The warning has hit share prices today as the firm said its full-year profits are likely to be lower than expected.
Hornby has said, however, that its ranges for 2012 have been well received. The statement said:
"At the London Toy Fair earlier this week, we showcased our major product introductions for 2012. Leading this programme is our range of London 2012 merchandise, produced for the London Games which start in July this year.
"Our retail listings for this event in mass market channels of distribution are very strong and these new channels represent a unique opportunity to launch mass market ranges following on from our London 2012 range."
Other new products include Scalextric Star Wars product; Olly the Little White Van licensed range; a newly tooled range of collectable Corgi die cast toys designed to hit the key £1.99 price point; the distribution of the Breyer Horses line in the UK, with a flagship War Horse collection and the Kings of War games from Mantic; and new ranges based on Moshi Monsters.
Hornby will announce its preliminary results for the year ended March 31st 2012 in early June.
Chairman, Neil Johnson commented: "The challenging economic environment impacted UK sales negatively pre- Christmas. In anticipation of continuing difficult trading conditions, we have adapted our business to offer a wider range of products at lower price points in categories complementary to our core business.
"We maintain an undiminished focus on the development of our core ranges whilst continuing to broaden our product range, appeal and geographic reach. It is however proving extraordinarily difficult to predict sales accurately in these turbulent markets.
"The successful acquisition of a number of important global licenses reinforces our mission statement: To be the most successful model, hobby and collectable toy company in the world."