Hornby PLC's (LON:HRN) turnaround is apparently staying on track – which is more than can often be said for the Scalextric cars it makes.
The company, best known for its model railway kits but which also owns the Scalextric, Airfix and Corgi brands, has been something of a basket case for several years but it claimed in today's trading update that its legacy issues are tailing off.
READ: Hornby sales keep falling
Underlying margins in the year to the end of March improved from the previous year and the reduction in overheads has continued. Although revenues were down year-on-year, primarily due to a shortage of stock (a problem that has bedevilled the company for years), the loss for the year is expected to be significantly lower than it was in the year to the end of March 2018.
“As previously explained, we are rebuilding trust with our customers and suppliers. This takes time, but the initial signs are encouraging as we move into the first full year where all the new products and marketing strategies have been designed by the new management team,” the company told shareholders.
Shareholders weren't convinced, however, with the shares dropping 4.7% to 34.60p in late morning trade.
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