2008
Report & Accounts for the year ending May 2008
Haynes Publishing Group P .L.C.
ANNUAL
REPORT 2008   Haynes Worldwide 
Head Office 
Haynes Publishing Group P.L.C. 
Sparkford, Yeovil, Somerset  BA22 7JJ, England
Telephone: 01963 440635
Fax: 01963 440825
E-mail: info@haynes.co.uk
Website: www.haynes.co.uk/investor
International Telephone: +44 1963 440635
Fax: +44 1963 440825
Sales Contact Information
Telephone: 01963 442030
Fax: 01963 440001
E-mail: sales@haynes.co.uk
Online Sales: www.haynes.co.uk
UK and European Offices
Haynes Publishing 
Sparkford, Yeovil, Somerset  BA22 7JJ, England
Telephone: 01963 442030
Fax: 01963 440001
E-mail: sales@haynes.co.uk
Website: www.haynes.co.uk
Haynes Publishing Nordiska AB
Box 1504, 751 45 Uppsala, Sweden
Telephone: +46 18 124016
Fax: +46 18 102803
E-mail: haynes.nordiska@telia.com
Website: www.haynes.se
Vivid Automotive Data & Media B.V.
Koningsweg 29a
NL – 3762 EA SOEST, Holland
Telephone: +31 (35) 603 6270
Fax: +31 (35) 602 7597
E-mail: info@vivid-europe.com
Website: www.vivid.nl
American and Australian Offices
Haynes Manuals Inc.
861 Lawrence Drive, Newbury Park  
CA 91320, United States of America
Telephone: (805) 498-6703
Fax: (805) 498-2867
E-mail: sales@haynes.com
Website: www.haynes.com
Haynes Manuals Inc.
63 Fairford Road, Padstow  NSW 2211, Australia
Telephone: 61 2 8713 1400
Fax: 61 2 9708 3070
E-mail: sales@haynes.com.au
Website: www.haynes.com Corporate Statement  4
Financial Highlights  5
Five Year Summary of Key Financial Performance  6
Chairman’s Statement  8
Group Chief Executive’s Review  10
Group Board Directors and Advisers  16 
Group Board Executive Director Biographies  17
Group Board Non-Executive Director Biographies  18 
Report of the Directors  19
Corporate Governance  23
Board Report on Remuneration  28 
Statement of Directors’ Responsibilities  34
Report of the Independent Auditors  35
Consolidated Income Statement  37
Consolidated Statement of Recognised Income and Expense  38
Consolidated Balance Sheet  39
Consolidated Cash Flow Statement  40
Notes to the Consolidated Financial Statements  41
Company Balance Sheet  74
Notes to the Company Accounts  75
Financial Calendar, Analysis of Shareholders 
and Share Registrars  81
Haynes Worldwide Sales Offices  Facing this page
Contents Haynes Publishing Group P .L.C. is the worldwide market leader in the 
production and sale of automotive and motorcycle repair manuals.
Every Haynes manual is based on a complete vehicle strip-down and 
rebuild in our workshops, so that the instructions to our customers 
are inherently practical and easy to follow.
Through the acquisition of Vivid Holding BV in February 2008, the 
Haynes Group has become a leading European supplier of digital 
technical information to the motor trade, thereby broadening the 
Group’s business to include professional as well as DIY mechanics 
and enthusiasts.
The Group publishes many other DIY titles as well as an extensive 
array of books about motor sport, vehicles and general transport.
Corporate Headquarters
Haynes Publishing Group P.L.C.
Sparkford, Yeovil, Somerset BA22 7JJ England
Telephone: 01963 440635 (International: +44 1963 440635)
Fax: 01963 440825 (International: +44 1963 440825)
Corporate Statement
4 4 • Group revenue from continuing operations of £31.1 million   
 (2007: £29.2 million)
• Group operating profit on continuing operations of £7.0 million  
 (2007: £7.2 million)
• Group pre-tax profit on continuing operations of £7.1 million  
 (2007: £7.1 million)
• North America & Australia segmental operating profits of 
 £5.5 million ($11.0 million) 
 (2007: £5.9 million, $11.3 million)
• UK and Europe segmental operating profits on continuing   
 operations of £1.3 million 
 (2007: £1.1 million)
• Basic earnings per share from continuing operations of 
 30.8 pence 
 (2007: 31.6 pence)
• Net funds of £0.2 million 
 (2007: £6.5 million)
• Total dividend per share for the year of 15.5 pence 
 (2007: 15.5 pence)
Financial Highlights  
for the year ended 
31 May 2008 
5 6
Five Year Summary of Key 
Financial Performance
[1] Figures for 2004 were prepared in accordance with accounting policies under UK GAAP . 
Figures for 2005, 2006, 2007 and 2008 have been prepared in accordance with accounting 
policies under IFRS as adopted for use in the EU.
[2] Figures for 2006 to 2008 relate to the Groups continuing activities
6
2008
31.1
31 May
Profit before tax £ million
[1][2]
2008
7.1
31 May
Operating profit £ million
 [1][2]
2008
7.0
31 May
Turnover £ million
 [1][2]
04
39.0
04 05
36.4
06
30.6
07
29.2
8.4
04 05
9.4
06
8.9
07
7.2
8.3
04 05
9.2
06
8.5
07
7.1 31 May
Dividends per share pence
31 May
Basic earnings per share pence
[1][2]
7
© Haynes Publishing 1973
2008
30.8
2008
15.5
2008
0.2
31 May
Net funds £ million
30.4
04 05
36.4
06
35.2
07
31.6
12.0
04 05
14.5
06
15.5
07
15.5
(1.5)
04 05
1.8
06
3.1
07
6.5 Chairman’s Statement
Chairman’s Statement
Strategically, this has been an important year for the Haynes Group. 
The financial year began with the acquisition of the Bookworks 
businesses in Australia in June 2007. By the end of the second 
quarter we were able to report the successful integration of the 
Bookworks and Haynes Australian businesses into a single location 
based in Sydney. This was followed at the end of our third quarter 
by the acquisition of Vivid Holding BV. 
The acquisition of the Vivid Group, Europe’s leading supplier of 
digital technical information on repair, maintenance and diagnostics 
to workshops, allows the Haynes Group to establish a presence 
in the professional automotive market and is a very  significant 
addition to the Haynes Group. 
The above strategic acquisitions come during a period of heavily 
publicised economic downturn. The weakness of the US Dollar against Sterling has once again had a 
negative impact for the Group. During the year, the average US Dollar exchange rate against Sterling 
increased from $1.93 to $2.01, reducing the reported revenue by £0.7 million and pre-tax profits 
by £0.2 million. The increased cost of living, largely as a result of the higher fuel prices, continues 
to impact consumer spending in both our key geographical markets as well as impacting our cost 
base, placing pressure on margins. In light of these challenging market conditions it is satisfying 
to report that, as a result of prudent action by our senior management team, we have had a 
stronger second half year of trading. As a result the Group was able to recover the shortfall in profit 
experienced during the first half of the year.
 Results summary
Group revenue from continuing operations was £31.1 million, 7% up on the 
prior year (2007: £29.2 million) driven by a full year contribution from the 
Australian acquisition and three months of trading from Vivid Holding BV, 
acquired at the end of our third quarter. Group operating profit from continuing 
operations was £7.0 million (2007: £7.2 million), down 3% impacted by certain 
one-off restructuring costs in the UK, a lower credit to the Income Statement 
following the performance of the pension schemes as measured by IAS 19 
and the negative impact of the weakened US Dollar. However, with a positive 
net movement on the pension schemes assets/liabilities Group pre-tax 
profits ended the year in line with the prior year at £7.1 million (2007: £7.1 
million).  The Group’s effective tax rate for the year, on attributable profits, was 
29% (2007: 27%) leading to a basic earnings per share from 
continuing operations of 30.8 pence (2007: 31.6 pence).
Strategy & structure
In last year’s report I communicated our central objective of 
creating a platform that would allow the Haynes businesses 
to grow and develop and firmly establish the Group as global 
industry experts for the supply of automotive and motorcycle 
repair, servicing and technical information. 
Through the acquisition of Vivid Holding the Group has made 
a considerable leap forward in achieving this aim and work is 
currently underway to develop new product initiatives using the 
cutting edge Vivid digital platforms and the extensive Haynes 
automotive knowledge database.  The Group will continue to 
take the tried, tested and trusted Haynes philosophy and apply 
it to other areas where our practical approach can add value. The launch of the Spitfire and 
Lancaster Manuals during the year, in partnership with the RAF, have been very well received 
and visibly demonstrate the diversity of the Haynes brand. 
8 The Board
In May 2008, I was pleased to announce the appointment of my son J as Group Vice Chairman. 
J has had a seat at the main Board since March 2000 and as Managing Director of the UK & 
European operations has, working with the rest of the Executive Management team, played an 
important part in the restructuring and development of the UK & European businesses.
Dividends 
In light of the difficult trading conditions and following the two acquisitions during the year, which 
were predominantly funded from internal cash, the interim dividend was reduced to 5.0p (2007: 
5.5p). However, following a stronger second half performance and a confidence that the new 
enlarged Haynes Group is well placed to deliver earnings growth in the coming years the Board is 
recommending an increase in the final dividend to 10.5p per share, maintaining the total dividend for 
the year at 15.5p, the same level as last year (2007: 15.5p). Subject to final approval by shareholders, 
the final dividend will be paid on 30 October 2008 to shareholders on the register at the close of 
business on 3 October 2008. The shares will be declared ex-dividend on 1 October 2008.
Corporate governance
The Board’s governance framework is clearly defined and aims to support the vision and values 
of our business and to protect and enhance the interests of all our 
stakeholders. The Board actively monitors the assessment and 
mitigation of risk and ensures the Group has the correct health & 
safety procedures to protect all our employees.  Further details are 
discussed in greater depth in the relevant sections of this Annual 
Report and Accounts.
Staff
On behalf of the Board I would like to thank our employees for their 
continued hard work and dedication during the year. I would also like 
to welcome our new employees in Bookworks Australia, and at Vivid in 
The Netherlands, Italy, Spain and Romania to the Haynes Group. 
The Group continues to re-position its businesses to make them 
leaner, more innovative and better equipped to deliver content 
aligned to the needs and wants of the end user. This process 
can sometimes be difficult for all concerned but I am confident 
that through this process we place the Group in a stronger 
position, both financially and operationally. This will undoubtedly 
benefit employees and our shareholders in the years to come.
Future prospects
I firmly believe the prospects for the Haynes Group are positive. 
It is undeniable that the world’s economies are facing their most 
challenging future for many years. However, we have been here 
before and I am confident that through careful management 
we can once again steer the Group through these uncertain times. The restructuring undertaken 
over recent years, coupled with the new acquisitions during the year, places the Group in a strong 
position to move forward and improve on our results in the years to come.
 
John H Haynes, OBE
Executive Chairman
4 September 2008
9
Chairman’s Statement (continued) Business structure and overview
The Haynes Group, founded by the Chairman John Haynes, OBE 
in 1960, has its operations divided into two primary geographical 
segments. Firstly, the UK and European businesses, which are 
serviced from headquarters in Sparkford, Somerset and secondly, 
the North American and Australia operation, which is also 
responsible for Latin America and the Pacific Rim and operates 
from headquarters near Los Angeles, California. The US business 
has its main production and principal distribution operations 
in Nashville, Tennessee. Each business segment has its own 
management structure and has full vehicle workshop and editorial 
resources, book manufacturing facilities and sales and distribution 
capabilities.
The success of the Haynes business over almost 50 years has 
been underpinned by an attention to detail and an uncompromising approach to independent and 
trustworthy instructional advice. This simple but important philosophy has been instrumental in 
the Group achieving its global market leading position. The fact that all Haynes Manuals are based 
on a complete vehicle strip-down and rebuild in one of our workshops, so that the written and 
photographic instructions for our customers is inherently practical and easy to follow, may still come 
as a surprise to some, but for those who know Haynes, this renowned attention to detail will be a 
familiar concept. 
In addition to our extensive range of automotive and motorcycle repair manuals, the Group publishes 
a wide range of titles which are practical, instructional and easy to read and aimed at those with an 
interest in motoring and motor sport as well as other transport, aviation, military and general DIY 
related activities. 
It would be unfair to our employees around the world not to acknowledge that the past financial year 
has been very difficult. With a start point in the USA in August last year, 
we have seen the current financial problems impact economies 
around the Globe. Their work has been made increasingly difficult as 
a result. I want to thank all of them for their continuing dedication and 
commitment.
In our Annual Report & Accounts last year I referred to a changing 
global market place. I mentioned how our market leading position 
throughout the English speaking world provides the Group with a 
unique opportunity to become a major world wide supplier for all 
automotive and motorcycle repair, servicing and technical information, 
to an overall market place that is growing and which is increasingly 
demanding content through multi-media channels. Therefore, the 
acquisition of the Vivid Group on 28 February 2008 for a cash 
consideration of € 8.0 million (£6.0 million), funded mainly through 
internal cash but also with limited short-term borrowings, was a very  
important strategic move for the Group. 
Formed in 1996, Vivid is a dynamic group of companies, still in their early growth 
phase. Nevertheless, Vivid’s database, which has been developed using market 
leading digital technology and is available in 19 languages, has already established the 
business as market leaders in the supply of digital technical information to the professional 
automotive market in continental Europe. The synergistic skill sets possessed by Vivid were a key 
factor in our decision to acquire the business. Vivid’s in-house skills covering language translation, 
web development, DVD production and copy protection security are all complementary to the way 
10
Group Chief Executive’s Review 11
in which Haynes is planning to develop its own product offerings going forward. This could open up 
the possibility of an internet based multi-language Haynes consumer product for markets that could 
not previously have supported the cost of a print based product. Being part of the Haynes Group, 
opens up the opportunity to take the Vivid product offering to new geographical markets such as the 
UK, USA and Australia where Haynes already has a strong presence whereas Vivid does not. 
Earlier in the year the acquisition of Bookworks, the most prominent distributor of automotive repair 
information in Australia, further cemented our position as the leading supplier of automotive repair 
information to the automotive aftermarket in Australia.
Operating results overview 
At the end of November, our half year, Group pre-tax profit was 8% down on the prior period 
and early third quarter trading remained difficult. Nevertheless, as mentioned in our third quarter 
Interim Management Statement, Management believed that there was a realistic 
possibility of improving on this position by the end of the financial year. I am 
therefore, pleased to report that the Group has been able to deliver an improved 
second half performance with Group pre-tax profits for the year of £7.1 million, 
matching the performance of the prior year (2007: £7.1 million). Our second half 
performance was achieved despite a higher charge to profit of £0.1 million for 
cost restructuring in the UK business and a higher charge against profit of £0.2 
million arising from our IAS 19 pension scheme accounting in comparison to 
last year. Save for these two non-trading factors and the adverse impact of the 
US Dollar exchange rate against Sterling, which lowered pre-tax profits by £0.2 
million, we would have been reporting a growth in pre-tax profits of 7%, in line 
with our growth in revenue, which, I believe, in the prevailing market conditions, 
would be seen as very satisfactory. 
Group revenue during the period was up 7% to £31.1million (2007: £29.2 
million) boosted by the new acquisitions during the year which, in aggregate, 
added £1.6 million to our top line. Exchange rate movements had a detrimental impact 
on our reportable revenue, with an average US Dollar exchange rate against Sterling 4% 
weaker than last year. Had we been reporting under constant exchange rates, Group 
revenue would have ended the year higher by £0.7 million. 
In the US, trading conditions softened significantly during the second quarter and 
remained soft throughout the rest of the year. The problems in the financial markets 
coupled with the spiralling cost of fuel have significantly dampened consumer demand 
and we wait to see whether the recent fiscal stimulus provides a respite in the coming 
months. In the UK, like-for-like revenue performed well finishing the year 10% ahead of last year. It 
should, however, be noted that a significant proportion of this increase came from external printing 
services, where the margin is traditionally much lower than our core products. This said it was 
satisfying to see all three areas of the UK business Automotive, General Publishing and Licensing 
achieving revenue growth over the prior year. With the inclusion of three months of trading from Vivid 
Holding BV, revenue in the UK & Europe increased by 18% to £13.9 million (2007: £11.8 million).
Gross margins were impacted by a higher mix of low margin external printing services in the UK and 
lower volumes in 2008 in the USA, which resulted in the gross margin percentage ending the year 
lower at 61.3% (2007: 64.1%).
Group Chief Executive’s 
Review (continued) Management continue to maintain a tight control over Group overheads. During the third quarter, the 
UK business restructured its promotional design, direct mail and web sales operation resulting in one 
off restructuring costs of £0.1 million. Also during the third quarter the role of the Group Company 
Secretary was combined with that of the UK & European Finance Director; both of these measures 
will bring cost benefits to the Group in the coming year.
Following a higher return on the Group’s pension scheme assets of £0.4 million, finance income 
increased to £1.5 million (2007: £1.1 million). Partially offsetting the higher finance income was a 
higher interest charge on the pension scheme’s liabilities of £0.2 million, which led to an increase in 
finance costs to £1.4 million (2007: £1.2 million).
The resulting net impact of the above meant that pre-tax profits ended the year in line with the prior 
year at £7.1million (2007: £7.1 million).
Segmental overview 
North America and Australia 
As a result of the acquisition of Bookworks in Australia local currency sales in North 
America and Australia ended the year 3% ahead of last year at $34.6 million (2007: 
$33.7 million). Despite stronger sales of automotive repair manuals during the 
important second half of the year, up 4% on the comparable period, sales were 
not quite able to offset the poor first half and ended the year down 2%. Sales of 
Motorcycle manuals performed well ending the year 14% ahead of the prior period.  
In Australia the integration of the Haynes and Bookworks businesses was completed 
part way through the year and the combined business, operating from newly 
purchased premises in Sydney, contributed an additional $1.4 million (£0.7 million) of 
revenue during the first year.
Revenue from the new US website, whilst modest in Group terms, has already 
covered the cost of development and through the use of video presentations and a 
customer chat room allows the US business to communicate directly and more effectively 
with its end user.
The net impact of the above factors left the North American and Australian operating 
profits, in local currency 5% ahead of the prior year at $10.2 million (2007: $9.7 million). 
However, after a lower credit to profit arising on the measurement of the US pension 
scheme under IAS 19, in comparison to last year, of £0.4 million and after the impact 
of a higher average exchange rate which adversely impacted profits by £0.2 million, US 
segmental profits in Sterling ended the year 7% lower at £5.5 million (2007: £5.9 million).
United Kingdom and Europe
•      Automotive 
Revenue from our core Haynes manuals performed strongly during the first six months, ending 
the period 9% ahead of the prior year. Sales slowed down during the second half of the year but 
nevertheless, still ended the year 1% ahead of the prior period. The UK also experienced revenue 
growth from foreign language Manual sales, up 8% and Motorcycle titles ahead by 5%. Volume 
sales of English language manuals to Scandinavia ended the year ahead by 16% helped by the 
recruitment of a new sales manager at the half year.
 
