Hornby PLC (LSE:HRN) has unveiled an increase in sales over the year to March, despite a downtrodden fourth quarter partially due to Red Sea shipping disruptions.
Over the full year, group sales increased by 2% to £56.2 million, the model train maker said on Monday.
This was despite an 8% drop in sales over the fourth quarter, as Red Sea delivery delays from pirate attacks in the area hit, alongside this year’s early Easter.
Hornby said it faced a loss for the full year, though added this was in line with previous guidance.
“Whilst we close the year in a loss-making position and both net debt and inventory are still too high, we have seen a marked change in trajectory since the half year and aim to continue this positive improvement throughout the current financial year,” Hornby added.
Net debt sat at £14.3 million as of March, against £5.5 million a year ago, while stock reduced by 12% since the half year and was “slightly lower” year on year.
Hornby highlighted recent investment in new sales and marketing teams, alongside research, data and loyalty capabilities.
“We expect [this] to start improving our revenue and margins positively this financial year through the identification of new customers, opening up of new territories and launch of new product ranges,” the group said.