Hornby profit falls in half year results - ToyNews

Hornby profit falls in half year results

Hornby has announced its half year results for the period ended September 30th 2009.
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Sales for the period were up by five per cent to £25.5 million £24.2 million in 2008. But pre-tax profits fell to £0.7 million from £1.8 million.

During the period, the firm has reduced its net debt to £14.7 million and improved its supply chain.

In the UK, sales of £18 million were 1.5 per cent higher than the same period last year. Corgi and Airfix performed well, whilst model railway and Scalextric sales fell.

The firm is putting this fall in down to retailers delaying taking inventory ahead of the Christmas period, but the firm said it is now beginning to see an improvement in year-on-year orders received.

Sales of Scalextric sets priced at the top and lower ends of the range remained robust, whilst demand for sets priced in the middle of the range was more muted. The firm anticipated this trend and as such has introduced several new Micro Scalextric sets that have proved popular. In particular the Micro Scalextric 'Need for Speed' and Disney’s 'Cars' sets are selling particularly well.

The recent success of the Brawn F1 team and Jenson Button’s victory are expected to provide a significant boost to the sales of Scalextric and Micro Scalextric.

Hornby holds the exclusive worldwide licence to produce slot racing products featuring the Brawn team and Jenson Button. The first products carrying this licence will be available in time for Christmas 2009.

Frank Martin, chief executive of Hornby, said: “The outlook for Hornby continues to be positive. The business has been boosted by improvements to our supply chain. The volume of shipments we are receiving is increasing on a weekly basis. This will enable us to satisfy the demand for products as we approach the Christmas period.

“The Group has a broad portfolio of products selling in many different countries. We are delighted that sales are continuing to grow strongly in Europe. The model railway market continues to have excellent potential for growth.

“We have been awarded the licence to produce a wide range of merchandise across our brands for the London 2012 Olympics. The first product, a limited edition London – Beijing – London handover bus is now in the shops. We will be rolling out other collectible ranges during 2010.

“Looking to the future, we are excited about the potential for the Group to drive the performance of our brands. Despite the challenging markets our wide brand portfolio provides the stability and firm platform for future growth.”

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Good year for Hornby

Hornby hasĀ  announced its preliminary results for the year ended 31st March 2007, with turnover up and profits improving slightly.

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