12
Group Chief Executive’s 
Review (continued) 13
•      General Publishing 
Sales of Haynes Book Division titles performed strongly during 
the second half of the year, finishing the second six months 
21% ahead of the prior period. As a result, overall Haynes Book 
Division sales ended the year 8% ahead of last year. Sales of 
the Spitfire Manual, the legendary World War II Supermarine 
aircraft which provides a unique insight into the engineering and 
construction of this remarkable aeroplane and is based around 
the restoration of the Spitfire Mk XVI at RAF Coningsby, ended the year as 
the Division’s top selling title, selling over 20,000 copies to-date. Elsewhere, 
there were year-on-year sales increases in the Haynes Practical Manual 
series and Home & Computing series, both up 12% and the Bike series up 
37% helped by a new release of the Haynes Bike Book, now in its 5th Edition 
and with lifetime sales in excess of 300,000 copies. 
Sales through the licensing channel, whilst modest in Group terms, have tripled in the last 12 
months and continue to gather momentum. Income from our licensed boys clothing range with 
Next, the high street retailer, continues to perform well with the range being extended to include 
boys’ nightwear and bedding.  In autumn 2007 we launched the new Haynes combustion engine 
toy, which sold very well over the Christmas period and we are encouraged by the interest from new 
retail outlets for the coming year. All of these new product ranges provide Haynes with excellent 
exposure to a younger audience and help to ensure the message that DIY can be fun if learnt from 
an early age.
The net impact of the above factors led to an increase in UK & European like-for-like revenue of 
10% to £13.0 million (2007: £11.8 million). After inclusion of three months of trading from the newly 
acquired Vivid Group, revenue increased to £13.9 million, an increase of 18%. UK & European 
segmental profits increased during the year to £1.3 million (2007: £1.1 million), an increase of 18%.
Taxation 
The charge to taxation on continuing operations for the year was £2.0 million (2007: £1.9 million) 
giving an effective tax rate of 29% (2007: 27%). Last year’s effective rate being slightly lower than 
normal due to the availability of loss relief from the operations discontinued during the year.
Net debt and cash flows 
The Group started the financial year under review with net funds of £6.5 million. During the year the 
Group made two acquisitions for a cash consideration of £6.6 million (excluding transaction costs) 
and purchased a new freehold property to accommodate the combined Australian operation for 
£0.9 million. Accordingly, to end the year with a small but nevertheless positive net funds position 
demonstrates the Group’s ability to generate strong cash flows which is a major benefit to the Group 
in its effort to grow the business. 
During the year cash generated from continuing operations was £7.0 million (2007: £7.6 million) and 
represented 100% of Group operating profit from continuing operations (2007: 106%). 
Group Chief Executive’s 
Review (continued) 14
Treasury management & procedures 
The Group’s treasury policies are designed to reduce and minimise financial risk and ensure sufficient 
liquidity for the Group’s future needs. The Group operates strict controls over all treasury transactions 
including dual signatories and appropriate authorisation limits. The Group’s principal financial 
instruments comprise overdrafts, lease financing arrangements and cash. The main purpose of 
these instruments is to finance the Group’s working capital requirements as well as funding its capital 
expenditure programmes. No trading in financial instruments is undertaken. 
The Group’s main currency exposure is derived from trading transactions between Group operating 
units and with our global customer base. Approximately 48% (2007: 57%) of our revenue streams 
are generated in US Dollars, 38% (2007: 36%) in sterling and the balance coming from a mix of 
currencies across our operating entities. Although the Group has this exposure to currencies it is able 
to offset part of the currency risk as much of the product for the European markets is manufactured 
in the US and invoiced in local currency.
Pensions 
The Group has 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. 
As at 31 May 2008 the aggregate deficit on the two retirement benefit schemes was £6.8 
million (2007: £6.9 million). The lower deficit reflects a reduction in the present value of the 
combined schemes defined benefit obligations of £1.4 million, principally as a result of an 
increased discount rate assumption of 6.6% (2007: 5.6%) applied by the UK Scheme 
actuaries in line with International Accounting Standard 19. However, the gain on the 
lower liabilities was mostly offset by lower returns on the combined schemes assets of 
£1.3 million.
Group Outlook 
In today’s economic climate of rising fuel prices and higher cost of living expenses, there is 
a clear financial benefit to the consumer from using a Haynes Manual.  Each Haynes manual 
contains tips for saving fuel as well as showing motorists how they can save money on garage 
bills by doing simple servicing and maintenance tasks themselves. Through our marketing 
initiatives and end user promotions we will continue to spread this message. 
In the UK and Europe, management will continue their focus on efficiency. It is essential 
that the business is able to offer quality products, in a cost effective manner and in a 
format that our end user requires. Already the first Haynes foreign language title has been 
passed to Vivid for translation, saving on external translation costs, and Management 
from Haynes and Vivid will continue to explore new opportunities for both businesses 
including taking the first steps toward the creation of a Vivid sales presence in the UK. 
For Haynes this will involve looking at the platforms and channels for distributing our 
instructional, technical and repair information and for Vivid it will be further development 
of their digital technical information on repair, maintenance and diagnosis to the 
professional automotive aftermarket and expansion into new markets where currently 
they have limited or no presence.
Group Chief Executive’s 
Review (continued) 15
In the Haynes Book Division, the new title programme for the coming year is the 
largest yet and should help the Division improve upon the sales growth of recent 
years.  In the Haynes Licensing division the new partnership with iconic British jeans 
company Lee Cooper to produce a range of men’s clothing for release in the autumn 
of 2008 should help further promote the Haynes brand and cement our association 
with some of the UK’s leading brands.
In North America a new print advertising campaign began this month focussing on the 
opportunity to reduce motoring costs in difficult times by working with a 
Haynes Manual and we will be working with our customers to encourage 
them to support this message with their promotional activities. This will also 
be a part of our marketing effort in all operating companies. In Australia, 
the Haynes businesses can look forward to their first full year of trading as 
a combined business and attention will be given to developing both the 
automotive repair information and general publishing areas of the business. 
Work is also already underway to expand the Vivid data to include 
Australian vehicles. We are also in the early stages of researching the 
US market in relation to Vivid products. Considerable in–house research 
has already been undertaken and an ad hoc market research project will 
follow shortly to determine the requirements for US market entry.
Undoubtedly the macroeconomic environment that we face in financial 
year 2009 is going to be difficult in all our key markets, and with many 
twists and turns yet to be revealed. This is an area of obvious ongoing 
concern. However, the Haynes Group is financially strong and operationally 
well placed to take on these challenges. Over the past five years, the Group has been quietly 
repositioning itself. We continue to assess opportunities for geographic expansion of the Haynes 
core products into a few rapidly developing markets as well as other opportunities for positive 
investment. Through careful restructuring of its existing business coupled with a desire and capability 
to acquire new businesses, the Group is putting in place the platforms to make Haynes the supplier 
of first choice for ‘Do–it–Yourself’ and Professional Mechanics, throughout the World, for those who 
have a need for all automotive and motorcycle repair, servicing and technical information.
Eric Oakley
Group Chief Executive
4 September 2008
Group Chief Executive’s 
Review (continued) 16 16
Executive Directors J H Haynes* OBE (Chairman)
 E Oakley
+ 
(Group Chief Executive)
 D Benhardus
+
 CPA
 J H C Haynes
Non-Executive Directors D W Suter FCA*  (Chairman of Audit Committee)
 R P Corbett
*  (Chairman of Remuneration and Nomination  
 Committee, and Senior Independent Director) 
 E Bell
*  
 M E F Haynes
 A Garner
 
*
  Members of Remuneration and Nomination Committee  
  

 Members of Audit Committee
 
+  
US Resident
 
Group Company Secretary J T Bunkum FCA
Registered Office Sparkford, Yeovil, Somerset BA22 7JJ
 Company No. 659701
Auditors BDO Stoy Hayward LLP 
 Arcadia House, Maritime Walk, Ocean Village, 
 Southampton SO14 3TL
Solicitors Osborne Clarke  
 2 Temple Back East, Temple Quay, Bristol BS1 6EG
 Batt, Sanders & Bennett  
 17 Hendford, Yeovil, Somerset BA22 1UH
Principal UK Bankers Barclays Bank PLC  
 Corporate Banking Centre, Park House, Newbrick Road,  
 Stoke Gifford, Bristol BS34 8TN
Principal US Bankers Union Bank of California  
 445 S Figueroa Street, 10th Floor, Los Angeles,  
 CA90071-1655, USA
Stockbrokers Blue Oar Securities PLC  
 30 Old Broad Street, London  EC2N 1HT
Registrars Capita IRG PLC  
 Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU
Group Board  
Directors and Advisers 17 17
Group Board  
Executive Director Biographies
John Haynes (age 70). John’s biography is the history of Haynes 
Publishing. He founded the Company in 1960 and by expanding 
operations into Europe and the USA, was responsible for its 
growth and development into the international business that 
we see today. The Company was taken public in 1979. John 
remains its principal and majority shareholder and takes a very 
active interest in all aspects of the Group’s publishing activities. 
In 1985 he founded and is the principal benefactor of the Haynes 
International Motor Museum. In 1995 he was awarded the OBE 
for services to publishing.
Eric Oakley (age 62). Eric spent his early years in North East 
England, and was educated at the University of Aston. He is 
resident in California. Eric joined Haynes North America, Inc. in 
1980 after 16 years with Burmah-Castrol. He was appointed to 
the Main Board of Haynes Publishing Group in 1990. For the past 
22 years Eric has been President of Haynes North America, Inc. 
during which period Haynes Manuals have become the largest 
selling Automotive Repair Manuals in the United States and 
Canada. He oversaw the establishment of Haynes’ Australian 
operation, which has recently been further expanded.  
Eric was appointed Group Chief Executive on 1st June 2002.
J Haynes (age 41). J joined the Board as a non-Executive 
Director on 25th March 2000, having completed a two year MBA 
at the London Business School. He was formerly a Director at 
Beeson Gregory, a specialist investment bank, before which he 
worked for 5 years as a Graduate Trainee with Haynes North 
America, Inc. On 28th January 2002 he was appointed an 
Executive Director of the Company and is presently Managing 
Director of its UK and European operations. On 2nd June 2008 
J was appointed Group Vice Chairman.
Dan Benhardus (age 62). Dan was appointed as Group 
Finance Director on 1 June 2002. He is resident in California 
and is a Certified Public Accountant. He started his career 
with Arthur Young and Co. (now part of Ernst & Young) before 
going into private industry where he gained experience in the 
construction, cable television and market research industries as 
an accounting and finance executive. In 1988 he joined Haynes 
North America, Inc. as the Vice President of Finance. He retains 
his responsibilities as the Chief Financial Officer and Senior Vice 
President of Haynes North America. 18 18
Group Board Non-Executive 
Director Biographies
D W Suter (age 70). David Suter is a Chartered Accountant who 
joined the board in 1990 before which he was a partner in Baker Tilly. 
He was formerly a member of the Corporation of Yeovil College during 
which time he was Chairman of the Audit Committee. David Suter 
does not have a service contract with the Company.
R P Corbett (age 70). Panton Corbett was an executive director of 
Singer & Friedlander Limited from 1972 to 1998 and was responsible 
for the flotation of the Group on the London Stock Exchange in 1979. 
He was Chairman of the Alternative Investment Market of the London 
Stock Exchange (AIM) from its inception until 1998. He is a non-
Executive director of South Staffordshire Water plc. Panton Corbett 
does not have a service contract with the Company.
E Bell (age 59). Eddie Bell has held a number of senior positions 
spanning 30 years in book publishing. Latterly he was the Executive 
Chairman and Publisher for Harper Collins UK and during his tenure was 
responsible for publishing the memoirs of both Mikhail Gorbachev and 
Lady Thatcher, and the autobiography of John Major. He is now a partner 
in Bell Lomax Moreton. Additionally, he holds several other non-Executive 
positions both within and outside the publishing industry which include 
Be Cogent Communications Ltd., and Management Diagnostics Ltd. 
Eddie Bell does not have a service contract with the Company.
A Garner (age 64). Andrew Garner is presently CEO of the Executive 
Search Consultancy, Garner plc. He has worked in executive search 
since 1983 and until 1997 was Chairman and Chief Executive of one of 
the world’s foremost search firms, Boyden World Corporation. During 
that time Boyden’s revenue more than doubled. Prior to this Andrew 
enjoyed a successful international business career, including senior 
positions with Mars, Brooke Bond and Gallaher. He is on the Board 
of the Royal Philharmonic Orchestra and is a trustee of the Haynes 
International Motor Museum. Andrew Garner does not have a service 
contract with the Company.
M E F Haynes (age 40). Marc Haynes completed a BSC (Hons) 
Business Degree at Manchester before joining the Haynes International 
Motor Museum as its Business Development Manager. Marc has 
made a considerable contribution to the museum, having successfully 
completed a number of innovative commercial ventures. He is now its 
Managing Director. Marc is also a Director of Haynes Developments 
Limited which is a property development, management and investment 
company operating in the UK. Marc Haynes does not have a service 
contract with the Company. 19 19
Report of the Directors
The Directors present their report and the financial statements of the 
Group for the year ended 31 May 2008.
• Principal activity Haynes Publishing Group P .L.C. is a holding company. The principal 
activity of Group companies is the printing and publishing of a range of service and repair 
manuals for the motor, home DIY, and transport enthusiast, together with a wide range of 
specialist books and general interest publications. Through the acquisition of Vivid Holding 
BV in February 2008, the Haynes Group has become a leading European supplier of digital 
technical information to the motor trade, thereby broadening the Group’s business to include 
professional as well as DIY mechanics and enthusiasts.
• Review of the business A review of the business, together with comments on the key 
performance indicators and future development of the Group, is contained in the Chairman’s 
Statement and the Group Chief Executive’s Review on pages 8 to 15.
• Financial results The financial results for the year are set out in the consolidated income 
statement on page 37. The position at the end of the year is shown in the consolidated 
balance sheet on page 39.
• Dividends The Directors recommend a final dividend of 10.5p per ordinary share (11.7p 
with related tax credit) which, together with the interim dividend already paid, makes a total 
of 15.5p (17.2p with related tax credit) for the year (2007: 15.5p; 17.2p with related tax 
credit). This dividend will be payable on 30 October 2008 to members on the register of 
shareholders at the close of business on 3 October 2008. The shares will be declared 
 ex-dividend on 1 October 2008.
• Principal risks and uncertainties The Board is primarily responsible for identifying and 
monitoring risk and the manner in which the Board manages this process is outlined in the 
Corporate Governance report on pages 26 and 27. The Group’s principal financial risks and 
uncertainties are outlined in note 19 to the financial statements and the principal operational 
risks and uncertainties are discussed as part of the Group Chief Executive’s Review on 
pages 10 to 15.
• Directors The Directors who served during the year and their interests in the ordinary share 
capital of the Company are shown on the following page.
 J H Haynes, D Benhardus and E Bell retire by rotation in accordance with the Articles of 
Association and, being eligible, offer themselves for re-election.
 R P Corbett and D W Suter as Non-Executive Directors having served for more than nine 
years both offer themselves for re-election in accordance with the provisions of the 2006 
Combined Code.
 There have been no other changes in the Directors or their shareholdings shown below up to 
8 August 2008.
 At 31 May 2008 the beneficial shareholdings of the Directors represented 62.1 per cent of 
the total issued share capital. This represented 15.7 per cent of the Ordinary shares (which 
are listed on the London Stock Exchange) and 100 per cent of the ‘A’ Ordinary shares. 20 20
• Share capital and related matters Details of the Authorised and Issued share capital are  
 shown in Note 21 to the consolidated financial statements. 
 Both the ‘A’ Ordinary shares and the Ordinary shares carry equal voting rights of one vote  
 per share where a matter is decided other than on a show of hands. Both classes of share  
 rank ‘pari passu’ (including any distribution by way of dividend and on a return of capital),  
 save that a transfer of ‘A’ Ordinary shares will not be permitted by the Directors other than  
 to a member of the holder’s immediate family or to family settlements. The holders of   
 ‘A’ Ordinary shares may convert such shares into Ordinary shares at the rate of one Ordinary  
 share for each ‘A’ Ordinary share, subject to the further provisions of the Articles of   
 Association and the Companies Acts.
 The ‘A’ Ordinary shares represent 55% of the total issued capital, and the Ordinary 
 shares 45%.
 Other than as expressed above, there are no specific restrictions on the size of a holding nor  
 on the transfer of shares, which are both governed by the general provisions of the Articles  
 of Association and prevailing legislation.
 With regard to the appointment and replacement of Directors, the Company is governed by  
 its Articles of Association, the Companies Acts, the Combined Code, and related legislation.
 The powers of the Directors are more specifically described in the Main Board Terms of  
 Reference and the Statement of Corporate Governance (page 23). At the AGM on 
 18 October 2007:
 (i) the Company was authorised to make purchases of its own shares up to a maximum of  
 1,500,000. The authority remains unexercised and will expire at the conclusion of the AGM  
 in 2008, if not reviewed, and
 (ii) the Directors were authorised to allot unissued shares under S.80 Companies Act 1985  
 up to £479,692 and under S.89 of the Companies Act 1985 up to £163,515.
• Directors’ Interests in Shares The Directors who served throughout the year and their   
 interests in the share capital of the Company are as follows:
  31 May 2008     31 May 2007
 Beneficial Beneficial  Non-Beneficial  Beneficial Beneficial  Non-Beneficial
 ‘A’ Ordinary Ordinary  Ordinary  ‘A’ Ordinary Ordinary  Ordinary
 No. No.  No.  No. No.  No.
Executive   
   
J H Haynes 9,000,000 401,075 
[3]
 1,229,101 
[1][2]
 9,000,000 401,075  
[3]
 1,229,101  
[1][2]
E Oakley – 23,304  –  – 23,304  – 
D Benhardus – –  –  – –  –
J H C Haynes – 710,141  
[2]
 –  – 710,141  
[2]
 –
Non-Executive 
[4]
M E F Haynes – 699,767  
[2]
 
–
  
–
 
699,720  
[2]
 
–
A Garner – –  630,000  
[1]
 – –  630,000  
[1]
[1]
  630,000 shares are in respect of the Haynes International Motor Museum (a charitable trust) 
and are shares in which J H Haynes and A Garner are interested as Trustees.
[2]
  The balance of the ordinary shares comprised within the non-beneficial interest of J H 
Haynes is held in a family trust in which J H C Haynes and M E F Haynes have a beneficial 
interest, and are therefore also reported as a beneficial interest of the latter.
[3]
  Includes 306,075 shares owned by Mrs A C Haynes.
[4]
  R P Corbett, D W Suter and E Bell did not hold shares in the Company at any time during the year.
Options to subscribe for ordinary shares under the terms of the Executive Share Option 
Scheme are described in the Board Report on Remuneration. Directors’ interests in contracts 
with the Group companies are shown in Note 23 to the consolidated financial statements.
Report of the Directors 
(continued) 21 21
Report of the Directors (continued)
 The S.80 amount is the total of the authorised but as yet unissued share capital of the  
 Company, and represents 14.67% of the issued share capital; the S.89 amount is 5% of the  
 issued share capital.
 Excepting general commercial and trading agreements which may contain provisions that  
 take effect, alter or terminate, upon a change of control of the Company, the Directors are  
 not aware of any significant such agreements to which the Company is a party. Furthermore  
 the Directors are not aware of any agreements between the Company and its Directors or  
 employees that provide for compensation upon the receipt by the Company of a 
 takeover bid.
• Other shareholdings At 31 May 2008 interests in 3% or more of the Company’s issued  
 Ordinary 20p share capital* had been notified to the Company by:
  Shares % Class
 Hunter Hall Investment Management Limited 2,302,567 31.3
 Axa Framlington S.A.    700,000 9.5
 Haynes International Motor Museum    630,000   8.6
 Royce & Associates 419,000 5.7
 Phoenix Asset Management Partners Ltd    403,675   5.5
 Insight Investment 304,564 4.1
 The interests of those Directors who have major shareholdings are detailed in the table of  
 Directors’ interests in shares on the previous page.
 At 8 August 2008, there were no recorded changes in these holdings.
 *See Note 21.
• Treasury management The Group’s principal financial instruments, other than   
 derivatives, comprise bank overdrafts, lease financing arrangements, cash and other various  
 items arising from its operations such as trade receivables and trade payables. The main  
 purpose of these instruments is to finance the Group’s working capital requirements as well  
 as funding its capital expenditure programmes. From time to time the Group may enter into  
 derivative transactions such as interest rate swaps or forward exchange contracts, the  
 main purpose of such transactions is to manage the interest rate and currency risks   
 arising from the Group’s operations and sources of finance. No such transactions were  
 undertaken during the current or preceding financial year. No trading in financial instruments  
 is undertaken.
 The Group’s principal borrowings are in US dollars and pounds sterling, and at the year end  
 were subject to floating rates of interest. Fixed interest rates and interest caps are regularly  
 considered and, where felt commercially appropriate, would be adopted to manage the  
 interest rate exposure.
 Further details of the Group’s Treasury Management policies and financial instruments can  
 be found in Note 19 of the Notes to the Consolidated Financial Statements.
• Donations During the year Group donations to charitable organisations amounted to  
 £15,282. There were no political donations in the year.
• Environmental policy The Board is committed to minimising the impact its operations have  
 on the local environment. The Group operates two printing facilities, one in the UK and one  
 in the US, and it is Group policy to ensure that both national and local environmental laws  
 and guidelines are adhered to in full. The Board ensures that key management are tasked  
 with the responsibility to oversee the Group’s activities which impact the environment and to  
 report back to the Board with any recommendations they may have regarding 
 environmental policy.
• Disabled persons The Group encourages the employment of disabled persons whenever  
 practicable. The Group policy is to ensure that disabled employees and those who may  
 become disabled benefit from training and career development in common with 
 other employees. 22 22
• Employees, and health & safety The Group involves employees by providing them with  
 information which concerns them, consults with them and considers their views when  
 making decisions which affect their interests and generally discloses matters affecting the  
 Group’s performance through company briefings. 
 During the year J H Haynes & Co Ltd gained the British Safety Council International Safety  
 Award for safety standards for the tenth consecutive year. The award is made to companies  
 who have lower than average accident rates, good safety policies and safety plans and  
 a clear commitment to health and safety at the highest board level. Companies must detail  
 their health and safety advisors’ (and officers’) qualifications and provide details of significant  
 advances in health and safety for the year.
• Policy on payment of suppliers The Group operates in various locations throughout the  
 world. It is not Group policy to follow any specified code or standard on payment practice  
 but the payment policies adopted reflect the terms negotiated with individual suppliers as well  
 as the custom and practice of the locality. It is the Company’ s intention to continue to apply the  
 Group policy in the forthcoming year. At 31 May 2008 the amount of trade creditors as shown  
 in the balance sheet represents 25 days of average purchases for the Company and 42 days for  
 the Group.
• Auditors In accordance with S.489 of the Companies Act 2006, a resolution will be   
 proposed at the forthcoming Annual General Meeting to re-appoint BDO Stoy Hayward LLP  
 as auditors of the Company and to authorise the Directors to determine their remuneration.
• Audit information Each of the Directors confirm that they have taken all the steps   
 that they ought to have taken to make themselves aware of any information needed by the  
 Company’s auditors for the purposes of their audit and to establish that the auditors are  
 aware of that information. The directors are not aware of any relevant audit information of  
 which the auditors are unaware.
 By order of the Board.
James Bunkum
Group Company Secretary 
4 September 2008
Report of the Directors (continued) 23 23
Corporate Governance
Statement of compliance
The Board of Haynes Publishing Group P .L.C. recognises the importance of high standards 
of Corporate Governance. Accordingly, it has considered the principles and provisions of the 
Combined Code on Corporate Governance (the Combined Code) issued by the Financial 
Services Authority in June 2006 and will continue to manage its affairs in line with the principles 
where it is in the interests of the business, and of shareholders, to do so. Other than where 
expressly stated, the company has complied with the principles, supporting principles and 
provisions of the Combined Code throughout the year under review.
Board of directors
During the year the Board reviewed its Terms of Reference which lay precise emphasis upon its 
responsibility for the overall management and strategic direction of the Group. The Board aims 
to encourage entrepreneurial endeavour within a framework of prudent planning and control. 
The Board appraises and approves major financing, investment and contractual decisions 
in excess of defined thresholds. All members of the Board are cognisant of their duty to act 
collectively and objectively in the best interests of the Company. Non-Executive Directors are 
members of the Audit Committee and the Remuneration and Nomination Committee, and 
are responsible for their activities. The Non-Executive Directors are intrinsically involved in 
scrutinising and monitoring the performance of management, and assessing the processes 
for the control of financial and other risks. The Terms of Reference for the Committees may be 
viewed on www.haynes.co.uk/investors.
• As at 31 May 2008 the Board comprised of four Executive and five Non-Executive Directors.  
 The biographies of the Directors are set out on pages 17 and 18 of this report and accounts.
• The Board meets at regular intervals of approximately two months to determine and monitor  
 corporate strategy, to review the trading and financial performance of the Group and to   
 consider matters specifically reserved for its approval. The following table details the number  
 of board and committee meetings held during the year and the attendance record of the  
 individual directors:
    Remuneration &
  Board Audit Committee Nomination Committee
  meetings meetings meetings
 Number of meetings in year 6 2 1
 J H Haynes 6  1
 E Oakley 6
 D Benhardus 6
 J H C Haynes 6
 R P Corbett 5 2 1
 D W Suter 5 2 1
 E Bell 5 2 1
 M E F Haynes 6
 A Garner 3
 
