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Retail

Hornby losses narrow as key Christmas period looms

Despite several years of financial difficulty, the toy and model maker said it was “through the worst of it” with trust returning to the brand

Hornby PLC (LON:HRN) saw losses narrow again in its first half as the toy maker's turnaround efforts continued ahead of the crucial Christmas period.

For the six months ended 30 September, the AIM-listed firm reported a pre-tax loss of £2.8mln, less than the £3.2mln loss a year ago, while revenues jumped 15% to £15.9mln.

READ: Hornby's losses substantially reduced

The company, best known for its model railway kits but which also owns the Scalextric, Airfix and Corgi brands, has been looking to return to profitability after several earnings warnings in recent years and an attempted hostile takeover in 2017 from Phoenix Asset Management.

However, despite its recent problems the company said it was “through the worst of it” with trust returning to the brand and customers re-engaging with its products.

While Hornby said it was “difficult to tell” what its full-year results will be ahead of the key Christmas trading period, its sales were “above where they were last year” and that they would “hurry towards profitability” as quickly as possible.

"Revenue is growing, losses are narrowing and we are shifting gears in our journey back to profitability and beyond", Hornby chief executive Lyndon Davies said in a statement.

In early trading on Thursday, Hornby shares were 1.5% higher at 33p.

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