- Haynes Publishing Group, which publishes car and motorcycle repair manuals, said profits for the year to May fell due to challenging market conditions characterised by lower consumer spending and increased raw material prices.

Pretax profits for the year fell to £8.3m from £9.2m last time, on sales down at £34.2m from £36.4m.

Commenting on the results, chairman John Haynes said the difficult market conditions that led to a fall in profit at the half-year stage had continued into the second half.

'The global impact of rising fuel prices was affecting consumer spending, leading to tighter inventory control by our key customers and there was increasing upward pressure on the cost of our raw materials and utility overheads,' the chairman said.

Despite these challenges, the full-year profit was the third highest in Haynes Publishing's history, he added.

The group said it has now implemented price increases that should help to ease pressure on margins during the coming months, but it cautioned that the tough market conditions are likely to continue into the coming months.

In the coming year, Haynes said it plans to restructure underperforming operations.

Commenting on prospects, the chairman said he 'has every confidence in the group's ability to deliver future profit growth'.

The group is paying a final dividind of 10p, giving a total payout for the year of 15.5p, up from 14.5p the previous year.