Hornby back on track as ‘root and branch’ restructure bears fruit

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.”

About Robert Hutchins

Robert Hutchins is the editor of ToyNews and its sister title, Licensing.biz. He has worked his way from Staff Writer to Editor across the two titles, having spent almost eight years with both and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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