Shares in Hornby Plc (LON:HRN) steamed higher today after the model railways to Scalextric maker said it expects to meet its full-year forecasts as its restructuring programme remains on track.
The AIM-listed group said revenue is expected to decline by 20% to 25% year-on-year in the current financial year due to the restructuring of its business.
Hornby added that group revenue was down 25% over the Christmas period, with UK revenue falling 21% due to the move by the group to its slim product range and exit concession arrangements in the UK.
But the firm said it remains confident of meeting its expectations for the year to March 31, while noting it will be loss-making as it progresses through its "transition".
Hornby said the changes being made to its UK business are now complete and the process of transferring key European operations to the UK are due to be completed by the end of its current financial year on March 31.
Steve Cooke, the group’s chief executive, said: “Our improved financial position is evidence of the success of the first stage of the turnaround. Hornby is well positioned to continue its transition to profitability and higher cash generation.”
In reaction to the reassuring update, Hornby shares leapt over 18%, or 5.75p higher to 37.00p.