• The division of responsibility between the Chairman and the Group Chief Executive is clear  
 and understood, and will be committed to writing in due course as required by provision  
 A.2.1  of the Combined Code. The former is responsible for the leadership of the Board  
 and ensuring its effectiveness and that of the individual Directors, and the Chief Executive’s  
 duty is to run the business.
• The Non-Executive Directors occasionally hold meetings informally without the Executive  
 Directors present. Likewise, the Chairman occasionally meets with the Non-Executive  
 Directors without the Executive Directors present.
• The Directors are able to take independent professional advice in the furtherance of their  
 duties at the Group’s expense and all Directors have access to the advice and services of  
 the Group Company Secretary.
• The Board considers all of its current Non-Executive Directors to be independent excepting  
 M E F Haynes, in view of his close family ties with other members of the Board and his  
 significant interest in shares. 
Report of the Directors (continued) 24 24
 The Board defines an independent Director as one who has no relationship with any   
 company within the Group or its management which may undermine independence   
 and who is not dependent on the Group or its management for his or her primary source of  
 income, and was not within the last five years a senior manager within the Group, and does  
 not participate in the Group’s incentive bonus schemes or pension schemes.
 The Senior Independent Director is R P Corbett. Both he and D W Suter have served on  
 the Board for more than nine years. A Garner is a trustee of the Haynes International Motor  
 Museum Charitable Trust. Notwithstanding these circumstances or relationships, the Board  
 believes these Directors are independent in character and judgement. 
• Membership of the Committees of the Board is indicated on page 16. At Committee   
 meetings no-one except the Chairman of the Committee and its members is entitled to be  
 present – but others may attend by invitation.
• Executive Directors may be permitted to take a limited number of outside Non-Executive  
 Directorships in non-competing companies, subject to approval of the Remuneration and  
 Nomination Committee.
Information, professional development and evaluation
All Directors are provided with regular performance updates, and full and timely access to 
information that enables them to make informed decisions on corporate and business issues. 
The Board receives monthly Management Accounts explaining performance against budget for 
each sector of the business, as well as risk management and business plans. The Executive 
Directors receive information on sales and margin for the individual businesses within the Group 
on a weekly basis, and for the major businesses such information can be accessed daily.
Directors are encouraged to regularly update and refresh their skills and knowledge on the 
basis that ‘all development is self development’. The Group Company Secretary is responsible 
through the Chairman for facilitating the training and induction of newly appointed Directors, 
and ensuring that they are familiar with the Company’s operations and their own duties and 
responsibilities. He is also responsible for advising the Board through the Chairman on all 
governance and legal matters.
During the year the Board has undertaken a formal appraisal of its own performance and 
processes and that of its committees, including a review of each committee’s composition and 
operating procedures.
Through a combination of personal discussions, general observation and ongoing monitoring 
of performance, the contribution of each individual Director has been assessed by the 
Chairman against expected standards. The process of ongoing monitoring and review helps 
the Chairman to ensure that the contribution of the Directors continues to be to the agreed 
standards relevant to the Group’s business and organisation. 
In turn, the Chairman’s own performance has been reviewed by the Senior Independent Director 
following consultation with his fellow non-Executive Directors and other members of the Board.
According to the Articles of Association all Directors should seek re-election by shareholders 
at regular intervals of no more than three years. Directors are also subject to re-election by 
shareholders at the first AGM after their appointment.
Directors remuneration, contracts and nomination
• In accordance with the provisions of the Combined Code, a Remuneration and Nomination  
 Committee with its own terms of reference has been established by the Board. The   
 Board’s Report on Remuneration, which follows on pages 28 to 33, sets out details of the  
 Group’s policy on remuneration, Directors remuneration, and the work of the Remuneration  
 and Nomination Committee. This includes an indication and explanation of those areas of  
 non adherence to the provisions of the Combined Code.
• The Remuneration and Nomination Committee is responsible for succession planning and  
 recommending to the Board the appointment of new Directors. The Board formally vets  
 and scrutinises these proposals. The Committee’s composition is explained in the Board’s  
 Report on Remuneration. Traditionally the Committee has been reliant upon its own energies  
Corporate Governance (continued) 25 25
 and judgement in sourcing and evaluating candidates for vacancies on the Board. External  
 search consultants and open advertising have not been preferred methods where the  
 expense has been unwarranted and could not be justified.
• All Executive Directors have rolling service contracts with the Company terminable on  
 either one or two years notice, which in all cases may be served by either party. For recent  
 appointments a one year term of notice has been implemented as a matter of course 
 (see pages 31 and 32).
• The Non-Executive Directors do not have service contracts with the Company but are  
 usually appointed at the will of the Board for a fixed period of two years.
Dialogue with shareholders
• The Directors consider that clear and timely communication of information to Shareholders  
 is an important part of their function. The Chairman’s and Group Chief Executive’s reviews  
 on pages 8 to 15 provide a summary of the Group’s trading performance and future outlook.  
 In addition to the publication, twice a year, of the Group’s financial results, there will often be  
 briefings for Shareholders or their representatives – especially following the Group’s interim  
 and preliminary final announcements.
• The Chairman is in a good position to ensure that the views of major Shareholders are  
 communicated to the Board as a whole. Additionally, the Chief Executive provides the Board  
 with a report addressing any matters of concern to Shareholders once a quarter.
• The Board views the Annual General Meeting as an ideal opportunity to communicate  
 with both institutional and private investors alike and confirms its compliance with all the  
 provisions of the Combined Code relating to the constructive use of Annual General   
 Meetings. This year’s Annual General Meeting will be held on 23 October 2008 and all  
 Board Directors (including Committee chairmen) plan to be present and available to 
 answer questions.
Accountability, audit, and Audit Committee
It is the intention of the Board through this report and accounts, and other public reports and 
announcements, to present a balanced and understandable assessment of the Company’s 
position and prospects. The Directors have set out their responsibility for preparing the 
accounts on page 34 of the financial statements.
• An Audit Committee with approved written terms of reference has been established by  
 the Board comprising three of the Non-Executive Directors, at least one of whom has  
 recent and relevant financial experience. During the year the Committee kept under review  
 the effectiveness of the Company’s financial control policies and procedures for assessing  
 and reporting financial risk.
• The Audit Committee is responsible for making recommendations to the Board in relation  
 to the appointment and remuneration of the external auditors. Consequently the Committee  
 is responsible for monitoring the auditors performance, cost effectiveness, independence  
 and objectivity - which it has done throughout the year.
• The Committee is authorised to investigate any matter within its terms of reference and  
 where necessary to obtain external legal or other independent professional advice.
• The Committee meets with the Group’s external auditors at least twice a year to discuss  
 the Group’s framework of controls, Group reporting and other relevant matters. At the  
 conclusion of each annual audit, the Audit Committee receives and considers a report from  
 the Group’s auditors setting out any material findings from their audit of the individual Group  
 companies, and reports to the Board as necessary. The Group Finance Director is also  
 invited to attend all meetings.
• The Committee keeps under review the “Whistleblowing” arrangements across the Group to  
 ensure that procedures are in place for staff to report fraud and similar matters.
• In certain circumstances it is permitted by the Board for the auditors to supply non-audit  
 services (in the provision of tax advice, or on specific projects where they can add value).  
 The Committee has approved and monitored the application of this policy in order to   
 safeguard auditor objectivity and independence.
Corporate Governance (continued) 26 26
Internal controls
By means of the systems and processes outlined below, the Board maintains a sound system 
of internal control to safeguard its assets and the investment of shareholders. The Board has 
overall responsibility for the Group’s system of internal control. However, such a system is 
designed to manage rather than eliminate the risk of failure to achieve business objectives, 
and can only provide reasonable and not absolute assurance against material misstatement 
or loss. At least annually, the Board conducts a review of the effectiveness of these internal 
controls, as described below, and takes the necessary action to remedy any significant failings 
or weaknesses which may be identified by its review.
Financial
• A comprehensive budgeting system is in place with annual budgets requiring approval by  
 the Directors. The results of the trading companies within the Group are reported monthly and  
 compared to plan. The Group reports its financial results to shareholders on a 6 monthly basis.
• Authority limits exist across the Group defining revenue expenditure and the Group has clearly  
 prescribed guidelines for capital expenditure which include detailed appraisal and review, levels  
 of authority and due diligence requirements when businesses or assets are being acquired.
• A report on the Group’s cash flow and treasury position is received by the Directors at every  
 Board meeting.
• In addition (to the extent required to form a statutory audit opinion) the Group’ s financial systems  
 are subject to annual review by the Group’ s external auditors and reportable weaknesses, if any,  
 identified during this annual review process are discussed with the Audit Committee.
Operational
• There is a clearly defined organisational structure which allows the Group’s objectives  
 to be planned, executed, controlled and monitored. The Group is committed to employing  
 suitably qualified staff so that the appropriate level of authority can be delegated with regard  
 to accountability and acceptable levels of risk.
• The Directors and senior management implement the control objectives of the Group 
 through the adoption of defined checks and procedures. These include the review of   
 financial and operational information, the setting up of appropriate authority levels, the  
 segregation of incompatible duties and the defining of procedures for seeking and obtaining  
 approval for major transactions and organisational changes.
• The management information systems provide the Directors with relevant and timely reports,  
 from which the Directors can monitor the performance of the business. Furthermore the  
 Executive Directors have a significant involvement in the day to day management of   
 the Group’s activities and accordingly are able to monitor and control procedures at an  
 operational level.
Compliance
• Effective health and safety and quality control procedures operate to meet or exceed the  
 standards for approval set by external regulatory bodies.
• The quality control system used is in accordance with ISO 9000 guidelines, and is constantly  
 being evolved and refined to reflect business advances, process changes, and 
 quality issues.
• Litigation and claims by or against the Company are controlled by Senior Management, with  
 the assistance of external counsel as required. The Directors are kept informed and are able  
 to stay abreast of events.
Risk management
• The Board has the primary responsibility for identifying the major business risks facing the  
 Group and developing appropriate policies to manage those risks. These policies are used  
 both by the Directors and by senior management to determine the key control procedures  
 for each area of risk identified by the Board and the degree of information required to   
 safeguard the business and the assets used within it.
Corporate Governance (continued) 27 27
Corporate Governance (continued)
• It is accepted that risk is itself prevalent in any commercial enterprise and that it must be the  
 objective of the Group’s management and staff to be prudent in the acceptance and control  
 of risk incurring activity, rather than aiming to eliminate it entirely. Thus the reporting systems  
 can only provide reasonable and not absolute assurance against damage or loss resulting  
 from business activities.
• Through day to day management disciplines, face to face meetings, regular written   
 reports, and monitoring systems, the Group evaluates and mitigates unnecessary risks.
• In addition, there are a number of areas of the Group’s business where it is necessary to  
 take risks in order to strive for satisfactory profitability and returns to shareholders. The  
 publication both of workshop manuals and books of special and general interest engenders  
 commercial and publishing risk requiring close evaluation by editors and editorial committees  
 with an in-depth knowledge of their subject and their markets.
• For the financial year ended 31 May 2008, the Board has satisfied itself that there was  
 in place an ongoing process for identifying, evaluating, and managing the significant risks  
 faced by the Group as a whole. This process has been formally structured by means of  
 documentary reporting directly to the Board in accordance with the guidance provided by  
 the Turnbull Committee, both in the UK & Europe and US. Risks identified by this process  
 are regularly reviewed by the Board and addressed jointly by the Group Chief Executive and  
 Directors drawing upon the skills of senior management as necessary. The Board monitors  
 this process and is satisfied that, given the size of the Group, and the nature of its 
 operations, this process is sufficient to meet its needs without unduly fettering   
 entrepreneurial activity, and that (in accordance with the recommendation of the Audit  
 Committee) a separate internal audit function is not required.
Going concern
• After making enquiries, the Directors have a reasonable expectation that the Company and  
 the Group have adequate resources to continue operations for the foreseeable future.  
 For this reason, they continue to adopt the going concern basis in preparing the 
 financial statements. 28 28
1 Best practice 
This report to shareholders provides information on the remuneration of all Directors of 
the Haynes Publishing Group P .L.C. and the criteria by which that remuneration has been 
determined. It has been prepared in accordance with the requirements of The Companies Act 
1985 and the applicable UK Listing Authority’s Listing Rules.
2 Constitution of the Remuneration and Nomination Committee
The Committee comprises three independent Non-Executive Directors, R P Corbett (Chairman 
of the Committee), D W Suter, E Bell and the Executive Chairman J H Haynes. Whilst J H 
Haynes is not independent of management, as required by B.2.1 of the Combined Code, 
in considering the composition of the Committee, the Board gave full consideration to the 
other provisions of the Combined Code and in particular, B.2 which states that Remuneration 
Committees should consult with the Chairman and/or the Group Chief Executive about their 
proposals relating to the remuneration of the other Executive Directors. Having considered 
the Committee’s terms of reference, the constitution of the Group Board and the frequency of 
meetings, the Board felt it practical to include the Chairman as a member of the Committee. 
Any changes affecting his remuneration are discussed by the Committee without his 
participation.
3 Policy on directors’ remuneration 
The Committee is responsible for determining the emoluments of the Executive Directors of 
the Group. The Committee frames its decisions to ensure that the Group’s Executive Directors 
are appropriately rewarded for their contributions to the Group whilst reflecting their scale of 
responsibility and performance. Through monitoring the market place and the occasional use 
of external advisers the Committee seeks to offer remuneration packages which not only reflect 
current market conditions but are also commensurate with attracting, retaining and motivating 
Directors of quality to ensure the continued growth and success of the Group. During the year 
under review the committee has not used the services of external advisers.
In this, the Committee is mindful of the need to use external comparables with caution and 
to be sensitive to pay and employment conditions elsewhere in the Group. However it is 
impractical for the Committee also to monitor in detail the remuneration of senior management 
below board level as required by B.2.2 of the Code and therefore, their remuneration packages 
are reviewed by the Executive Director responsible for their particular business unit.
It is the Committee’ s policy to ensure that there is a strong link between the level of Executive 
Directors’ remuneration and the performance both of the Group and its individual trading 
companies. Thus each Executive Director can significantly augment a relatively modest basic salary 
through the performance related bonus/incentive arrangements. The Committee has considered the 
appointment of permanent external consultants; however given the combined experience resting 
in the Committee members and bearing in mind the considerable costs of appointing permanent 
consultants, it is thought preferable that such an appointment should not be made.
4 Directors’ remuneration 
(i) Total emoluments
(a) The total emoluments of the Directors of the Company were as follows:
  2008 2007
  £000 £000
Salaries and taxable benefits  621 623
Performance related bonuses  334 337
  955 960
Non-Executive Directors’ fees  110 99
Total emoluments  1,065 1,059
Pension contributions  205 208
  1,270 1,267
Board Report on Remuneration 29 29
(b) The following categories comprise the principal elements of Executive Directors’  
remuneration at present:
• Basic salaries, and fixed benefits
• Annual bonus
• Pensions
Each of these elements is viewed with equal importance by the Committee so as to ensure 
that the remuneration packages reflect not only the short term but also the longer term goals 
of the Company and of the Group. Consequently, although contrary to Schedule A, item 6 of 
the Combined Code Provisions, the Committee believes that, as the performance bonus is an 
integral part of the Executive Directors’ remuneration package and as it is and always has been 
for many years part of their employment contracts, it is proper for this amount to form part of 
the Directors’ pensionable salary. Pensionable salary is defined under the UK pension scheme 
rules as the amount declared to the Inland Revenue on an individual’s P60.
Each element of remuneration payable to Executive Directors is discussed in more detail below 
and tabulated later in this Report.
Non-Executive Directors receive a fee for their services, and the reimbursement of incidental 
expenses. No other payments are made.
(ii) Basic salary and benefits
Basic salaries for all Executive Directors are reviewed annually by the Committee. The 
Committee regards the RPI and similar indices of inflation as important but not the sole factor 
that it will consider when reaching its decision.
The standard increase in Executive Directors’ base salaries at 1 June 2007 was 3%. In addition 
each Executive Director is entitled to holiday in accordance with the Company’s policy for full 
time employees.
E Oakley and D Benhardus are provided with a fully expensed car and J H Haynes is entitled to 
a fully expensed car in the US and to the services of a chauffeur and fuel expenses in the UK. J 
H C Haynes is entitled to fuel expenses only.
All Executive Directors receive long term disability insurance and travel insurance, together with 
health cover for themselves and their immediate families.
(iii) Annual bonus
An annual bonus is paid to each Director based on the performance of the overall Group or 
of a substantial component of the Group as follows:
J H Haynes is entitled to 1.5% of the first £4.5 million of the overall Group’s net profit, plus 
2.5% thereafter.
E Oakley is entitled to the following proportion of overall Group net profit: 1.5% of the first £4.5 
million, 2.5% between £4.5 million and £7.5 million, and 3.5% over £7.5 million. This arrangement 
was last subject to review on 1 December 2007 and will be reviewed every two years.
Additionally, E Oakley is entitled to a one time discretionary bonus at an amount to be 
decided by the Chairman in consultation with the Committee in the event that the Group 
disposes of one of the Group’s businesses at a gain entirely attributable to the performance 
of that business.
D Benhardus is entitled to 0.5% of overall Group net profit.
J H C Haynes is entitled to 1% of the net profit of the UK and European businesses. 
For the purposes of the above the ‘net profit’ of the Group is before tax and excluding profits 
of a capital nature and before deductions of bonuses payable to other Executive Directors. 
‘Net profit’ of the UK and European businesses is calculated on the same basis, and before 
the deduction of Group costs.
Board Report on Remuneration 
(continued) 30 30
(iv) Share option scheme
The Company has approval to operate an Executive share option scheme. No such options 
are in existence at the present time.
(v) Pension policy
Each of the Executive Directors has been and continues to be contractually entitled to final 
salary or money purchase related pension benefits as described below.
(a) Defined benefit schemes
The UK scheme
 J H C Haynes is a member of the UK scheme.
 The target pension for this director is currently two-thirds of final pensionable salary at the  
 age of 60. Final pensionable salary is defined as an average of the best three consecutive  
 annual pensionable salaries in the final 10 years of service. The Director contributes 5%  
 of his pensionable pay, as defined under the Scheme rules. Death in service benefits   
 provide for a return of the individual’s contributions made to the scheme, a cash sum equal  
 to 4 times pensionable salary and a widow or dependants pension equal to 50% of the  
 target pension receivable at normal retirement age. For death occurring during retirement a  
 widow’s pension equal to 50% of pension entitlement is payable.
 Pensions increase annually during retirement by the lower of 5% or the percentage rise in  
 the Retail Price Index.
 With the approval of the Pension Scheme Trustees and the Employer, members may retire  
 from the age of 55 on an actuarially reduced pension based on the shorter working life and  
 after taking into account the cost of earlier payments.
The US plan
 J H Haynes, E Oakley and D Benhardus are members of the US Plan. The US Plan  
 provides for a pension that vests in yearly increments reaching a maximum of 50% of  
 final pensionable salary on attaining 7 or more years service with the Company. The final  
 pensionable salary is calculated in a consistent manner to the UK scheme.
 The retirement age for the non-contributory US Plan is 65.
 Death in service benefits provide for a widow or dependants pension equal to the   
 Actuarial Equivalent of the Accrued Benefit at the date of death. For death occurring  
 during retirement a widow’s pension equal to 50% of pension entitlement is payable.  
 In both cases election may be made to receive a cash lump sum, or by instalments, the  
 amounted vested (Actuarial Accrued Benefit).
 Pensions do not increase during retirement.
 There are no provisions for early retirement under the US Plan rules but the vested Actuarial  
 Accrued Benefit may be taken in instalments, as a lump sum or left in the Plan until age 70  
 when, by law, they must be taken.
(b) Defined contribution (‘Money Purchase’) arrangements
 Members whose benefits are capped by legislation participate in additional money purchase  
 arrangements. In the US a scheme has been set up based on the difference between the  
 Company’s actual contributions to the defined benefit scheme and those contributions  
 which would have been paid without the legislative cap. 
Board Report on Remuneration 
(continued) 31 31
(b) Defined contribution (‘Money Purchase’) arrangements (Continued)
 The pensionable cap in the US is $225,000 (£111,940). Under this arrangement the   
 Company made contributions on behalf of E Oakley amounting to $164,236 (£81,709)  
 and D Benhardus $51,718 (£25,730) during the year.  Additionally, in the US there is an  
 Employer Savings Plan (401K pension plan) available to all employees. Under the plan the  
 Company contributes 1.6% of salary as well as matching one third of employees’ deferrals  
 up to a maximum of 6% of salary. During the year, the contributions for E Oakley amounted  
 to $8,100 (£4,030) and for D Benhardus $8,209 (£4,084). In the UK, there is an additional  
 AVC facility for members of the UK Scheme.
5 Performance graph
The following graph compares the total return on the Company’s shares with that of the ‘FTSE 
Small Cap’ index over the last 5 years. This index was chosen following discussion with the 
Company’s stockbrokers, as being the index most representative of the performance of the 
shares of generally comparable companies.
6 Service contracts
The Committee is mindful of the unique characteristics of the Company; its vertical 
integration as both publisher and printer, its product range, its geographical spread, and 
its shareholder base. The Company’s competitive position must be of paramount concern. 
The service contracts for Executive Directors in the UK include a notice period of 12 months 
or less upon termination. Directors who are US based are employed ‘at will’ and there is 
no notice provision. However to ensure reasonable parity with the UK based Directors a 
“notional” notice period applies to the calculation of their entitlements upon termination.  
If the Company terminates without notice or at short notice, the individual is entitled to the 
contractual entitlements and benefits which would have accrued within the notice period. 
With the Company’s consent these may be “rolled up” into a single payment at the point 
of termination.
In the event of termination for cause, the bonus element of remuneration is either not payable 
or payable only at the discretion of the Company.
Board Report on Remuneration 
(continued)
Haynes Publishing (EQ:EUK)
-0.4
73.2
-10
07/2007 01/2008 07/2003 01/2004 07/2004 01/2005 07/2005 01/2006 07/2006 01/2007
Percentage Growth Total Return, Tax Default, in LC
5 Years From 31/05/2003 To 31/05/2008
Percentage Growth 
FTSE Small Cap TR  (IN)
0
10
20
30
40
50
60
70
80
90
100
110
120
130 32 32
7 Directors’ Remuneration for year ending 31 May 2008
The emoluments of the individual Directors were as follows:
 Salary Performance   Total 2007
 and Fees Bonus Benefits  
[1]
 Emoluments Total
 £000 £000 £000  £000 £000
Executive  
   
