Hornby PLC (LSE:HRN) shares dropped 8.5% to 21.50p in early deals on Tuesday after the models and collectibles company reiterated its forecast of a “modest” full-year loss.
In a statement, the company also said sales and margins for the year to 31 March 2023 remained below internal budgets, although the fourth quarter was “more encouraging” with direct-to-consumer sales continuing their strong performance, jumping 49% compared with the same period last year.
Hornby was cautious about the outlook for the current year, citing the challenging economic climate of high inflation, mortgage increases and cost-of-living pressures.
Net debt as of end-March 2023 was £5.8mln, compared to net cash of £3.9mln a year earlier, due to increased inventories and the shortfall in sales.