Plans to rescue Hornby’s 25 per cent fall in revenue to £35.7 million in the 12 months to March, has been likened by chief executive Lyndon Davies to ‘booking a table at a restaurant last minute.’
The executive has been forthcoming about the company’s shortcomings that has seen it take losses from £9.5 million to £10.1 million year on year. The firm issued a profit warning in October last year, following two previous warnings within the span of 18 months four years ago.
The Corgi car, Hornby trains and Scalextric maker said its latest sales are weaker than expected, after reporting deepening full-year losses for the year to March 30, while CEO Davies has compared Hornby’s recent strategy to a disastrous night out.
Trying to fix the problems has been ‘similar to trying to book a table at a restaurant at the last minute,’ he said in a statement.
“As you might expect, most of the restaurants were unavailable, so we desperately rang around and booked the best available table we could find. We then arrived late with less people in the party than we’d promised, we didn’t order all of the meals, forgot to tell the kitchen how we wanted our steaks cooked, changed our mind on the side dishes and then complained when we found the restaurant was closing and there was no time for dessert.”
The company is now pursuing a shift in strategy after Phoenix Asset Management took control last year. This includes removing discounting and improving management of its inventory and supply chain.
“In the first seven months that I have been at Hornby, we have assessed our position and confronted the reality of the situation in which we find ourselves,” said Davies.
“Tough decisions have now been taken and we are currently laying down th foundations for our future success.”