J H Haynes  143 139 9 291 291
E Oakley
 [2]
 209 139 11 359 366
J H C Haynes 107 19 6 132 128
D Benhardus  124 37 12 173 175
 583 334 38 955 960
Non-Executive
R P Corbett 25 – – 25 24
D W Suter 20 – – 20 20
E Bell 26 – – 26 20
M E F Haynes  19 – – 19 16
A Garner  20 – – 20 19
 110 – – 110 99
Total 693 334 38 1,065 1,059
[1]
 The benefits principally relate to the provision of company cars, fuel and healthcare.
[2]
 Mr E Oakley waived $7,040 (£3,502) of his bonus received in respect of the year ending 31 
May 2007. A profit share contribution of $7,040 was then made by the Company into Mr E 
Oakley’s ‘401K’ pension plan in the USA.
 Director Date of contract Notice period 
 J H Haynes (UK) 29 November 1979 12 months 
 J H Haynes (US) 29 November 1979 6 months 
 E Oakley 30 May 2002 None (24 months notional)
 D Benhardus 31 May 2002 None (12 months notional)
 J H C Haynes  15 February 2002 12 months  
 
E Oakley’s original service contract was renegotiated upon his appointment as Group 
Chief Executive on 1 June 2002. The Committee is well aware of the advice provided in 
the Combined Code at B.1.6 concerning the length of the notice period, and in agreement 
with it, thus all but one of the Directors have notice periods no longer than 12 months. In 
the exceptional case the Committee believes that it is not presently in the interests of the 
shareholders to negotiate an amendment.
The Directors’ service contracts are not of a fixed term, but will continue until terminated by 
either party.
Non-Executive Directors do not hold service contracts and are appointed at the will of the 
board usually for a fixed period of two years. 
Section 4(i)(a) and 4(v)(b) along with the following disclosures (up to and including page 33) 
on Directors’ remuneration have been audited as required by Part 3 of Schedule 7A of the 
Companies Act 1985.
Board Report on Remuneration 
(continued) 33 33
8 Directors’ accrued pension entitlements
        Transfer  
        value of the   
        increase   (Decrease)/
        in accrued   increase in
       Increase in benefit Transfer Transfer transfer
       accrued (excluding  value value value
     Directors’ Accrued benefit inflation) less of accrued  of accrued excluding
  Normal  Years of contributions benefit including Directors’ benefits benefits Directors’
  pensionable  pensionable 2008 2008 inflation contributions 2008 2007 contributions
 [Note] Age Age service £000 £000 £000 £000 £000 £000 £000
J H Haynes US 65 70 26 – 26 3 3 268 245 23
E Oakley US,MP 65 61 26 – 50 4 4 510 437 73
D Benhardus US,MP 65 61 20 – 48 4 4 491 415 76
J H C Haynes UK 60 41 6 6 17 4 3 177 115 62
US  Member of the US Plan
All current year amounts for the US plan have been converted to sterling at the closing rate for the financial 
year. The prior year transfer values of accrued benefits have been stated at the exchange rate ruling at 31 
May 2007. The amounts in US Dollars were as follows:
  2008 2007
  $000 $000
 J H Haynes 529 484
 E Oakley 1,008 864
 D Benhardus 971 820
UK Member of the UK Scheme.
MP  Also participates in a defined contribution (‘Money Purchase’) arrangement (see above).
The accrued benefit shown is that which would be paid annually on retirement age based on 
service to the end of the year.
On 9 May 2007 the UK Scheme adopted a Reduced Scheme Transfer Value in accordance with 
the recommendations of the Scheme Actuary. This was in force at 31 May 2008.
Details of the Committee’s policy on pensions and the pension arrangements themselves are 
provided earlier in this Report.
On behalf of the Board.
James Bunkum
Group Company Secretary
4 September 2008
Board Report on Remuneration 
(continued) 34 34
The Directors are responsible for keeping proper accounting records which disclose with 
reasonable accuracy at any time the financial position of the Company, for safeguarding the 
assets of the Group, for taking reasonable steps for the prevention and detection of fraud 
and other irregularities and for the preparation of a Directors’ Report and Board Report on 
Remuneration which comply with the requirements of the Companies Act 1985.
The Directors are responsible for preparing the annual report and the financial statements in 
accordance with the Companies Act 1985. The Directors are also required to prepare financial 
statements for the group in accordance with International Financial Reporting Standards as 
adopted by the European Union (IFRSs) and Article 4 of the IAS Regulation. The Directors have 
chosen to prepare financial statements for the Company in accordance with UK Generally 
Accepted Accounting Practice.
Group financial statements
International Accounting Standard 1 requires that financial statements present fairly for 
each financial year the group’s financial position, financial performance and cash flows. This 
requires the faithful representation of the effects of transactions, other events and conditions 
in accordance with the definitions and recognition criteria for assets, liabilities, income and 
expenses set out in the International Accounting Standards Board’s ‘Framework for the 
preparation and presentation of financial statements’. In virtually all circumstances, a fair 
presentation will be achieved by compliance with all applicable IFRSs. A fair presentation also 
requires the Directors to:
•  consistently select and apply appropriate accounting policies;
•  present information, including accounting policies, in a manner that provides relevant,  
 reliable, comparable and understandable information; and
•  provide additional disclosures when compliance with the specific requirements in IFRSs is  
 insufficient to enable users to understand the impact of particular transactions, other  
 events and conditions on the entity’s financial position and financial performance. 
Parent company financial statements
Company law requires the Directors to prepare financial statements for each financial year which 
give a true and fair view of the state of affairs of the Company and of the profit or loss of the 
Company for that period. In preparing these financial statements, the Directors are required to:
•  select suitable accounting policies and then apply them consistently;
•  prepare the financial statements on the going concern basis unless it is inappropriate to  
 presume that the Company will continue in business. 
•  make judgements and estimates that are reasonable and prudent; and
•  state whether applicable accounting standards have been followed, subject to any   
 material departures disclosed and explained in the financial statements.
Financial statements are published on the group’s website in accordance with legislation in the 
United Kingdom governing the preparation and dissemination of financial statements, which 
may vary from legislation in other jurisdictions. The maintenance and integrity of the Group’s 
website is the responsibility of the Directors. The Directors’ responsibility also extends to the 
ongoing integrity of the financial statements contained therein.
Statement of Directors’ 
Responsibilities 35 35
Report of the Independent 
Auditors to the members of 
Haynes Publishing Group P.L.C.
We have audited the group and parent company financial statements (the ‘financial statements’) 
of Haynes Publishing Group P .L.C. for the year ended 31 May 2008 which comprise the 
Consolidated Income Statement, the Consolidated Statement of Recognised Income and 
Expense, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement, the Parent 
Company Balance Sheet and the related notes. These financial statements have been prepared 
under the accounting policies set out therein. We have also audited the information in the Board 
Report on Remuneration that is described as having been audited.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the group financial 
statements in accordance with applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union, and for preparing the parent company financial 
statements and the Board Report on Remuneration in accordance with applicable law and 
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting 
Practice) are set out in the Statement of Directors’ Responsibilities. Our responsibility is to audit 
the financial statements and the part of the Board Report on Remuneration to be audited in 
accordance with relevant legal and regulatory requirements and International Standards on 
Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view 
and whether the financial statements and the part of the Board Report on Remuneration to 
be audited have been properly prepared in accordance with the Companies Act 1985 and 
whether, in addition, the group financial statements have been properly prepared in accordance 
with Article 4 of the IAS Regulation. Additionally, we report to you whether, the information given 
in the Report of the Directors is consistent with those financial statements. We also report to 
you if, in our opinion, the Company has not kept proper accounting records, if we have not 
received all the information and explanations we require for our audit, or if information specified 
by law regarding Directors’ remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance 
with the nine provisions of the 2006 Combined Code specified for our review by the Listing 
Rules of the Financial Services Authority, and we report if it does not. We are not required to 
consider whether the board’s statements on internal control cover all risks and controls, or form 
an opinion on the effectiveness of the group’s corporate governance procedures or its risk and 
control procedures.
We read other information contained in the Annual Report and consider whether it is consistent 
with the audited financial statements. The other information comprises only the Chairman’s 
Statement, the Group Chief Executive’s Review, the Report of the Directors, the Corporate 
Governance Statement and the unaudited part of the Board Report on Remuneration. We 
consider the implications for our report if we become aware of any apparent misstatements or 
material inconsistencies with the financial statements. Our responsibilities do not extend to any 
other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for 
no other purpose. No person is entitled to rely on this report unless such a person is a person 
entitled to rely upon this report by virtue of and for the purpose of the Companies Act 1985 or 
has been expressly authorised to do so by our prior written consent. Save as above, we do not 
accept responsibility for this report to any other person or for any other purpose and we hereby 
expressly disclaim any and all such liability. 36 36
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and 
Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures in the financial statements and 
the part of the Board Report on Remuneration to be audited. It also includes an assessment 
of the significant estimates and judgments made by the Directors in the preparation of the 
financial statements, and of whether the accounting policies are appropriate to the Group’s and 
Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which 
we considered necessary in order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements and the part of the Board Report on Remuneration to be 
audited are free from material misstatement, whether caused by fraud or other irregularity or error. 
In forming our opinion we also evaluated the overall adequacy of the presentation of information in 
the financial statements and the part of the Board Report on Remuneration to be audited.
Opinion
In our opinion:
• the group financial statements give a true and fair view, in accordance with IFRSs as   
 adopted by the European Union, of the state of the group’s affairs as at 31 May 2008 and of  
 its profit for the year then ended; and
• the group financial statements have been properly prepared in accordance with the   
 Companies Act 1985 and Article 4 of the IAS Regulation; and
• the parent company financial statements give a true and fair view, in accordance with United  
 Kingdom Generally Accepted Accounting Practice, of the state of the parent company’s  
 affairs as at 31 May 2008; and
• the parent company financial statements and the part of the Board Report on Remuneration  
 to be audited have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Report of the Directors is consistent with the financial statements.
 
BDO Stoy Hayward LLP
Chartered Accountants, Registered Auditors
Southampton 
4 September 2008
Report of the Independent 
Auditors to the members of        
Haynes Publishing Group P.L.C. 
(continued) 37 37
Financial Statements
  Consolidated Income Statement  
  Year ended 31 May 2008 
       2008 2007
       £000 £000
  Continuing operations  
 Note 2 Revenue     31,122  29,202 
  Cost of sales     (12,050) (10,498) 
  Gross profit     19,072  18,704 
  Other operating income     75  53 
  Distribution costs     (7,345)  (7,437)   
  Administrative expenses     (4,835)  (4,169) 
 Note 4 Operating profit      6,967   7,151 
 Note 6 Finance income      1,518  1,104 
 Note 7 Finance costs     (1,400)  (1,174) 
  Profit before taxation      7,085     7,081 
 Note 8 Taxation     (2,043)  (1,913) 
  Profit for the period from continuing operations    5,042     5,168 
  Discontinued operations  
 Note 9 Loss for the period from discontinued operations    –  (2,946) 
  Profit for the period       5,042     2,222 
  Attributable to:   
  Equity holders of the parent     5,041  2,222 
  Minority interests     1  –   
       5,042 2,222 
 Note 10 Earnings per 20p share – pence  
  Earnings per share from continuing operations  
     – Basic     30.8 31.6 
     – Diluted     30.8 31.6 
  Earnings per share from continuing and discontinued operations  
   – Basic     30.8 13.6 
              – Diluted     30.8 13.6 
  Loss per share from discontinued operations  
              – Basic      –  (18.0) 
              – Diluted     –  (18.0) 
     38 38
Financial Statements
  Consolidated Statement of Recognised Income and Expense     
  Year ended 31 May 2008  
       2008 2007 
       £000 £000 
  Exchange differences on translation of foreign operations   284  (940) 
  Actuarial gains/(losses) on retirement benefit obligation   
  - UK Scheme     723  474  
  - US Scheme     (625)  919  
  Deferred tax on retirement benefit obligation     
  - UK Scheme     (202)  (142) 
  - US Scheme     250  (368) 
  Net income/(expense) recognised directly in equity    430     (57) 
  Profit for the financial period     5,042  2,222  
  Total recognised income for the financial period    5,472     2,165 
  Attributable to:  
  Equity holders of the parent      5,471   2,165 
  Minority interests      1   -   
        5,472   2,165   39 39
Financial Statements
  Consolidated Balance Sheet  
  As at 31 May 2008  
       2008 2007
        £000  £000
  Non-current assets  
 Note 12 Property, plant and equipment     8,240  6,763  
 Note 13 Intangible assets     11,688  4,359  
 Note 18 Deferred tax assets     2,566 2,802  
        22,494     13,924  
  Current assets  
 Note 14 Inventories     11,114  10,810  
 Note 15 Trade and other receivables     11,733  9,801  
 Note 16 Cash and cash equivalents     2,506 6,478  
  Total current assets      25,353     27,089 
  Total assets      47,847     41,013  
  Current liabilities   
 Note 17 Trade and other payables     (4,832)  (3,857) 
  Current tax liabilities     (570)  (879) 
 Note 16 Bank overdraft      (2,310)     –    
  Total current liabilities      (7,712)     (4,736) 
  Non-current liabilities   
 Note 17 Other creditors     (67)  (135) 
 Note 18 Deferred tax liabilities     (1,392)  (384) 
 Note 20 Retirement benefit obligation     (6,794)  (6,909) 
  Total non-current liabilities      (8,253)     (7,428) 
  Total liabilities      (15,965)     (12,164) 
  Net assets     31,882     28,849  
  Equity   
 Note 21 Share capital     3,270  3,270  
 Note 22 Share premium reserve     638  638  
 Note 22 Retained earnings     29,018 26,283  
 Note 22 Foreign currency translation reserve     (1,058)  (1,342) 
  Equity attributable to equity holders of the parent   31,868     28,849  
 Note 22 Minority interests     14  –    
  Total equity      31,882     28,849 
   The financial statements were approved by the board of directors and authorised for issue   
  on 4 September 2008 and were signed on its behalf by:
  J H Haynes OBE
  E Oakley
  Directors 40 40
Financial Statements
  Consolidated Cash Flow Statement  
  Year ended 31 May 2008
       2008 2007 
       £000 £000 
  Net cash generated from operating activities  
 Note 24  -  Continuing operations      6,978 7,557  
 Note 24  -  Discontinued operations     –  (583) 
  Cash generated by operations      6,978     6,974  
  Tax paid     (2,184)  (2,505) 
  Interest received     161  161  
  Interest paid                               (34)                 (29) 
  Net cash generated from operating activities                          4,921              4,601   
  Investing activities    
  Disposal of subsidiary      –  2,780     
  Closure of operation     –  (141)  
  Disposal proceeds on property, plant and equipment   111  –     
  Purchases of property, plant and equipment    (1,997)  (500)  
   Expenditure on purchased software     (57)  – 
 Note 25 Acquisition costs:      
  - Business combinations     (7,010)  –    
  - Deferred consideration     (68)  (208) 
  Net cash used in investing activities     (9,021)     1,931  
  Financing activities  
  Dividends paid     (2,453)  (2,534) 
   Net cash used in financing activities     (2,453)     (2,534) 
 Note 26 Net (decrease)/increase in cash and cash equivalents    (6,553)     3,998  
  Cash and cash equivalents at begining of year    6,478  3,077  
  Effect of foreign exchange rate changes    271  (597) 
 Note 26 Cash and cash equivalents at end of period    196     6,478  41 41
Financial Statements
  Notes to the Consolidated Financial Statements 
  Year ended 31 May 2008 
 1 Principal accounting policies 
 Haynes Publishing Group P .L.C. (the “Company”) is a company domiciled in the United 
 Kingdom. The address of the registered office is given on page 16. The consolidated financial   
 statements of the Company for the year ended 31 May 2008 comprise the Company and its 
 subsidiaries (together referred to as the “Group”). The accounting policies contained below 
 in note 1 and the disclosures in notes 2 to 29 all relate to the Group’s financial statements. 
 The Company has elected to prepare its parent company financial statements in accordance 
 with UK GAAP . The parent company balance sheet can be found on page 74 and the applicable 
 accounting policies of the parent company contained in notes 30 to 42. 
 During the current financial year, the Group has adopted IFRS 7 ‘Financial Instruments: 
 Disclosures’ which is effective for accounting periods beginning on or after 1 January 2007 
 along with the associated amendments to IAS 1 ‘Presentation of Financial Statements’. The 
 main impact of IFRS 7 and the changes to IAS 1 has been to expand the disclosures 
 regarding the Group’s financial instruments and management of capital. Also during the year 
 four interpretations issued by the International Financial Reporting Interpretations Committee 
 have come into force. They are IFRIC 7 ‘Applying the Restatement Approach under IAS 29, 
 Financial Reporting in Hyperinflationary Economies’, IFRIC 8 ‘Scope of IFRS 2’, IFRIC 9 
 ‘Reassessment of Embedded Derivatives’ and IFRIC 10 ‘Interim Financial Reporting and 
 Impairment’. The adoption of these Interpretations has not led to any significant changes in the 
 Group’s accounting policies. 
  Basis of preparation   
 The Group financial statements have been prepared and approved by the directors in 
 accordance with International Financial Reporting Standards (IFRS’s) as adopted by the 
 European Union and as such comply with Article 4 of the EU IAS Regulation. 
 The Group financial statements have been prepared on the historical cost basis, except for the  
 treatment of certain financial instruments and are presented in sterling, with all values rounded   
 to the nearest thousand pounds (£’000) except as indicated otherwise. 
   
