
Rest of World (manuals)
707 802 1,307 1,001 1,097
Analysed as follows:
17,575 19,454 22,955 22,209 24,692
7,945 6,377 6,073 5,160 4,698
Rights and licenses
190 234 256 263 424
(UK + Europe)
1,471 623 949 890 1,762
Op. profit (N. America and Aus.)
340 1,237 2,612 1,755 2,625
And yet, there are glimpses of light for the automotive and the non-automotive manuals businesses.
For one, UK sales rose over the last year.
Second, operating profit in North America remains positive, despite volume reductions.
I’ll look at some more reasons for hope in the next two Newsletters.|
|Results indicated that the digital side of the business is progressing to plan - print is on the way out which we all know and I think has been priced in. I think the market agrees hence the tick up but very very early days at the mo. IMHO.|
|Wad.....except the valuation of the company which is up circa 25% since early June as investors begin to see the turnaround taking shape.....|
|Anyone notice the final results 2 weeks ago ? No , thought not . Best not to look , everything is down again.......surprise?|
|Panmure have reiterated their 150p price target and Buy rating|
|Further to prior posted I and very pleased to note that Haynes Group £HYNS recd residential planning permission for their Sparkford HQ site yesterday. Some minor conditions incl 106 Agreement. Excellent news.|
|False share price rise today ; the MMs have marked up 4% , only problem is that there are no trades at all.|