Hornby reports higher sales and profit margins
The model train maker and owner of the Airfix, Meccano and Scalextric brands reported that its operations are “nearly back to normal”
Company
LON:HRN
Hornby is principally engaged in the development, production and supply of hobby and toy products. It distributes its products through a network of specialist and multiple retailers throughout the United Kingdom and overseas. Brands include Hornby, Scalextric, Electrotren, Lima, Jouef, Rivarossi and Corgi.
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The model train maker and owner of the Airfix, Meccano and Scalextric brands reported that its operations are “nearly back to normal”
The index of UK blue-chips advanced 64 points to 6,139
Revenue and gross margin the year to March 31, 202, were said to be ahead of last year and in line with forecasts
As well as being used to provide the main brands with a boost the new funds will also be invested in digital marketing
Despite several years of financial difficulty, the toy and model maker said it was “through the worst of it” with trust returning to the brand
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The model train maker announced the launch of a profit share scheme for all of its employees who contribute to the success of the business
The UK blue-chip benchmark closed down nearly 90 points at 6,960, while the FTSE 250 shed nearly 55 points
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Hornby said Lyndon Davies will step down as interim chairman to focus on his role as chief executive
Underlying losses in the year to March were £7.6mln.
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The hobbies group said: “There was an improvement in sales towards the end of the financial year as some of the European product started to arrive, but as expected, the Group sales and profits were lower than last year”
New CEO Lyndon Davies put an end to the ‘stack ‘em high, sell ‘em cheap’ strategy at Hornby, but retailers aren’t coming round to the new pricing plans as quickly as hoped
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