  Basis of consolidation   
 The consolidated financial statements incorporate the financial statements of the Company and 
 entities controlled by the Company made up to the reporting date. Control is achieved where 
 the Company has the power to govern the financial and operating policies of an investee entity   
 so as to obtain benefits from its activities.  
 On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at 
 their fair values at the date of acquisition. Any excess of the fair value of consideration over the 
 fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of 
 the fair value of consideration below the fair values of the identifiable net assets acquired 
 (i.e. discount on acquisition) is credited to the consolidated income statement at the 
 date of acquisition. 
 The results of subsidiary undertakings acquired or disposed of in the year are included in the  
 consolidated income statement from the effective date of acquisition or up to the effective date  
 of disposal, as appropriate. Where necessary, adjustments are made to the financial statements  
 of subsidiaries to bring the accounting policies used into line with those used by the Group. 
 Minority interests represent the portion of profit or loss and net assets in subsidiaries that is   
 not held by the Group and is presented within equity in the consolidated balance sheet, 
 separately from the Company shareholders equity. 
 All intra-group transactions, balances, income and expenses are eliminated on consolidation. 
  42 42
Financial Statements
  Notes to the Consolidated Financial Statements 
  Year ended 31 May 2008 
 1 Principal accounting policies (continued)  
  Intangible assets and goodwill   
 All business combinations are accounted for by applying the purchase method. Goodwill arising  
 on consolidation represents the excess of the fair value of consideration over the Group’s   
 interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly  
 controlled entity at the date of acquisition and is included in the balance sheet under the   
 heading of intangible assets. 
 For acquisitions made prior to 1 June 2004, goodwill is recorded on the basis of its deemed   
 cost which represented its carrying value at 1 June 2004 under UK GAAP . 
 The goodwill is allocated to cash generating units and reviewed for impairment at least annually.  
 On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of   
 goodwill is included in the determination of the profit and loss on disposal. 
 If the acquisition consideration is less than the net fair value of the identifiable assets, liabilities   
 and contingent liabilities acquired the gain is recognised immediately in the consolidated 
 income statement. 
 Where applicable adjustments are made to bring the accounting policies of an acquired   
 business into alignment with those of the Group. Any costs associated with reorganising or
 restructuring the  business are charged directly to the consolidated income statement. If at 
 the balance sheet date the fair value of the acquiree’s identifiable assets, liabilities and   
 contingent liabilities can only be established provisionally these values are used. Any   
 adjustments to these values made within 12 months of the acquisition date are taken as   
 adjustments to goodwill. 
 Intangible assets acquired separately are measured on initial recognition at cost. An intangible   
 resource acquired in a business combination is only recognised as an intangible asset if it is 
 separable from the acquired business or arises from contractual or legal rights, is expected   
 to generate future economic benefits and its fair value can be measured reliably. An intangible  
 asset with a finite life is amortised on a straight line basis so as to charge its cost which, 
 in respect of an acquired intangible asset, represents its fair value at the acquisition date, to the 
 consolidated income statement over its expected useful life. An intangible asset with an 
 indefinite or indeterminate life is not amortised but is tested at least annually for impairment and 
 carried at costs less any recognised impairment losses.
 Computer software that is not integral to an item of property, plant and equipment is recognised   
 separately as an intangible asset. Amortisation is provided on a straight line basis so as to   
 charge the cost of the software to the income statement over its expected useful life within   
 the business. 
 The estimated useful lives of assets are as follows: 
  Trademarks, domain names, copyright, know-how   Indeterminite life
  Goodwill    Indefinite life
  Purchased software    5 years 43 43
Financial Statements
  Notes to the Consolidated Financial Statements    
  Year ended 31 May 2008    
      
 1  Principal accounting policies (continued)      
  Revenue recognition    
  Revenue is measured at the fair value of the consideration received or receivable for goods    
  or  services provided in the normal course of business, net of discounts and sales related taxes.   
  The following specific recognition criteria also apply:    
  Revenue from the sale of goods is recognised when the goods are despatched and the    
  significant risks and rewards of ownership are passed to the customer and can be 
  reliably measured.    
  Revenue from the sale of services is recognised when the service has been supplied and    
  the risks and rewards associated with the supply have been passed to the customer. 
   Revenue from the sale of licenses under a fixed term and price contract is recognised on a 
  straight line basis over the period of the contract. Revenue from the sale of an individual 
  non-refundable license is recognised once the license has been delivered and the substantial 
  obligations of the vendor have been fulfilled.
  Foreign currencies    
  Transactions in foreign currencies are translated to sterling at the rate ruling on the date of    
  the transaction. Exchange differences arising from the movement in rates between the date of    
  transaction and the date of settlement are taken to the consolidated income statement as 
  they arise.    
  Assets (including goodwill) and liabilities of overseas subsidiaries are translated to sterling at the  
  rate ruling on the balance sheet date. The results of that subsidiary are translated at an average   
  rate of exchange for the year.    
  Exchange gains or losses arising on the translation of the opening net assets of an overseas 
  subsidiary, together with exchange differences arising on the use of the average rate of    
  exchange, are taken to reserves.   
  The foreign exchange rates used in the financial statements to consolidate the overseas    
  subsidiaries are as follows (local currency equivalent to £1):    
     Year-end rate   Average rate 
    2008 2007 2008 2007 
  US dollar  1.98 1.98 2.01 1.93 
  Euro  1.27 1.47 1.38 1.48 
  Swedish krona  11.87 13.67 12.85 13.61  
  Australian dollar  2.07 2.39 2.26 2.47 
  Impairment of non-current assets  
  All non-current assets are tested for impairment whenever events or circumstances indicate    
  that their carrying value might be impaired. In addition, intangible assets and goodwill with an    
  indefinite or indeterminable life are subject to at least an annual impairment test.  
  An impairment loss is recognised to the extent that an asset’s carrying value exceeds its  
  recoverable amount, which will represent the higher of the asset’s fair value less costs to sell 
  and its value in use. An asset’s value in use represents the present value of the future cash    
  flows expected to be derived from the asset. Where it is not possible to estimate the 
  recoverable amount of an individual asset, the impairment review is undertaken in relation to the 
  cash generating unit to which the asset belongs. The recoverable amount of goodwill is 
  determined by reference to the discounted future cash flows of the cash generating unit to    
  which it is allocated.  44 44
Financial Statements
   Notes to the Consolidated Financial Statements    
  Year ended 31 May 2008       
 1  Principal accounting policies (continued) 
  Impairment of non-current assets (continued)
  Impairment losses recognised in previous periods for an asset other than goodwill are 
  reversed if there has been a change in estimates used to assess the asset’s recoverable 
  amount. The carrying amount of an asset shall not be increased above the amount that would 
  have been determined had no loss been recognised in prior periods. Impairment losses 
  recognised in relation to goodwill are not reversed.    
  Impairment losses when recognised are passed through the consolidated income statement.
  Property, plant and equipment  
  Property, plant and equipment are held in the balance sheet at cost (cost comprising the 
  acquisition cost of the asset along with any other attributable costs at the date of acquisition). 
  Depreciation is provided to write off the cost of property, plant and equipment less any 
  estimated current residual values, by equal instalments over their estimated useful lives.    
  Residual values are based on commercial and industry experience and where appropriate using  
  the services of professional surveyors.     
  While the estimated useful life on an asset is determined on acquisition, using best estimates, 
  both residual values and estimated useful lives are monitored on an annual basis. Where the    
  estimated current residual value is in excess of the net book value of the asset concerned, no    
  depreciation is charged during the period.    
  The estimated useful lives of assets are as follows:    
  Freehold land Nil
  Freehold buildings 40 years  
  Leasehold property The period of the lease 
  Plant and equipment 3 years to 20 years 
  The gain or loss arising on the disposal or retirement of an asset is determined as the difference 
  between the sales proceeds and the carrying amount of the asset and is recognised in the 
  consolidated income statement.    
  Inventories    
  Stock and work in progress are valued at the lower of cost and net realisable value. Cost    
  comprises direct materials, other direct costs and labour together with an appropriate    
  proportion of overheads. 
  The cost of editorially originating a new title (i.e. the costs of writing, photographing and editing    
  a title) are expensed to the Consolidated Income Statement to match against the corresponding  
  revenue from such titles, over a period not exceeding 5 years. Provision is made against slow    
  moving and obsolete stock to ensure the value at which stock is held in the balance sheet is    
  reflective of anticipated future sales patterns. The period before a provision is made varies    
  between product categories but for general publishing related titles does not exceed 2 years    
  and for technical motoring titles does not exceed 5 years.    
  Leases  
  Where a Group Company enters into a lease which entails taking substantially all the risks and  
  rewards of ownership of an asset, the lease is treated as a “finance lease” and initially measured  
  at fair value or, if lower, the present value of the minimum lease payments. The asset is recorded  
  in the balance sheet as property, plant and equipment and is depreciated over its estimated    
  useful life or the term of the lease, whichever is shorter. Future instalments under such leases,    
  net of finance charges, are included within creditors. Rentals payable are apportioned between  
  the finance element, which is charged to the consolidated income statement, and the capital 
  element which  reduces the outstanding obligation for future instalments.    
  All other leases are accounted for as “operating leases” and the rental charges are charged to    
  the consolidated income statement on a straight line basis over the life of the lease.  45 45
Financial Statements
  Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 1 Principal accounting policies (continued)
  Taxation   
  The tax expense represents the aggregate of the tax currently payable and deferred tax. The 
  tax currently payable is based on taxable profit for the period. Taxable profit differs from net 
  profit as reported in the income statement as it excludes items of income or expense that are 
  taxable or deductible in other years and it further excludes items that are never taxable or 
  deductible. The Group’s liability for current tax is calculated using tax rates that have been 
  enacted or substantively enacted by the balance sheet date.
  Deferred tax is the tax expected to be payable or recoverable on differences between 
  the carrying amounts of assets and liabilities in the financial statements and the corresponding 
  tax bases used in the computation of taxable profit, and is accounted for using the balance 
  sheet liability method. Deferred tax assets are generally recognised to the extent that it is 
  probable that taxable profits will be available against which deductible temporary differences 
  can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet 
  date and reduced to the extent that it is no longer probable that sufficient taxable profits will be 
  available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax 
  rates that are expected to apply in the period when the liability is settled or the asset is realised. 
  Deferred tax is charged or credited in the income statement, except when it relates to items 
  charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
  Pension and other post retirement benefits  
  Payments to defined contribution retirement benefit schemes are charged as an expense as 
  they fall due. For defined benefit retirement schemes, the cost of providing benefits is 
  determined using the Projected Unit Credit Method, with actuarial valuations being carried out 
  at each balance sheet date. Actuarial gains and losses are recognised in full in the period 
  in which they occur. They are recognised outside the income statement and presented in the 
  statement of recognised income and expense. Past service costs are recognised immediately 
  to the extent that the benefits are already vested, and otherwise are amortised on a straight-line 
  basis over the average period until the benefits become vested.
  The retirement benefit obligation recognised in the balance sheet represents the present value   
  of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced 
  by the fair value of scheme assets.
  Dividends payable
  The liability for final dividends is recorded when the dividends are approved by the Company’s 
  shareholders. For interim dividends, the liability is recorded when the dividends are paid. 
  Cash and cash equivalents 
  Cash and cash equivalents includes cash in hand, deposits held at call with banks, other 
  short-term highly liquid investments with original maturities of three months or less and bank 
  overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance 
  sheet. For the purposes of the Group Cash Flow Statement, cash and cash equivalents are as 
  defined above, net of outstanding bank overdrafts. 
  46 46
Financial Statements
  Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 1 Principal accounting policies (continued)
  Financial instruments  
  Financial assets and financial liabilities are recognised on the Group’s balance sheet when the   
  Group becomes a party to the contractual provisions of the instrument. 
  Trade and other receivables 
  Trade receivables are recognised and carried at original invoice amount less provision for impairment. 
  A provision for impairment of trade receivables is established when there is objective evidence 
  that the Group will not be able to collect all amounts due according to the original terms 
  of receivables. The amount of the provision is recognised in the income statement. The cost of 
  unrecoverable trade receivables is recognised in the income statement immediately. 
  Where an advance is paid to an author, ahead of a title’s publication, the advance is held as an 
  asset on the balance sheet and is classified within other debtors. Once the title has been 
  published, royalties earned against the title will be offset against the author’s advance until 
  the advance asset has been cleared. Where it is deemed unlikely that future sales activity will 
  clear the outstanding royalty advance provision is made to write-down the asset to its 
  expected recoverable amount. 
  Bank borrowings 
  Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct   
  issue costs. 
  Trade payables 
  Trade payables are not interest bearing and are recognised and carried at original invoice amount. 
  Provisions 
  A provision is recognised in the balance sheet when a Group entity has a legal or constructive   
  obligation as a result of a past event, that can be estimated reliably and it is probable that an 
  outflow of economic benefits will be required to settle the obligation. If the effect is material, 
  a provision will be made by discounting the expected future cash flows at a pre-tax rate that 
  reflects current market assessments of the time value of money and, where appropriate, the 
  risks specific to the liability. 
  New standards and interpretations  
  The IASB and IFRIC have issued the following standards and interpretations with an effective   
  date falling after the date of these financial statements. 
  International Accounting Standards (IAS/IFRS) Effective date for 
    periods commencing
  IFRS 2 Amendment to IFRS 2 Share Based Payment: 
   Vesting Conditions and Cancellations * 1 January 2009
  IFRS 3     Revised IFRS 3 Business Combinations * 1 July 2009
  IFRS 8     Operating Segments  1 January 2009
  IAS 1        Amendment to IAS 1: 
   Presentation of Financial Statements: A Revised Presentation * 1 January 2009
  IAS 23     Amendments to IAS 23 Borrowing Costs * 1 January 2009 47 47
Financial Statements
  Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 1 Principal accounting policies (continued)
  New standards and interpretations (continued)
  IAS 27     Amendments to IAS 27 
   Consolidated and Separate Financial Statements * 1 July 2009
   Amendments to IAS 32 and IAS 1   
   Puttable Financial Instruments and 
   Obligations Arising on Liquidation * 1 January 2009
   Amendments to IFRS 1 and IAS 27
   Cost of an Investment in a Subsidiary, 
   Jointly Controlled Entity or Associate * 1 January 2009
   
  International Financial Reporting Interpretations Committee (IFRIC) 
  IFRIC 12   Service Concession Arrangements  1 January 2008
  IFRIC 13   Customer loyalty Programmes* 1 July 2008
  IFRIC 14   The Limit on a Defined Benefit Asset, 
   Minimum Funding Requirements and their Interaction * 1 January 2008
  IFRIC 15   Agreements for the Construction of Real Estate*  1 January 2009
  IFRIC 16   Hedges of a Net Investment in a Foreign Operation* 1 October 2008
  * Not yet adopted for use in the European Union
  The above standards and interpretations will be adopted in accordance with their effective 
  dates and have not been adopted in these financial statements. The Directors do not anticipate 
  that the adoption of the above Standards and Interpretations will have a material impact on the 
  financial statements of the Group in the period of initial application. 
  The revision to IFRS 3 will apply to new business combinations arising after 1 June 2010. The 
  revised standard will require companies to recognise subsequent changes in the fair value of 
  contingent consideration in the income statement rather than against goodwill. In addition, 
  transaction costs will be required to be recognised immediately in the consolidated 
  income statement. 
  Critical accounting estimates and judgements
  The preparation of the consolidated financial statements requires the Group to make certain 
  estimates and assumptions that have an impact on the application of the policies and the 
  amounts reported in the consolidated financial statements. Estimates and judgements are 
  evaluated based on historical experiences and expected outcomes and are believed to 
  be reasonable at the time such estimates and judgements are made, although actual 
  experience may vary from these estimates. 
  The estimates and assumptions which have the most significant bearing on the carrying value 
  of assets or liabilities are explained below: 
  i) Impairment of intangible assets 
   In line with IAS 36 the Group is required to test the carrying value of goodwill and intangible 
   assets with indefinite or indeterminate lives, at least annually, for impairment. As part of this 
   review process, the recoverable amount of the asset is determined using value in use 
   calculations, which requires estimates of future cash flows and as such is subject to 
   estimates and assumptions. Further details are contained in note 13 to the consolidated 
   financial statements.  48 48
Financial Statements Financial Statements
  Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 1 Principal accounting policies (continued)
  Critical accounting estimates and judgements (continued)
  ii) Depreciation of property, plant and equipment 
   Depreciation is provided in the consolidated financial statements so as to write-down the 
   respective assets to their residual values over their estimated useful lives and as such, the 
   selection of the estimated useful lives and the expected residual values of the assets requires 
   the use of estimates and judgements. Details of the estimated useful lives are as shown  
   above in the policy note for depreciation. 
  iii) Impairment of property, plant and equipment 
   Where there is an indication that the carrying value of items of property, plant and equipment 
   may have been impaired through events or changes in circumstances during the year, a 
   review will be undertaken of the recoverable amount of that asset based on value in use 
   calculations which will involve estimates and assumptions to be made by management (refer 
   to note 12 of the consolidated financial statements). 
  iv) Pensions and other post retirement benefits 
   In determining the pension cost and the defined benefit obligation of the Group’s defined 
   benefit pension schemes a number of assumptions are used. These assumptions include an 
   appropriate discount rate, the levels of salary escalation and price inflation, the expected 
   return on the schemes’ investments and mortality rates. Further details are contained in note 
   20 to the consolidated financial statements.  
  v) Inventory provisions 
   The Group reviews its finished goods inventory on a regular basis and, where appropriate, 
   makes provision for slow moving and obsolete stock based on estimates of future sales 
   activity. The estimates of future sales activity will be based on both historical experience and 
   expected outcomes based on knowledge of the markets in which the Group operates (refer 
   to note 14 of the consolidated financial statements). 
  vi) Origination amortisation 
   The cost of editorially originating a new title is expensed to the Consolidated Income 
   Statement to match against the corresponding revenue from such titles, over a period not 
   exceeding 5 years. The assessment of future sales activity is based upon estimates from 
   management using both historical experience and expected outcomes based on knowledge 
   of the markets in which the Group operates.
 2  Revenue
        2008  2007  
        £000 £000   
  Revenue by geographical destination on continuing operations   
  United Kingdom     10,719 9,510    
  Rest of Europe     3,090 2,054   
  United States of America    14,322  15,213   
  Rest of World     2,991 2,425  
  Total consolidated revenue*     31,122    29,202   
  * Apart from £3.7 million of turnover which was derived from the rendering of services and 
  £0.4 million of revenue which was derived from royalties, all other revenue was derived    
  from  the sale of goods.  49 49
Financial Statements
  Notes to the Consolidated Financial Statements     
   Year ended 31 May 2008     
 3   Segment information 
  For management purposes, the Group is currently organised into two operating segments.    
  These operating segments are the basis on which the Group reports its primary 
  segment information.     
  The principal activities of the two primary segments are as follows:
   – The origination, production and sale of automotive repair manuals in the UK and Europe. 
  – The origination, production and sale of automotive repair manuals in North America and Australia.
  Primary format – by geographical location     
  Financial year ending 31 May 2008     
      North     
     UK  America     
     & Europe & Australia  Eliminations  Consolidated  
     2008 2008 2008 2008
     £000 £000 £000 £000
  Revenue     
  External sales  13,912 17,210 – 31,122
  Inter-segment sales  236  706    (942) –
  Total revenue      14,148     17,916     (942)     31,122   
   Inter-segment sales are charged at the prevailing market rates.   
  Result      
  Segment operating profit  1,258 5,469 – 6,727 
   Unallocated head office income less expenses    240 
  Finance income     1,518
  Finance costs     (1,400)
  Consolidated profit before tax      7,085   
  Taxation      (2,043)
  Profit for the period from continuing operations    5,042
      North 
     UK America  
     & Europe & Australia Eliminations Consolidated
     2008 2008 2008 2008
     £000 £000 £000 £000
  Balance sheet     
  Segment assets  19,943 22,197 (839)  41,301   
  Segment liabilities  (4,860) (2,528) 1,646  (5,742)   
  Segment net assets   15,083     19,669     807     35,559   
   Unallocated head office assets [1]      7,477 
  Unallocated head office liabilities [1]      (10,347) 
  Unallocated head office eliminations     (807)
  Consolidated net assets      31,882   
   [1]  The unallocated head office assets primarily relate to freehold property of £2.7 million  
  (2007: £2.8 million), deferred tax assets of £2.6 million (2007: £2.8 million) and amounts owed by    
  subsidiary undertakings of £0.9 million (2007: £2.0 million). The unallocated head office liabilities  
  primarily relate to the plan deficit on the UK’s multi-employer defined benefit scheme of £5.4 million    
  (2007: £6.1 million) and tax liabilities of £0.6 million (2007: £0.9 million).  50 50
Financial Statements
  Notes to the Consolidated Financial Statements     
  Year ended 31 May 2008
 3  Segment information (continued)    
      Capital  
       Additions   Depreciation 
  Other segment information     £000   £000 
  UK and Europe - Continuing    270 285
  North America & Australia    1,958 461
      2,228 746
  Unallocated head office    1 19
  Consolidated total     2,229     765  
  Financial year ending 31 May 2007  
      Eliminations/ 
      Reclassification 
   UK North America Discontinued  of Discontinued 
   & Europe & Australia Operations Operations Consolidated
   2007 2007 2007 2007 2007
   £000 £000 £000 £000 £000
  External sales  11,755   17,447   2,600   (2,600)  29,202 
  Inter-segment sales  231   849   890   (1,970)  –   
  Total revenue  11,986   18,296   3,490   (4,570)  29,202 
   Inter-segment sales are charged at the prevailing market rates. 
  Result      
  Segment operating profit  1,086   5,865   (100)  100   6,951 
   Unallocated head office income less expenses    200 
  Finance income      1,104 
  Finance costs      (1,174)
  Consolidated profit before tax      7,081 
  Taxation       (1,913)
  Profit for the period from continuing operations    5,168 
  Loss for the period from discontinued operations     (2,946)
  Profit for the period      2,222 
      Eliminations/ 
     North  Reclassification 
    UK America  of Discontinued 
    & Europe & Australia Operations  Consolidated
    2007 2007 2007 2007
    £000 £000 £000 £000
  Balance sheet     
  Segment assets   12,756   22,341   (605)  34,492 
  Segment liabilities   (4,536)  (2,107)  2,494   (4,149)
  Segment net assets   8,220   20,234   1,889   30,343
  Unallocated head office assets [1] see page 51    8,535 
  Unallocated head office liabilities [1] see page 51    (8,140)
  Unallocated head office eliminations     (1,889)
  Consolidated net assets      28,849 51 51
Financial Statements
   Notes to the Consolidated Financial Statements     
  Year ended 31 May 2008
 3   Segment information (continued)
         Capital
         Additions   Depreciation 
  Other segment information        £000   £000 
  UK and Europe - Continuing       314   323 
  UK and Europe - Discontinued        –     22 
  North America & Australia        184   402 
          498   747 
  Unallocated head office        2   10 
  Consolidated total        500   757
  Secondary format – by business segment 
  Although the primary reporting focus of the Group is based on the geographical location of the    
  operating units, there are two distinct business segments within the Group as follows:
  – The origination and sale of automotive repair manuals    
  – The origination and sale of general publishing titles 
  The sales to external customers in each of the two segments is shown below: 
      2008 2007 
      £000 £000 
  Automotive repair manuals    24,879 23,747 
  General book publishing    6,243 5,455 
      31,122 29,202 
  Shown below is an analysis of the carrying amount of segment assets along with the additions    
  to property, plant and equipment in relation to the two business segments:
    Additions  Additions
   Carrying to property, Carrying to property,
   amount of plant and amount of plant and
   segment assets equipment segment assets equipment
   2008 2008 2007 2007
   £000 £000 £000 £000
  Automotive repair manuals 36,164 2,228 26,660 423 
  General book publishing 5,137 – 7,832 75 
   41,301 2,228 34,492 498 
   52 52
Financial Statements
  Notes to the Consolidated Financial Statements 
  Year ended 31 May 2008
 4  Operating profit 
  Operating profit is arrived at after charging/(crediting) the following:
        2008 2007 
        £000 £000 
  Net foreign exchange (gains)/losses    (26)  75  
  Depreciation of property, plant and equipment     765 757  
  (Profit)/loss on sale of property, plant & equipment   (91)  –    
  Cost of inventories recognised as an expense     9,834 10,029  
  Operating lease rentals  – Land and buildings    190  173  
                       – Plant and equipment     197 194  
  Staff costs (see note 5)      9,239 9,324  
  Auditors remuneration 
  The total fees payable by the Group to BDO Stoy Hayward LLP and their associates for work 
  performed during the year in respect of audit, tax compliance and other services to the Group 
  and its subsidiary companies is shown below:
        2008 2007
        £000 £000
  Fees payable to the Company’s auditor for the audit of 
  the Company’s annual accounts:    76 53  
  Fees payable to the Company’s auditor and its associates for other services  
    –  The audit of the Company’s subsidiaries pursuant to legislation  25  25  
    –  Other services pursuant to legislation     8 8  
    –  Transaction support services    47 3   
    –  Tax services       54 44  
  Fee’s payable in respect of the Group’s pension plans  
   –  Audit       5 5  
        215    138  53 53
Financial Statements
 
