Hornby back on track as 'root and branch' restructure bears fruit

Robert Hutchins

By Robert Hutchins

September 9th 2016 at 11:14AM
UPDATED September 9th 2016 at 11:39AM
Hornby back on track as 'root and branch' restructure bears fruit

Hornby cut back its European operation and reduced the number of product lines after its losses soared to £13.5 million in 2016.

Model train maker Hornby has said that its plan to return the firm to sustainable profit is back on track.

The turnaround for the firm follows a tough last couple of months throughout which Hornby implemented a ‘root and branch’ restructuring after a new software system sent it into the red.

Hornby cut back its European operation and reduced the number of product lines after its losses soared to £13.5 million in 2016.

Today, the London group told investors that ‘trading has since been in line with its expectations.’

The firm will now focus on its most profitable and cash generative product lines and market.

A representative from Hornby said: “Since the recent capital raising that was completed in July, the group is now implementing the new business plan to refocus the business in existing profitable and cash generative products, channel and geographies, while also reducing the cost base of the business to reflect projected revenue sources and a simplified overall business model.”