Hornby believes its pre-tax profits for the year to March 31st will come in between £8.75 million and £9 million, compared with market estimates of £9.2 million.

The firm believes delays in shipments from the Far East and a spending slow down in the UK will contribute to the estimated dip.

Sales would be £56 million for the year, up almost 20 per cent on the previous year, but short of previous forecasts, it added, with the shipping delays deferring sales into the coming financial year. Last year it earned £7.7 million in pre-tax profits.

"We have taken steps to ensure that the rate of new product deliveries is improved to meet demand in the new financial year," the firm said in a statement.

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