  Notes to the Consolidated Financial Statements 
  Year ended 31 May 2008
 5  Staff costs
  Employees:
  The average number of employees (including Directors)  during the year, analysed by category,    
  was as follows:
     Continuing  Continuing Discontinued   
     operations Total operations operations Total
     2008 2008 2007 2007 2007
     number number number number number
  Production   152  152     128   25   153 
  Selling and distribution  62  62     54   23   77 
  Administration   58  58     52   1   53 
      272     272     234   49   283 
  The aggregate payroll costs of these persons were as follows:   
     Continuing  Continuing Discontinued 
     operations Total operations operations Total
     2008 2008 2007 2007 2007
     £000 £000 £000 £000 £000
  Wages and salaries    7,411  7,411     7,528   742   8,270 
  Employer’s social security costs  610  610     577   96   673 
  Employer’s pension costs 
  defined benefit schemes (note 20) 1,095     1,095  1,103   –     1,103 
  Employer’s pension costs  
  defined contribution schemes 123  123     116  27   143 
      9,239     9,239     9,324   865   10,189 
  Full details concerning Directors’ emoluments, pension entitlements and long term incentive    
  schemes are shown in notes 7 and 8 of the  Board Report on Remuneration.
 6  Finance income    
        2008 2007
        £000 £000
  Finance income can be analysed as follows:     
  Interest receivable on bank deposits    161 161 
  Expected return on pension scheme assets (note 20)   1,357 943 
         1,518     1,104 
 7  Finance costs    
        2008 2007
        £000 £000
  Finance costs can be analysed as follows:     
  Interest payable on bank loans and overdrafts       
        34 29 
  Interest charge on pension scheme liabilities (note 20)   1,366 1,170 
        1,400  1,199 
  Less: Amounts included in profit from discontinued operations  –  (25) 
         1,400     1,174  54 54
Financial Statements
  Notes to the Consolidated Financial Statements
  Year ended 31 May 2008 
 8  Taxation              
             2008 2007
             £000 £000  
  (a) Analysis of charge in the period  
  Current tax:  
  – UK corporation tax on profits of the period         2,140 1,105 
  – Foreign tax            2,141 2,042 
  – Double tax relief           (1,856)  (965) 
  – Adjustments in respect of prior periods         (595)  (283) 
             1,830    1,899
  Deferred tax (note 18):  
  – Origination and reversal of timing differences         213 14 
  Total taxation in the Consolidated Income Statement      2,043     1,913 
  (b) Reconciliation of effective tax rate  
  In April 2008 the rate of UK corporation tax changed from 30% to 28% giving an effective rate 
  of 29.7% for our financial year ended 31 May 2008. Included in the deferred tax charge above  
  is an amount of £0.1 million arising from the change in the UK tax rate. The tax assessed for the  
  period differs from the standard rate of corporation tax for the period of 29.7% (2007: 30%).    
  The differences  are explained below:
             2008 2007
             £000 £000
  Profit on ordinary activities before tax           7,085 7,081 
   Taxation calculated at the standard rate of corporation tax  
  in the UK of 29.7% (2007: 30%)            2,102 2,124 
  Affected by:  
  Variance in overseas tax rates           631  615 
  Income/expenses not chargeable/deductible for tax        (95)  (637) 
  Other differences            – 94 
  Adjustments relating to prior years            (595) (283) 
  Total tax charge for the year reported in the  
  Consolidated Income  Statement          2,043     1,913 
  Effective tax rate           29% 27% 
   The lower effective tax rate in the prior year arose due to certain tax deductions in relation to 
  the discontinued operations.
  There is an unrecognised deferred tax liability for temporary differences associated with the    
  Company’s investments in its subsidiaries. However, in line with paragraph 40 of IAS 12, no 
  liability has been recognised in respect of these differences as the Company controls the 
  dividend policies of its subsidiaries and as such is in a position to control the timing of the 
  reversal of these differences and it is probable that such differences will not reverse in the 
  foreseeable future. The cumulative unremitted reserves of overseas subsidiaries as at 31 May 
  2008 was £20.1 million (2007: £20.8 million). However, it is not practical to calculate the tax that 
  would be due if these amounts were remitted due to the availability of foreign tax credits.   55 55
Financial Statements
   Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 9  Discontinued operations 
  On 24 November 2006 the Group announced the closure of its French operation, Editions    
  Haynes SARL and this was followed on 24 January 2007 by the sale of Sutton Publishing    
  Limited for a consideration of £3.0 million in cash.  
  The results of the discontinued operations which have been included in the Consolidated    
  Income Statement, were as follows:
      2008 2007
      £000 £000
  Revenue     –     2,600 
  Cost of sales     –     (1,533) 
  Gross profit     –     1,067 
  Distribution costs     –     (891) 
  Administrative expenses     –     (276) 
  Operating loss     –     (100) 
  Finance costs     –     (25) 
  Loss before taxation     –     (125) 
  Taxation     –     –   
  Loss for the period      –     (125) 
   Costs of terminating French operation    –     (533) 
  Loss on disposal of Sutton Publishing (including disposal costs)  –     (2,288) 
  Loss for the period from discontinued operations   –     (2,946) 
 10  Earnings per share 
  The calculation of the basic and diluted earnings per share is based on the following data:  
      2008 2007
      £000 £000
  Earnings:  
  Profit after tax - continuing operations*   5,041 5,168 
  Profit after tax - discontinued operations    – (2,946) 
  Profit after tax - all operations*     5,041    2,222 
  Number of shares:  
  Weighted average number of shares (note 21)    16,351,540   16,351,540  
  * Figure has been adjusted to exclude £1,000 (2007: £nil) attributable to minority interests. 
  As at 31 May 2008 there were no outstanding options on either of the Company’s two classes 
  of shares and there is no difference between the earnings used in the basic and diluted 
  earnings per share calculation.   56 56
Financial Statements
   Notes to the Consolidated Financial Statements
  Year ended 31 May 2008
 11  Dividends 
        2008 2007
        £000 £000
  Amounts recognised as distributions to equity holders in the period:  
  Final dividend for the year ended 31 May 2007 of 10p per share   
  (2006: 10.0p per share)      1,635 1,635 
  Interim dividend for the year ended 31 May 2008 of 5.0p per share  
  (2007: 5.5p per share)      818 899 
        2,453 2,534 
  Proposed final dividend for the year ended 31 May 2008  
  of 10.5p per share      1,717  
  The proposed final dividend is subject to approval by shareholders at the Annual General 
  Meeting, to be held on 23 October 2008 and has not been included as a liability in these 
  financial statements.
 12  Property, plant and equipment
      Land and buildings     
       Short Plant and
     Freehold leasehold equipment Total
      £000 £000 £000 £000
  Cost at 1 June 2006     5,396   413   16,468   22,277
  Additions    – –  500   500 
  Exchange rate movements     (78)  (15)  (377)  (470)
  Disposals    – –  (494)  (494)
  Cost at 1 June 2007     5,318   398   16,097   21,813 
  Additions through business combinations   –     –    232 232
  Additions    1,136 32 829 1,997
  Exchange rate movements    20 1  52 73
  Disposals    (10) (1) (648)  (659)
  Cost at 31 May 2008     6,464   430   16,562   23,456
  Amortisation at 1 June 2006     1,375   283   13,410   15,068 
  Exchange rate movements     (19) (10)  (303)  (332)
  Charge for the year     3   9   745   757 
  Disposals    – –  (443)  (443)
  Amortisation at 1 June 2007     1,359   282   13,409   15,050 
  Exchange rate movements    –    –    39 39   
  Charge for the year    10 6 749 765
  Disposals    –    (1) (637) (638)
  Accumulated depreciation at 31 May 2008   1,369   287   13,560   15,216
  Net book value 31 May 2008     5,095 143 3,002 8,240 
  Net book value at 31 May 2007     3,959   116   2,688   6,763 
  Net book value at 31 May 2006     4,021   130   3,058   7,209 
   There were no assets financed through finance leases or hire purchase arrangements during the 
  current or prior year.   
  The Director’s are not aware of any events or changes in circumstances during the year which 
  would have significant impact on the carrying value of the Group’s property, plant and 
  equipment as at the balance sheet date. 57 57
Financial Statements
  Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 13  Intangible assets 
    Trademarks    
    and domain  Purchased Other 
   Goodwill names Know how software intangibles Total
   £000 £000 £000 £000 £000 £000
  Cost at 1 June 2006  6,055   –     –     –     –     6,055 
  Exchange rate movements  (249)  –     –     –     –     (249)
  Disposal of subsidiary  (1,447)  –     –     –     –     (1,447)
  Cost at 1 June 2007  4,359   –     –     –     –     4,359 
  Additions through 
  business combinations 2,659 1,209 2,491 811 122 7,292
  Exchange rate movements 3 – – 24 (2)  25   
  Additions –    – – 55 – 55
  Cost at 31 May 2008  7,021   1,209     2,491     890     120     11,731 
  Amortisation at 1 June 2006 
  and 1 June 2007  –     –     –     –     –     –   
  Exchange rate movements  –     –     –     –     –     –   
  Amortisation charge 
  for the period  –     –     –    43     –    43
  Amortisation at 31 May 2008  –     –     –     43     –     43 
  Carrying value as at 
  31 May 2008  7,021   1,209     2,491     847    120     11,688
  Carrying value as at 
  31 May 2007  4,359   –     –     –     –     4,359 
  Carrying value as at 
  31 May 2006  6,055   –     –     –     –     6,055 
  Impairment tests for cash-generating assets containing goodwill 
  The Group tests intangible assets and goodwill with indefinite or indeterminate useful lives for 
  impairment annually, or more frequently if there are indications that their carrying values might 
  be impaired. As at the balance sheet date an impairment test has been undertaken on the cash 
  generating units shown below, based on value in use calculations and using the latest available 
  financial information. 
  The impairment reviews have been based on financial budgets which have been prepared 
  by management and approved by the Board. The key assumptions used in the budgets relate    
  to sales growth which for Haynes North America has been set at 3% and for Vivid Holding BV 
  5.7%, sales pricing and changes in direct costs which have been based on historical 
  performance and predicted future outcomes. The rate used to discount the forecast cash flows 
  in both CGU’s was 18%. Based on the impairment reviews undertaken in relation to both the  
  Haynes North American and Vivid Holding BV CGU’s, the cash flows over the next 5 year 
  period, are expected to exceed the carrying value of the goodwill and intangible assets with 
  indefinite or indeterminate lives and as such there are no indications of impairment at the 
  balance sheet date (2007: £nil). 
  In assessing the value in use of the CGU’s, management have considered the potential impact    
  of reasonably possible changes in the main assumptions used and believe that there are no 
  such changes that would cause the carrying value of the units to exceed their 
  recoverable amount.  58 58
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 13  Intangible assets (continued)
  The carrying amount of goodwill has been allocated as follows:
       2008 2007
       £000 £000
  Unit:      
  Haynes North America (HNA)     4,362  4,359 
  Vivid Holding BV (Vivid)     2,659  –   
        7,021     4,359 
  The additions to goodwill during the year arose following the acquisition by Haynes Publishing 
  Group P .L.C. of Vivid Holding BV, on 28 February 2008.  
  The carrying amount of intangible assets have been allocated as follows: 
       2008 2007
       £000 £000
  Unit:      
  Haynes North America     144  – 
  Vivid Holdings BV     4,523  –   
        4,667     –  
  The additions to the Haynes North America Inc intangible assets arose following the acquisition 
  of the trade and certain assets/liabilities of  Bookworks Pty Ltd in Australia and relate to trade
  marks and copyright which have been assigned an indefinite useful life and as such are not 
  amortised. The intangible assets in relation to Vivid Holding BV relate to trademarks, domain 
  addresses and know how which have been assigned indefinite or indeterminate useful lives and 
  as such not amortised and software development costs which are capitalised and amortised 
  on a straight line basis over 5 years. Both Bookworks and Vivid have strong reputations in their 
  respective market places. Bookworks is the leading distributor of technical automotive 
  publications in Australia while Vivid manages a unique multilingual database of repair and 
  maintenance data on all current European and Asian cars, light commercial vehicles and trucks. 
  The carrying value for assets with an indefinite life are tested annually for impairment.
  The amortisation charge for the period is included in the Consolidated Income Statement 
  as follows:
       2008 2007
       £000 £000
  Administrative expenses     43 - 
 14  Inventories  
       2008 2007 
       £000 £000  
  Raw materials     613 635 
  Work in progress     1,266 1,257 
  Finished goods     9,235 8,918 
       11,114 10,810 
  The carrying value of inventory represents cost less appropriate provisions. During the year 
  there was a net charge of £97,000 (2007: net credit of £219,000) to the Consolidated Income 
  Statement in relation to the inventory provisions. The movement in the inventory provisions are 
  included within cost of sales in the consolidated income statement. 
  Included within finished goods stock is £4.7 million (2007: £4.2 million) of editorial origination costs 
  in relation to the production of the core automotive and motorcycle repair manuals which is 
  amortised to the Consolidated Income Statement over a period not exceeding 5 years. Editorial 
  origination costs in relation to the general interest titles are amalgamated with the cost of printing 
  the title and are therefore, not separately identifiable but are expensed to the Consolidated Income 
  Statement over the first print run of a new title.      59 59
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 15  Trade and other receivables
      2008 2007
      £000 £000
  Amounts falling due within one year:     
  Trade receivables    12,032  9,803 
  Less: Provision for impairment    (238)  (202) 
  Less: Customer allowances     (876)     (856) 
       10,918     8,745 
  Taxation recoverable    –  14 
  Other debtors and prepayments    815  1,042 
      11,733     9,801 
  As the above trade and other receivables have a remaining life of one year or less, the notional    
  amount is deemed to reflect fair value.
      2008 2007
      £000 £000
  Analysis of trade receivables:     
  Neither impaired nor past due     9,716     8,208 
  Past due but not impaired    2,078  1,393 
  Impaired    238  202 
       12,032     9,803 
  The categorisation of ‘Past due but not impaired’ relates to a number of customers for whom 
  there is no history of default and management are confident the overdue balance will be 
  recovered in full. The categorisation of ‘impaired’ relates to overdue balances where the 
  customer has ceased trading or management are doubtful of recovery and a provision has been   
   made to cover the doubtful balance. The ageing of these two categories is shown in the table below:  
  
    Past due but   Past due but
    not impaired Impaired not impaired Impaired
    2008 2008 2007 2007
    £000 £000 £000 £000
  Less than 30 days past due  1,604     72     1,081     –   
  30 to 90 days past due  13     12     114    –   
  Greater than 90 days past due  461     154     198     202   
    2,078     238     1,393    202   
  The movement in the Group’s provision for impairment of trade receivables was as follows:
      2008 2007
      £000 £000
  Balance at 1 June     202     161   
  Amounts charged to the consolidated income statement   73     82   
  Amounts written-off as uncollectible     (37)     (41)   
  Balance at 31 May     238     202   
  The amounts of trade and other receivables shown above were held in the following currencies    
  at the balance sheet date:     
      2008 2007
      £000 £000
  US dollars     6,232     6,322 
  Sterling     3,668     3,161 
  Euro     1,407     –   
  Australian dollars 423                 315   
  Other currencies                                     3      3 
      11,733     9,801 
   
   60 60
Financial Statements
  Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 16  Cash and cash equivalents
       2008 2007
       £000 £000
  Cash at bank and in hand      2,506 6,478  
  Bank overdrafts         (2,310) –  
  Cash and cash equivalents in the cash flow statement (note 26)   196     6,478 
  In the UK, Barclays Bank PLC holds a debenture against the UK trading companies including 
  a first legal charge over the UK freehold properties in order to secure the £2.5 million overdraft 
  facility, together with guarantees from the UK and European trading companies. The overdraft 
  attracts interest based on the bank’s base rate and during the year the weighted average rate 
  was 6.3% (2007: 5.0%). In Holland Vivid Holding has a €0.4 million overdraft facility which is 
  unsecured and attracts interest based on the bank's base rate and during the period since its 
  acquisition by Haynes Publishing Group P .L.C. was 6.95%.
  As the above cash and cash equivalents have a remaining life of one year or less, the notional    
  amount is deemed to reflect fair value.
  The cash and cash equivalents shown above were held in the following currencies as at the 
  balance sheet date:
       2008 2007
       £000 £000
  US dollars     1,214  3,333 
  Sterling      (1,769) 2,329 
  Australian dollars     529  646 
  Euro     139 – 
  Other currencies      83 170 
        196     6,478 
  Deposits are placed for periods varying between call and one month and attract floating rates of  
  interest based upon the bank’s cost of funds for the relevant currencies.  
 17  Trade and other payables
       2008 2007
       £000 £000
  Amounts falling due within one year:  
  Trade payables     1,619  1,362 
   Other taxes and social security costs    216  134 
  Other creditors and accruals     2,997  2,361 
        4,832     3,857 
   Amounts falling due after more than one year:  
  Deferred consideration     67  135 
  As the majority of the above trade and other payables have a remaining life of one year or less,    
  the notional amount is deemed to reflect fair value. 
  The amounts of trade and other payables shown above were held in the following currencies at   
  the balance sheet date:  
       2008 2007
       £000 £000
  Falling due within one year:  
  US dollars     1,141  1,175 
  Sterling     2,290  2,652  
  Euro      1,296 –  
  Australian dollars     87 17  
  Other currencies     18  13 
        4,832     3,857 
  
