Hornby reports profit drop

Hornby posts 33 per cent fall in half-year profit, but remains hopeful for Bond and Hamilton products in the second half.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

Pre-tax profits for the first half were £1.8 million, compared to £2.7 million for the same period last year. The fall is attributed to the firm’s recent acquisition of Corgi in May and a £1.3 million increase in overheads associated with it.

The company reported more difficult trading conditions than previous years in some of its markets, which, coupled with supply constraints in its model railway business, outlined in July, resulted in sales dropping to £24.2 million, from £24.5 million in the previous year.

Turnover for the first half was £24.2 million, compared to £24.5 million year-on-year.

The firm is expecting James Bond Quantum of Solace licensed Scalextric products to perform well over Christmas along with the proposed launch of an Airfix kit featuring McLaren and Lewis Hamilton.

Frank Martin, chief executive said:

“We have made good progress during the first half of the year. The retail markets are undoubtedly more challenging. However the hobby sector has distinctive defensive characteristics, which will help us in a more difficult economic environment. Accordingly, we remain confident that the combination of our experienced management team and our strong brand portfolio will enable us to continue to drive the business forward.

“We have integrated the Corgi acquisition successfully. We are delighted that the business is performing well. Encouragingly, both Airfix and Humbrol brands acquired in 2006, continue to grow. We are sure that all three of these brands will continue to deliver excellent opportunities for growth.

“Looking forward, despite the challenges we face, we remain confident about the group’s prospects.”

In a statement, chairman Neil Johnson said:

“The Board believes that the defensive qualities of our brands and the breadth of our revenue streams will stand the group in good stead to weather better a more challenging economic environment.”

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.