Hornby Hobbies has reported a widening of its pre-tax losses in the six months to the end of September as revenue continues to decline.
Despite the results, the company bosses have insisted that the firm’s turnaround plans were ‘progressing well’, with trade remaining steady for the first half of the year.
Hornby – famed for its model train sets and Airfix models – outlined its plans to turn the business around in June this year following a run of disappointing profit results.
The firm has reported a pre-tax loss of £4.7m versus a £4.5m loss the year before, with group revenue falling to £21.9m from £22.3m.
However, Hornby’s chief executive, Steve Cooke has maintained an optimistic outlook, citing that the company is ‘making good progress with the on-going turnaround.’
“We are delivering the structural changes to reduce business scale and costs and to streamline the European operating model,” he said.
“We are currently focussed on the Christmas trading period as well as ongoing stock reduction initiatives.
“The group has traded steadily during the first half of the year but revenue is expected to decline significantly year on year in the second half as the planned rationalisation of product lines, channels and certain international brands takes effect.
“We remain confident of meeting the board’s financial targets for this financial year.”