  61 61
Financial Statements
  Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 17  Trade and other payables (continued)
  Amounts falling due after more than one year: 
       2008 2007
       £000 £000
  US dollars     67  135 
 18   Deferred tax assets and liabilities 
   2008 2008 2008 2007 2007 2007
   Assets Liabilities Net total Assets Liabilities Net total
   £000 £000 £000 £000 £000 £000
  Property, plant & equipment – (315)  (315)    –  (384)  (384) 
  Employee benefits 2,069 –  2,069     2,151  –  2,151  
  Provisions 497 –  497     651  –  651 
  Intangible assets   – (1,077) (1,077) – – – 
  Net deferred tax asset/(liability)  2,566     (1,392)     1,174     2,802   (384)  2,418  
       2008 2007 
       £000 £000 
  Balance at 1 June     (2,418)  (3,010) 
  Transfer to Consolidated Income Statement    213 14  
  Transfer to equity         (48)  510  
  Exchange rate movement         52  68  
  Acquisition of subsidiary       1,027 –  
  Balance at 31 May      (1,174)     (2,418) 
 19 Financial risk and treasury policy   
  The Group’s principal financial instruments comprise bank overdrafts, lease financing 
  arrangements, cash and short-term deposits as well as other various items arising from its 
  operations such as trade receivables and trade payables. The main purpose of these   
  instruments is to finance the Group’s working capital requirements as well as funding its capital 
  expenditure programmes. From time to time the Group may enter into derivative transactions 
  such as interest rate swaps or forward exchange contracts, the main purpose of such 
  transactions is to manage the interest rate and currency risks arising from the Group’s 
  operations and sources of finance. There were no such transactions entered into during the 
  current or preceding financial years.      
  Foreign currency risk      
  The Group has investments in subsidiary operations outside of the UK and also buys and sells 
  goods and services in currencies other than in the functional currencies of its subsidiary 
  operations. In light of the above, the Group’s non sterling revenues, profits, assets, liabilities 
  and cash flows can be affected by movements in exchange rates. The Group is able to 
  take advantage of certain natural hedge flows within the business operations which helps to 
  minimise the impact of the fluctuations in exchange but where appropriate will use forward rates 
  to minimise the risk. There were no forward exchange contracts entered into during the current 
  or preceding financial years. It is Group policy not to engage in any speculative trading in 
  financial instruments.      
  Sensitivity analysis      
  The most significant foreign currency risk to the Group is in relation to the US Dollar. 
  Management estimate that if all other variables remained constant the impact on pre-tax profits 
  of a 5% increase in the value of the US Dollar against Sterling would have been to reduce profits  
  by £0.2 million with a decrease of 5% having an equal and opposite effect. This estimate has   
  been based on an assessment of translating the US dollar profits into Sterling using the average  
  rate for the year of $2.01      
   62 62
Financial Statements
  Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008
 19 Financial risk and treasury policy (continued)
  Credit risk      
  The Group’s credit risk is primarily attributable to its trade receivables, which are spread over 
  a range of countries and customers, a factor which helps to dilute the concentration of risk. The 
  risk associated with such trading is mitigated through credit control management procedures 
  including the use of credit worthiness checks, the application of credit limits and the sale of 
  goods subject to retention of title clauses. A provision is made against such balances where 
  there is an identifiable loss or event, which based on prior experience provides management 
  with a significant doubt over the recovery of the balance. Due to the long established 
  relationships with the majority of the Group’s customers there is not deemed to be a credit 
  quality issue in relation to the trade receivables balance. The amount of the total exposure is 
  shown in note 15.       
  In addition to the above, the UK business has an exposure in relation to contractual advanced 
  royalty payments to authors. However, due to the large number of authors there is no significant 
  concentration of risk . The asset balance in relation to the author advances is held within other 
  debtors and prepayments (refer to note 15) and amounted to £0.3 million net of allowances for 
  doubtful recovery (2007: £0.3 million).        
  The credit risk on liquid funds is limited as the funds are held at banks with high credit ratings   
  assigned by international credit rating agencies.      
  Liquidity risk      
  The principal aim of the Group’s liquidity management is to maintain a balance between   
  continuity of funding and flexibility through the use of bank overdrafts, bank loans and 
  asset leasing. As at 31 May 2008 the Group had a £2.5 million UK overdraft facility which is 
  due for renewal in October 2008, a €400,000 overdraft in Europe which has no fixed renewal 
  date and a $11.0 million loan facility in the US which is due for renewal in April 2009.
  Interest rate risk      
  The Group companies have overdraft and loan facilities which are subject to variable rates of 
  interest based on the respective bank’s base rate. As at 31 May 2008 there were no bank loans 
  outstanding (2007: £nil) and bank overdrafts outstanding of £2.3 million (2007: £nil). Money 
  market deposits are placed for periods varying between call and one month and attract variable 
  rates of interest based upon the banks cost of funds for the relevant currencies.
  Sensitivity analysis      
  As all of the Group’s borrowings are subject to variable interest rates the Group does have an 
  exposure to a change in the market rates of interest. Management estimate that if all other 
  variables remained constant and if the overdraft balances as at the end of the financial year had 
  been outstanding for the entire financial year, the impact of a 1% increase in the bank base rate  
  would have been to decrease pre-tax profits by less than £0.1 million with a decrease of 1 %   
  having an equal and opposite effect.
  Fair value of financial assets and liabilities    
  There are no material differences between the carrying values and the fair values of the financial 
  assets and liabilities as recorded in the consolidated balance sheet. Details of the amounts of 
  financial assets and liabilities held in foreign currencies can be found in Notes 15, 16 and 17 to 
  the Consolidated Financial Statements.    
  Capital management    
  The primary aim of the Group’s capital management is to safeguard the Group’s ability to 
  continue as a going concern, to support its businesses and maximise shareholder value. The 
  Group monitors its capital structure and makes adjustments as and when it is deemed 
  necessary and appropriate to do so using such methods as adjusting the dividend payment to 
  shareholders or the issuing of new shares.     63 63
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 19  Financial risk and treasury policy (continued) 
      2008 2007 
  Interest cover 
  Operating profit (£’000)     6,967 7,151  
  Net finance costs (£’000)    118 70 
  Interest cover (ratio)    59 102 
  Interest cover is the operating profit from the consolidated income statement divided by net 
  finance costs 
      2008 2007
  Gearing ratio 
  Net debt (£’000)    – –   
  Total equity (£’000)    31,882 28,849 
  Gearing ratio (%)    – –   
  The gearing ratio comprises net debt divided by total equity (net debt being defined as cash    
  and cash equivalents - see note 16) 
 20  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 (the UK scheme) and a non-contributory defined benefit plan in the US (the US plan). A 
  contributory money purchase scheme in the UK (the Suttons scheme) was operated for part of 
  the year.  
  The assets of all schemes are held independently of the Group and its subsidiaries. The total 
  pension costs for the Group as shown in the balance sheet at the year end and as charged 
  through the income statement in the year are analysed below:  
      2008 2007
      £000 £000
  Amounts recognised in the Consolidated Income Statement  
  Amounts included in net operating costs:  
  – Current service costs (defined benefit scheme)   (1,095)  (1,103) 
  Amounts included in finance income:  
  – Expected return on pension scheme assets    1,357   943  
  Amounts included in finance costs:  
  – Interest charge on pension scheme liabilities    (1,366)  (1,170) 
  Amount recognised in the Consolidated Income Statement  (1,104)  (1,330) 
      2008 2007
      £000 £000
  Amounts recognised in the Consolidated Balance Sheet  
  Assets at fair value     16,616   17,890 
  Present value of deferred benefit obligation    (23,410)  (24,799) 
  Net deficit recognised in Consolidated Balance Sheet   (6,794)  (6,909)  64 64
Financial Statements
   Notes to the Consolidated Financial Statements     
  Year ended 31 May 2008 
 20   Retirement benefit obligation (continued)
  Assumptions used to determine the defined benefit obligation    
     2008  2007 
     UK  UK 
     Scheme  Scheme 
     % per Annum  % per Annum 
  Discount rate     6.6   5.6 
  Salary escalation    4.4  3.8 
  Price inflation    3.9   3.3 
  Pension increases    3.4   2.9 
  Expected return on invested assets   7.5   7.6 
  Expected return on insurance annuity contracts   6.6   5.6 
     2008 2007 
     US Plan US Plan 
     % per Annum % per Annum 
  Discount rate    5.0   5.0 
  Salary escalation    3.0   3.5 
  Price inflation    2.0   2.0 
  Pension increases    2.0   2.0 
  Expected return on invested assets    8.0   6.1 
  The post retirement mortality assumptions are based on the “PMA/PFA 92 mc” standard tables   
  and the life expectancies underlying the valuation are as follows: 
     2008 2007 
     Years Years 
  Current pensioners (at age 65)   - Male   21.88 21.88 
  Current pensioners (at age 65)  - Females   24.78 24.78 
  Future pensioners (at age 65)   - Males   23.01 23.01 
  Future pensioners (at age 65)   - Females   25.83 25.83 
  Scheme assets and expected rate of returns    
  The assets and liabilities in the plans and the expected rates of return on investments as at 31 
  May 2008 were as follows:    
    2008  2007 
    UK Scheme  UK Scheme 
   Rate of  Rate of 
   return Value return Value
   % £000 % £000
  Group Investment Linked Policy    
  – Equities  8.0   7,004   8.1   7,215 
  – Fixed interest/gilts  5.0   361   5.1   406 
  – Other bonds  6.6   828   5.6   338 
  – Cash  5.0   599   5.1   499 
  – Property  8.0   2,789   8.1   3,468 
    7.8  11,581  7.8   11,926 
  Secured pensions in payment  6.6  1,454  5.6   1,365 
  Assets at fair value  13,035  13,291  65 65
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 20   Retirement benefit obligation (continued) 
      2008  2007 
      US Plan  US Plan 
     Rate of  Rate of 
     return Value return Value
     % £000 % £000
  Group Investment Linked Policy    
  – US equities    8.0  3,581  8.2  4,460 
  – Other    – –  1.0  139 
  Assets at fair value    8.0  3,581  6.1  4,599 
  The overall expected return on assets assumption is derived as the weighted average of the 
  expected returns from each of the main asset classes. The individual return assumptions for 
  each class of asset are based on market conditions as at 31 May 2008 and represent a best    
  estimate of future returns for that class allowing for risk premiums where appropriate.
   UK US  UK US 
   Scheme Plan Total Scheme Plan Total
   2008 2008 2008 2007 2007 2007
   £000 £000 £000 £000 £000 £000
  Reconciliation of funded status       
  Present value of defined 
  benefit obligation  (18,439)  (4,971)  (23,410)  (19,420)  (5,379)  (24,799) 
  Assets at fair value  13,035   3,581   16,616   13,291   4,599   17,890  
  Net liability recognised in 
  the balance sheet  (5,404)  (1,390)  (6,794)  (6,129)  (780)  (6,909) 
  Amount recognised through the consolidated statement of recognised income and expense  
  
  Actuarial gain/(loss) during the year  723  (625)   98  474  919  1,393 
  Deferred tax on actuarial gain/(loss)  (202)   250  48  (142)   (368)   (510)  
   521 (375)   146  332  551  883 
  Actual return on assets      
  Expected return on plan assets 989   368   1,357   660   283   943  
  Actual gain/(loss) on plan assets  (1,822)  (1,043)  (2,865)  723   361   1,084 
    (833)  (675)  (1,508)  1,383   644   2,027 
  Reconciliation of present value of defined benefit obligation (DBO)
      UK 
      Scheme US Plan Total
      £000 £000 £000
  Present value of DBO at 1 June 2006    17,658   5,776  23,434
  Current Service Cost    626   477  1,103
  Interest Cost    897   273  1,170
  Employee contributions    177   –    177
  Actuarial (gains)/losses    249   (558) (309)
  Foreign currency exchange rate changes     –     (312) (312)
  Benefits     (187)  (277) (464)
  Present value of DBO at 1 June 2007     19,420   5,379  24,799 66 66
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 20  Retirement benefit obligation (continued)     
   UK Scheme US Plan Total
   £000 £000 £000
  Current Service Cost 613   482 1,095
  Interest Cost 1,097   269  1,366
  Employee contributions 170   –    170
  Actuarial (gains)/losses (2,545)  (417) (2,962)
  Foreign currency exchange rate changes  –     4    4
  Benefits  (316)  (746) (1,062)
  Present value of DBO at 31 May 2008  18,439   4,971  23,410
  Reconciliation of fair value of assets  UK Scheme US Plan Total
   £000 £000 £000
  Fair value of assets at 1 June 2006  11,179   3,738  14,917
  Expected return on plan assets  660   283  943
  Actuarial gain/(loss) on plan assets  723   361  1,084
  Foreign currency exchange rate changes  –     (201) (201)
  Employer contributions  740   695  1,435
  Employee contributions  176   –    176
  Benefits  (187)  (277) (464)
  Fair value of assets at 1 June 2007  13,291   4,599  17,890
  Expected return on plan assets  989   368  1,357
  Actuarial gain/(loss) on plan assets  (1,822)  (1,043) (2,865)
  Foreign currency exchange rate changes  –     4 4   
  Employer contributions  723   399  1,122
  Employee contributions  170   –    170
  Benefits  (316)  (746) (1,062)
  Fair value of assets at 31 May 2008  13,035   3,581 16,616  
  Reconciliation of change in funded status UK Scheme US Plan Total
   £000 £000 £000
  Defined benefit liability at 1 June 2006 6,479   2,038  8,517
  Total pension expense  864   467  1,331
  Employer contributions   (740)  (695) (1,435)
  Impact of foreign currency exchange rates  –     (111) (111)
  Actuarial (gain)/losses  (474)  (919) (1,393)
  Defined benefit liability at 1 June 2007 6,129   780  6,909
  Total pension expense  721   383  1,104
  Employer contributions   (723)  (399) (1,122)
  Impact of foreign currency exchange rates –     1    1
  Actuarial (gain)/losses  (723)  625 (98)  
  Defined benefit liability at 31 May 2008 5,404   1,390 6,794 67 67
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 20   Retirement benefit obligation (continued)
  History of experience adjustments      
    2008 2007 2006 2005 2004
    £000 £000 £000 £000 £000
  Present value of defined benefit obligation   (23,410)  (24,799)  (23,434)  (22,038)  (16,274)  
  Fair value of scheme assets  16,616   17,890   14,917   12,600   10,542  
  Deficit in the scheme   (6,794)  (6,909)  (8,517)  (9,438)  (5,732)  
  Experience adjustments on scheme liabilities     
  Amount  £000  2,962   309   500   (4,077)  390  
  Experience adjustments on scheme assets     
  Amount  £000  (2,865)  1,084   548   382   364  
  Expected contributions in the forthcoming year 
      Financial year beginning 
       1 June  
       2008
  Expected contributions in the forthcoming year    £000
  Group contributions     
  – UK scheme     796
  – US plan     411
       1,207
  Employee contributions     177
       1,384 
 21  Share capital
   2008 2007 2008 2007
   No. No. £000 £000
   Authorised:     
  ‘A’ Ordinary shares of 20p 10,000,000   10,000,000   2,000   2,000 
  Ordinary shares of 20p  8,750,000   8,750,000   1,750   1,750 
   18,750,000   18,750,000   3,750   3,750 
  Allotted, called up and fully paid:    
  ‘A’ Ordinary shares of 20p  9,000,000   9,000,000   1,800   1,800 
  Ordinary shares of 20p  7,351,540   7,351,540   1,470   1,470 
   16,351,540   16,351,540   3,270   3,270 
  The 31 March 1982 share price for capital gains tax purposes is 125p and after adjusting for 
  the 1989 (1 for 1) and 1993 (1 for 2) capitalisation issue this becomes 41.67p. At 31 May 2008 
  the share price was 187.5p (2007: 332p), with a high of 334.0p (2007: 365p) and a low of 
  187.5p (2007: 308p) for the financial year.     
  Both the ‘A’ Ordinary shares and the Ordinary shares carry equal voting rights of one vote per 
  share where a matter is decided other than on a show of hands. Both classes of share rank 
  ‘pari passu’ (including any distribution by way of dividend and on a return of capital ), save that 
  a transfer of ‘A’ Ordinary shares will not be permitted by the Directors other than to a member 
  of the holder’s immediate family or to family settlements. The holders of ‘A’ Ordinary shares 
  may convert such shares into Ordinary shares at the rate of one Ordinary share for each ‘A’ 
  Ordinary , subject to the further provisions of the Articles of  Association and the Companies  Acts. 68 68
Financial Statements
   Notes to the Consolidated Financial Statements     
   Year ended 31 May 2008 
 22   Consolidated statement of changes in equity 
      Foreign  
      currency  
    Share Share translation Retained   Minority 
    capital premium reserve earnings Total interests Total
    £000 £000 £000 £000 £000 £000 £000
   Balance at 1 June 2006 3,270   638   (402)  25,712  29,218  – 29,218 
  Profit for the period –   –   –   2,222  2,222 –  2,222 
  Currency translation 
  adjustments  –   –   (940)  –  (940) –  (940)
  Actuarial gains/(losses) 
  on defined benefit 
  plans (net of tax)  –   –   –   883  883 –  883 
  Total recognised income 
  and expense   (940) 3,105 2,165 – 2,165
  Dividends (note 11)  –   –   –   (2,534) (2,534) –  (2,534)
  Balance at 1 June 2007 3,270   638   (1,342)  26,283  28,849 –  28,849 
  Profit for the period  – – – 5,042 5,042 – 5,042
  Currency translation 
  adjustments  –   –  284  –  284 – 284
  Actuarial gains/(losses) 
  on defined benefit 
  plans (net of tax)  –   –   –  146 146 – 146
  Total recognised income 
  and expense   284 5,188 5,472 – 5,472
  Dividends (note 11)  –   –   –  (2,453) (2,453) – (2,453)
  Business combinations     – 14 14
  Balance at 31 May 2008  3,270   638   (1,058)  29,018  31,868 14  31,882 
   The share capital represents the Ordinary and ‘A’ Ordinary shares of the Company issued at par  
   which carry a right to participate in the distribution of dividends.    
   The share premium account represents the difference between the issue price and the nominal    
  value of shares issued.     
   The foreign currency translation reserve is used to record exchange differences arising from the   
   translation of the financial statements of overseas operations. 
  The retained earnings reserve represents the cumulative net gains and losses recognised in the   
   Consolidated Income Statement and Consolidated Statement of Recognised Income 
  and Expense.
 23  Related party transactions  
  Identity of related parties      
  The Group has a related party relationship with its subsidiaries and with its directors. A list of all 
  the Group’s subsidiaries is shown on page 78. Transactions between two subsidiaries for the    
  sale and purchase of goods or services and between the parent company and its subsidiaries    
   for management charges and license fees are priced on an arms length basis.   
  Transactions with related parties  
  The interests of the directors in the ordinary share capital of the Company as at 31 May 2008
  are shown in the Directors’ Report on page 20 as required by the FSA’s Disclosure 
  Transparency rules.   
  During the year directors had declarable interests in contracts with the Company and its 
  subsidiary undertakings shown below. In every case, the transaction was undertaken on an    
  ‘arms length’ basis at open market rates:      69 69
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 23   Related party transactions (continued)
  (1) A lease dated 28 August 1979 between John H Haynes Developments Inc., (a company 
  registered in California and controlled by Mr J H Haynes) and Haynes North America Inc. of the 
  premises situated at 859 and 861 Lawrence Drive, Newbury Park, California which was 
  amended on 1 May 2001, runs for a period of 5 years from that date, and is presently held over  
  pending renewal. The annual rent for the year ended 31 May 2008 was $207,214 (2007: 
  $207,214) or £102,834 (2007: £107,393) at the average exchange rate for the year.  M E F 
  Haynes is a Vice President of John H Haynes Developments Inc. 
  (2) A lease dated 20 December 1993 between the Haynes Family Trust (of which J H Haynes is 
  a trustee, and J H C Haynes and M E F Haynes are beneficiaries) and the Company of premises 
  known as the “Sparkford Creamery” in Somerset for a term of 21 years at an annual rent, 
  subject to revision every 3 years and presently £65,544 (2007: £37,100).
  (3) During the year The Haynes Motor Museum Limited, (of which J H Haynes and 
  M E F Haynes are directors) which is jointly owned by the Haynes International Motor Museum 
  Charitable Trust and J H Haynes and Mrs A C Haynes undertook the following transactions with  
  the Group:
      Balance at  Balance at
     Transactions 31 May Transactions 31 May
     2008 2008 2007 2007
     £000 £000 £000 £000
  Supply of garage services    –     –     2   –   
  Sponsorship    25   –     –     –   
  Supply of conference facilities   4   1   4   1 
  Purchase of books and manuals   24   6   20   5 
  J H Haynes and A Garner are Trustees of the Charitable Trust
  (4) On 22 July 2005 Haynes Developments Ltd, which is a company controlled by J H Haynes 
  and Mrs A C Haynes, and of which J H Haynes and M E F Haynes are directors, extended its 
  sublease of 600sq ft of office premises on the main Sparkford site at a rent of £2,120 per 
  annum (2007: £2,120) plus service charge, for a period of 3 years.    
 
  (5) A tenancy of No 12 Ivel Gardens, Ilchester, owned by Mrs A C Haynes and let to the 
  Company (at a monthly rental of £490 plus outgoings) with Haynes Developments Ltd acting as 
  agent for the lessor. As at 31 May 2008 the balance outstanding to Haynes Developments Ltd 
  was £787 (2007: £783).     
  (6) In September 2007 the Company was a co-sponsor of the World Motor Museum Forum 
  which was hosted by the Haynes International Motor Museum. This was a high profile 
  international event that provided the Group with networking and promotional opportunities.   
  
