Hornby has told the City that its results will not be as good as forecast following poor sales of its licensed London 2012 lines.
In a statement Hornby said: “Sales of London 2012 merchandise were lower than forecast. Whilst, prior to the Games, major account listings for our products were strong, and consumer purchases were encouraging, the major retailers had also purchased substantial quantities of London 2012 merchandise from other licensees. Faced with lower than expected sales, the major retailers resorted to deep price discounting.
“The consequence of this for Hornby was that retailers lost confidence in many categories of London 2012 merchandise, and repeat orders for our products were cancelled.”
Hornby said it expects to break even for the financial year ending March 31st 2013.