Things aren’t exactly running on rails for Hornby PLC (LSE:HRN), the maker of model trains, whose shares fell 12% in the wake of its prelims.
It posted a £5.9mln loss for the 12 months ended March 31 2023 as the consumer downturn hit business.
The crucial Christmas period failed to live up to expectations, investors were told.
Hornby closed the year with £21.3mln in stock, up 29%.
And as chairman Lyndon Davies noted: “These increased stocks put a squeeze on cash.”
The company is targeting high single-digit/low double-digit revenue growth in the year ahead.
Gross margins have risen, and can rise further with increased direct-to-consumer sales, investors were told.
Despite this guardedly optimistic assessment of prospects, the shares tumbled 2.6p to 19.9p, valuing the business £33mln.