  Except as stated above, no directors were materially interested in contracts with the Company 
  or any of its subsidiary undertakings.      
  Key management emoluments     
  The remuneration of the directors, who are the key management personnel of the Group is set 
  out below in aggregate for each of the categories specified within IAS 24 ‘Related Party 
  Disclosures’. Further information regarding the directors’ individual remuneration packages is 
  provided in the audited part of the Board Report on Remuneration on pages 28 to 33. 
       2008 2007
       £000 £000
  Short term employee benefits     1,065 1,059 
  Post employment benefits    205  208 
        1,270     1,267  70 70
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 24   Analysis of cash flows given in the Cash Flow Statement  
       2008 2007
       £000 £000
  Cash flows from operating activities - continuing   
  Profit after tax     5,042  5,168 
  Adjusted for:   
  Income tax expense     2,043  1,913 
  Interest payable and similar charges     34  4 
  Interest receivable     (161)  (161) 
   IAS 19 pensions current service cost net of contributions paid  9  227 
  Operating profit      6,967     7,151  
   Depreciation on property, plant and equipment    765  735  
  Amortisation of intangible assests     43 –  
  Funding of pension and past retirement benefits    (27) (332)  
  Excess of acquirer’s interest in the net fair value 
  of the identifiable assets and liabilities over cost     (38) –   
  Gain/(loss) on disposal of property, plant and equipment   (90)  –   
        7,620     7,554 
  Changes in working capital:   
  Decrease/(increase) in inventories     236  (215) 
  (Increase)/decrease in receivables     (604)  526 
  Decrease in payables     (274)  (308) 
        6,978     7,557 
  Cash flows from operating activities - discontinued   
  Profit after tax     –  (2,946) 
  Adjusted for:   
  Interest payable and similar charges     –  25 
  Loss on disposal of subsidiary     –  2,288 
  Closure of operation     –  533 
  Operating loss     –     (100) 
   Depreciation on property, plant and equiptment    –  22 
  Gain/(loss) on disposal of property, plant and equiptment   –  –  
        –     (78) 
  Changes in working capital:   
  Increase in inventories     –  (235) 
  Increase in receivables     –  (280) 
  Increase in payables     –  10 
        –     (583)  71 71
Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 25  Acquisitions and disposals  
  Acquisitions     
  On 5 June 2007, the Board announced the acquisition of certain assets and liabilities including 
  finished goods inventory, work in progress, intellectual property and equipment from Bookworks 
  Pty Ltd, Rellim Pty Ltd, Motordata Pty Ltd and Stan H Earle Pty Ltd all private Australian 
  companies in the book origination, printing and distribution business. The total consideration for 
  the acquisition was £0.7 million (A$1.5 million) after taking into account the costs of aquisition.  
  Given the proximity of the acquisition to the date of the publication of the Consolidated Financial 
  Statements for the year ended 31 May 2007 it was not possible to determine the fair values 
  of any intangible assets arising on the acquisition. Accordingly, provisional fair values were 
  noted in those Consolidated Financial Statements. Following a review undertaken post 
  acquisition intangible assets of £144,000 (A$334,000) have been identified in relation to the 
  trademarks (£26,000) and copyrights (£118,000) held by the Bookworks companies.   
  The table below shows the fair values arising on the acquisition:     
        Recognised on 
      Carrying value  acquisition 
      £’000  £’000 
  Assets acquired     
  Property, plant and equiptment     75   105 
  Intangible assets (note 13)     –     144 
  Inventories     504   540 
  Other creditors     (40)  (40)
  Deferred tax arising on recognition of intangible assets   –     (49)
  Fair value of net assets     539   700 
  Excess of acquirer’s interest in the net fair value of the 
  identifiable assets and liabilities over cost    (38)
  Total consideration      662 
  Consideration      606 
  Costs associated with the acquisition    56 
  Total consideration      662 
   The cash outflow on acquisition was as follows:     
  Cash paid      (662) 
  Net cash outflow      (662) 
  In August 2007 new premises in Sydney, Australia were acquired for a consideration of A$2.3 
  million (£1.0 million) exclusive of taxes, which has enabled the Group’s Australian businesses 
  to be combined and operate from one location. As a result of the amalgamation during the 
  period it is impracticable to determine the amount of profit for the period, which would have 
  been derived solely from the newly acquired business as required by Paragraph 67(i) of IFRS 3 
  ‘Business Combinations’.     
  Paragraph 70 (a) and (b) of IFRS 3 requires an acquirer to disclose the Group revenue and 
  Group profit attributable to equity holders of the parent, as if the acquisition had been effected 
  at the beginning of the financial period. However, as the acquisition of the Bookworks businesses was    
  completed at the beginning of the financial period there is no difference between the basis  as required    
   under IFRS 3 above and that shown in the Consolidated Income  Statement.   
  The excess of the acquirer’s interest in the net fair value of the identifiable assets and liabilities 
  over cost of £38,000 has been included within other operating income in the Consolidated 
  Income Statement.   72 72
Financial Statements Financial Statements
   Notes to the Consolidated Financial Statements      
  Year ended 31 May 2008 
 25   Acquisitions and disposals (continued) 
  On 28 February 2008, the Group acquired 100% of the issued share capital of Vivid Holding BV,  
  a company based in Soest, Holland with subsidiaries in Holland, the UK, Italy and Spain (the    
  Vivid group). The Vivid group specialise in the supply of digital technical information on repair, 
  maintenance and diagnostics to independent garages and workshops. The total cash 
  consideration was £6.2 million ( €8.2 million) after taking into account the costs of aquisition.   
  The provisional fair values of the identifiable assets and liabilities at the relevant dates of 
  acquisition are as follows: 
           Carrying Recognised 
           value  on acquisition 
           £’000  £’000 
  Assets acquired     
  Property, plant and equipment         127   127 
  Intangible assets (note 13)         811   4,480 
  Trade & other receivables          1,328   1,328 
  Cash & cash equivalents          102   102 
  Bank overdrafts          (215)  (215)
  Trade & other payables          (1,219)  (1,219)
  Deferred tax          -  (1,027)
           934    3,576 
  Goodwill arising on acquisition          2,659 
  Total consideration           6,235 
  Consideration           6,049 
  Costs associated with the acquisition         186 
  Total consideration           6,235 
   The cash outflow on acquisition was as follows:     
  Cash and cash equivalents acquired        (113) 
  Cash paid           (6,235)
  Net cash outflow           (6,348)
  From the date of acquisition the Vivid group contributed £0.2 million to the Group's profit before 
  tax as shown in the Consolidated Income Statement. The combined revenue and profit before 
  tax of the Group, assuming the Vivid group had been acquired by the Group at the start of the 
  financial year, would have been £33.7 million and £7.4 million respectively.
  Included in the £2.7 million of goodwill recognised above are certain intangible assets that could  
   not be individually separated and reliably measured due to their nature. These items include the   
   expected value of synergies and the assembled work force.
  Deferred consideration      
  Analysis of net cash outlflow     
           2008 2007
           £000 £000
     
  Deferred consideration in relation to the Chilton acquisition 
[1]
   68 208 
  [1]  The payments during the year relate to deferred consideration arising on the acquisition in 
  January 2001 of certain assest and intellectual property of Chilton Manuals from WG Nichols in 
  the USA. The remaining balance due on the deferred consideration is included within Trade and 
  other payables.      73 73
Financial Statements
   Notes to the Consolidated Financial Statements     
   Year ended 31 May 2008 
 26   Analysis of the changes in net funds 
     As at   As at
     1 June  Exchange 31 May
     2007 Cash flow movements 2008
     £000 £000 £000 £000
  Cash at bank and in hand  6,478  (4,243) 271  2,506 
  Bank overdrafts    –    (2,310)  – (2,310)   
      6,478   (6,553)         271 196 
 27  Operating leases   
  As at 31 May 2008 the Group had outstanding commitments for future minimum lease 
  payments under non-cancellable operating leases, which fall due as follows:   
           2008 2007
           £000 £000
  Commitments under non-cancellable operating leases    
  Land and buildings:    
  Due within one year          100 40 
  Due in the second to fifth years        306  148 
  Due after five years          171 74 
            577     262 
  Plant and equipment:    
  Due within one year     139  159 
  Due in the second to fifth years                               190                 150  
  Due after five years          2 – 
        331     309 
        908     571 
 28  Capital commitments     
          
  At 31 May 2008 the Group had the following capital commitments  for which no provision has    
  been included in the financial statements:   
       2008 2007
       £000 £000 
    
  Contracted     5  5 
 29  Ultimate controlling party
  The ultimate controlling party is J H Haynes who has majority voting rights by virtue of his    
  57.5% beneficial interest in the ordinary shares of the Company. 74 74
Financial Statements
  Company Balance Sheet  
  As at 31 May 2008  
       2008 2007
       £000 £000
  Fixed assets  
 Note 33 Tangible assets     2,704  2,813 
 Note 34 Investments in subsidiary undertakings    7,106  871 
        9,810     3,684 
  Current assets  
 Note 35 Debtors     835  1,891 
  Cash at bank and in hand     1  721 
        836     2,612 
 Note 36 Creditors: amounts falling due within one year    (2,967)  (755) 
  Net current assets      (2,131)     1,857 
  Total assets less current liabilities     7,679     5,541 
 Note 38 Provisions for liabilities     (168)  (177) 
  Net assets      7,511     5,364 
  Capital and reserves  
 Note 39 Called up share capital     3,270  3,270 
 Note 40 Share premium account     638  638 
 Note 40 Profit and loss account     3,603  1,456 
  Shareholders’ funds      7,511     5,364 
  The financial statements were approved by the board of directors and authorised for issue on 
  4 September 2008 and were signed on its behalf by:  
 
  J H Haynes OBE
  E Oakley
  Directors  75 75
Financial Statements
  Notes to the Company Accounts   
  Year ended 31 May 2008   
 30 Principal Accounting Policies   
  Basis of accounting 
  The financial statements of the parent company, Haynes  Publishing Group P .L.C. have been 
  prepared under the historical cost convention and in accordance with applicable United 
  Kingdom Accounting Standards and law.    
  The Company has taken advantage of the exemption available under FRS 8 and has not 
  disclosed transactions with subsidiaries wholly owned by the Group.   
   
  Foreign currencies 
  Transactions in foreign currencies are translated to sterling at the rate ruling on the date of the 
  transaction. Exchange differences arising from the movement in rates between the date of 
  transaction and the date of settlement are taken to the profit and loss account as they arise.   
  At each balance sheet date, monetary assets and liabilities that are denominated in foreign 
  currencies are retranslated at the rates prevailing on the balance sheet date.   
  Depreciation 
  Depreciation is provided to write off the cost of tangible fixed assets less any estimated residual 
  values, by equal instalments over their estimated useful lives as follows:  
  Freehold land     Nil
  Freehold buildings     40 years 
  Leasehold property     The period of the lease 
  Plant and equipment     3 years to 10 years 
  Taxation  
  Deferred tax is recognised in respect of all timing differences that have originated but not
  reversed at the balance sheet date and that will result in an obligation to pay more, or a right to 
  pay less tax, with the exception that deferred tax assets are recognised only to the extent that 
  the directors consider that it is probable that there will be sufficient taxable profits from which 
  the future reversal of the underlying timing differences can be deducted.   
  Deferred tax is measured on an undiscounted tax basis at the tax rates that are expected to 
  apply in the periods in which the timing differences will reverse.   
  Leases  
  Operating lease rentals are charged to the profit and loss account on a straight line basis over 
  the life of the lease.   
  Retirement benefits 
  The Company participates in a multi-employer defined benefit pension scheme based on final 
  pensionable pay where the assets of the scheme are held separately from those of the 
  Company. The Company is unable to identify its share of the underlying assets and liabilities of 
  the scheme on a consistent and reasonable basis and therefore, in accordance with FRS 17 
  ‘Retirement benefits’, accounts for the scheme as if it were a defined contribution scheme. As a 
  result, the amount charged to the profit and loss account represents the contributions payable 
  to the scheme in respect of the accounting period. Details of the UK Scheme are shown in Note 
  20 to the Consolidated Accounts.    76 76
Financial Statements
  Notes to the Company Accounts   
  Year ended 31 May 2008   
 30  Principal Accounting Policies (Continued) 
  Financial instruments 
  Financial assets and financial liabilities are recognised on the Company’s balance sheet when 
  the Company becomes a party to the contractual provisions of the instrument.   
  Trade creditors   
  Trade creditors are not interest bearing and are stated at their nominal value.   
  Investments 
  Investments in subsidiaries are held at historical cost less any provision for impairment.
  31   Profit of the Parent Company  
  As permitted by Section 230 of the Companies Act 1985, the Income Statement of the 
  Company is not presented as part of these financial statements.  
  The profit dealt with in the Company accounts was £4.6 million (2007: loss of £1.3 million) 
  which includes dividends received from subsidiaries of £4.5 million (2007:£2.5 million).   
  Employees  
       2008 2007
  Aggregate remuneration of employees    £000 £000 
  Wages and salaries     973  933  
  Employer’s social security costs     63  52  
  Employer’s pension costs     23  28  
        1,059     1,013  
       2008 2007 
       No No
  Average number of employees (all administration)   11  12 
  Full details concerning the Director’s emoluments, pension entitlements and long-term incentive 
  schemes are shown in notes 7 and 8 of the Board Report an Remuneration.  
  Auditor’s remuneration  
  The fees payable by the Company to BDO Stoy Hayward LLP for work performed in respect 
  of the audit of the Company was £25,000 (2007: £21,000). Fees paid to BDO Stoy Hayward 
  LLP by the Company for non-audit services are not reported in these accounts as the 
  information is disclosed in note 4 of the Consolidated Financial Statements.  
 32   Dividends  
       2008 2007
  Dividends paid and proposed     £000 £000
  Amounts recognised as distributions to equity holders in the period:  
   Final dividend for the year ended 31 May 2007 of 10p per share   
  (2006: 10.0p per share)     1,635 1,635 
  Interim dividend for the year ended 31 May 2008 of 5.0p per share  
  (2007: 5.5p per share)     818 899 
       2,453 2,534 
   Proposed final dividend for the year ended 31 May 2008    
  of 10.5p per share     1,717 1,635 
   The proposed final dividend is subject to approval by shareholders at the Annual General 
  Meeting, to be held on 23 October 2008 and has not been included as a liability in these 
  financial statements.         77 77
Financial Statements
  Notes to the Company Accounts
  Year ended 31 May 2008
 33  Tangible fixed assets    
    Land and buildings   
     Short Plant and 
    Freehold leasehold equipment Total
    £000 £000 £000 £000
  Cost at 1 June 2007   4,012   97   102   4,211 
  Additions  – – 1  1   
  Disposals  (9) – – (9)
  Cost at 31 May 2008   4,003   97   103   4,203 
   Accumulated depreciation at 1 June 2007  1,241   67   90   1,398 
  Charge for year   92 5 4 101   
  Accumulated depreciation at 31 May 2008  1,333   72   94   1,499 
  Net book value at 31 May 2008   2,670   25   9   2,704 
  Net book value at 31 May 2007   2,771   30   12   2,813 
  The depreciation charge on freehold buildings is calculated on buildings with an original cost of 
  £3,613,000 (2007: £3,613,000). There were no assets financed through finance leases or hire 
  purchase arrangements during the current or prior year.
 34 Investment in subsidiary undertakings    
     Shares in Loans to 
     subsidiary subsidiary 
     undertakings undertakings Total
     £000 £000 £000 
  The Company    
  Cost    
  Cost at 1 June 2007    1,065   1,666   2,731 
  Additions   6,235 –  6,235   
  Disposal   (194) (1,666)  (1,860)   
  Cost at 31 May 2008    7,106   –   7,106 
  Provision for impairment    
  Impairment at 1 June 2007    194   1,666   1,860 
  Impairment in year   – –  –   
  Disposal   (194) (1,666) (1,860)   
  Impairment at 31 May 2008    –   –   – 
  Carrying value at 31 May  2008    7,106   –     7,106 
  Carrying value at 31 May  2007    871   –     871 
  The disposal during the year relates to the liquidation of the French subsidiary Editions Haynes.  78 78
Financial Statements
  Notes to the Company Accounts
  Year ended 31 May 2008
 34 Investment in subsidiary undertakings (continued)
   As at 31 May 2008 there were the following principal subsidiary undertakings. Except as indicated  
  all subsidiaries are all wholly owned,  within the Group and all with financial year-ends of 31 May:
      Country of incorporation,   
      registration and operation 
  J H Haynes & Co Ltd (Publisher and Printer)   United Kingdom 
  J H Haynes (Overseas) Ltd (Holding Company)   United Kingdom 
  Haynes North America, Inc (Publisher)*   USA
  Haynes Manuals, Inc (Book Distributor)*   USA 
  Odcombe Press LP (Printer)*    USA 
   Haynes Publishing Nordiska AB (Sales and Marketing)   Sweden 
  Vivid Holdings BV (Holding)    Holland 
  Vivid Automotive Data & Media BV (Sales)*   Holland 
  Vivid Automotive Data (UK) Ltd (Data Production)*   United Kingdom 
  Vivid Automotive Data Espana SL (Sales)*   Spain
  Vivid Italia srl (Sales)*
[1]
    Italy 
  As at 31 May 2008, there were the following dormant subsidiary undertakings, all wholly owned 
  within the Group: Camway Autographics Ltd, *Haynes Garages Ltd, GT Foulis & Co Ltd, Oxford 
  Illustrated Press Ltd, Patrick Stephens Ltd, *Camelot Inc, *Odcombe Press (Nashville) Inc, 
  *E-Commerce Management Ltd, *Vivid Automotive Data Publishing Ltd and *Partsdoc Holding BV.
   Editions Haynes SARL, a wholly owed French subsidiary, was in liquidation as at 31st May 2008.
  
[1]
 Through Vivid Automotive Data & Media BV the Group has a 60% interest in the equity of  
  Vivid Italia srl.
  * Shares of those subsidiaries marked with an asterisk are held by subsidiary undertakings. All   
  other shares are held by the Company.
 35   Debtors     
       2008 2007
       £000 £000
    Amounts falling due within one year:   
  Amounts owed by subsidiary undertakings     764  1,845 
  Taxation recoverable     45  –   
  Other debtors and prepayments     26  46 
        835     1,891 
  36  Creditors      
       2008 2007
       £000 £000
  Amounts falling due within one year:   
  Trade creditors      19 21 
  Amounts owed to subsidiary companies     111 111 
  Bank overdraft     2,248 –  
  Corporate taxes      – 21 
  Other taxes and social security costs     3 4 
  Other creditors and accruals      586 598 
       2,967 755  79 79
Financial Statements Financial Statements
  Notes to the Company Accounts
  Year ended 31 May 2008
 37   Financial risk management, objectives and policies 
  Note 19 to the Consolidated Financial Statements provides details of the Group’s financial risk    
  management, objectives and policies. These policies also apply to the company.  
  Financial assets  
  As at 31 May 2008 the Company had financial assets totalling £1,000 (2007:£721,000) of    
  which £1,000 was held in Euro's (2007:£nil), £nil was held in Sterling (2007:£720,000) and £nil 
  was held in US dollars (2007: £1,000).  
  Fair value of financial assets and liabilities  
  There are no material differences between the carrying value and the fair value of the financial 
  assets and liabilities.  
 38   Provisions for liabilities
      2008 2007
      £000 £000
  Deferred taxation: 
  Balance at 1 June     177 174 
  Transfer to profit and loss account     (9) 3 
  Balance at 31 May      168 177 
  Being:   
  Accelerated capital allowances     180  191  
  Other short-term timing differences     (12)  (14) 
  Provision for deferred tax     168     177  
   Analysed in the Balance Sheet as follows:  
  Provision for liabilities and charges     168  177  
  The deferred tax provision arises as a result of timing differences between the treatment of 
  certain items for tax and accounting purposes.  
 39  Share capital 
    2008 2007 2008 2007
    No. No. £000 £000
  Authorised:    
  ‘A’ Ordinary shares of 20p  10,000,000  10,000,000  2,000  2,000  
  Ordinary shares of 20p  8,750,000 8,750,000  1,750  1,750  
     18,750,000     18,750,000  3,750     3,750  
  Allotted, called up and fully paid:    
  ‘A’ Ordinary shares of 20p  9,000,000  9,000,000  1,800  1,800  
  Ordinary shares of 20p  7,351,540  7,351,540  1,470  1,470  
    16,351,540     16,351,540   3,270     3,270  
  The 31 March 1982 share price for capital gains tax purposes is 125p and after adjusting for the    
  1989 (1 for 1) and 1993 (1 for 2) capitalisation issue this becomes 41.67p. At 31 May 2008 the share  
  price was 187.5p (2007: 332p), with a high of 334.0p (2007: 365p) and a low of 187.5p 
  (2007: 308p) for the financial year.    
  Both the ‘A’ Ordinary shares and the Ordinary shares carry equal voting rights of one vote per share 
  where a matter is decided other than on a show of hands. Both classes of share rank ‘pari passu’ 
  (including any distribution by way of dividend and on a return of capital ), save that a transfer of ‘A’ 
  Ordinary shares will not be permitted by the Directors other than to a member of the holder’s imme
  diate family or to family settlements. The holders of ‘A’ Ordinary shares may convert such shares into 
  Ordinary shares at the rate of one Ordinary share for each ‘A’ Ordinary , subject to the further 
  provi sions of the Articles of  Association and the Companies Acts.     80 80
Financial Statements Financial Statements
  Notes to the Company Accounts
  Year ended 31 May 2008
 40   Reconciliation of movement in shareholders’ funds    
       Profit 
     Share Share and loss 
     capital premium account Total
     £000 £000 £000 £000
  Balance at 1 June 2006    3,270   638   5,286   9,194 
  Loss for the period    –   –   (1,296)  (1,296)
  Dividends (note 32)    –   –   (2,534)  (2,534)
  Balance at 1 June 2007    3,270   638   1,456   5,364 
  Profit for the period   – – 4,600 4,600
  Dividends (note 32)   – – (2,453)  (2,453)
  Balance at 31 May 2008    3,270   638   3,603   7,511 
 41  Retirement benefits    
  The Company is a member of a larger UK group wide pension scheme providing benefits based 
  on final pensionable pay. As the Company is unable to identify its share of the scheme assets 
  and liabilities on a reasonable and consistent basis, the Company is permitted under FRS 17 
  ‘Retirement Benefits’ to account for the scheme as if it were a defined contribution scheme. 
  Details of the UK Scheme are detailed in note 20 to the Consolidated Financial Statements and 
  whilst reported under IAS 19 are not in the Directors opinion significantly different to the 
  FRS 17 values.    
  The contributions paid by the Company into the scheme during the year amounted to £23,000 
  (2007: £28,000).    
 42   Leases 
  Annual operating lease commitments:
       2008 2007
       £000 £000
  Land and Buildings:     
  Leases expiring after five years      65  37 
  Plant and equipment:     
  Leases expiring in less than 1 year      –  8 
  Leases expiring between 2 and 5 years      1  1 
       1     9 
       66     46  81 81
Financial Calendar and 
Analysis of Shareholders
  Financial Calendar
  Company year end      31 May
  Announcement of annual results and proposed final dividend   September
  Financial statements and report posted     September
  Annual General Meeting      October
  Final dividend paid      October
  Interim Statement      January
  Interim dividend paid      April
  Analysis of Shareholders as at 31 May 2008  
  Type of    Number of Total
  Shareholder   Shareholders shareholdings
  Commercial and industrial companies   27   695,515 
  Directors beneficial holdings    5   10,154,567 
  Nominee companies     98   5,199,305 
  Private holders     216   301,153 
  Investment trusts and funds     1   1,000 
       347   16,351,540 
  Share Registrars  
  Website:  www.capitaregistrars.com
  Investors  
  Company website:  www.haynes.co.uk/investor
  Share price:  www.londonstockexchange.com (code: hyns)  “...it’s the paper equivalent 
of talking to a mate who’s 
happy to help...a great way 
for owners to save cash by 
tackling jobs themselves...” 
Auto Express    Haynes Publishing Group P .L.C.
Sparkford, Yeovil, Somerset BA22 7JJ England • Telephone +44 1963 440635 • Fax +44 1963 440825