Shares in Hornby Plc (LON:HRN) got back on track after the embattled model railway maker revealed a breakthrough in talks with bankers.
The stock rose 2p, or 7%, to 30.5p after Hornby, which said in February it was in danger of breaching its banking covenants this month, said Barclays had agreed to waive its March covenant tests.
Hornby said it was in constructive talks with Barclays and reported trading in line with expectations.
Sales in the second half, which ends on March 31, were down 2% year-on-year, but the UK business was up 4% year-on-year.
Executive chairman Roger Canham said: "Recent trading has been encouraging and the board is pleased with the positive like-for-like growth that our core UK business is delivering.
"We will update shareholders on the continued progress we are making when we announce our results for the year in June."
In February, Hornby - which also makes Scalextric slot car sets and Airfix models - announced the departure of chief executive Richard Ames after forecasting wider annual losses.