Hornby's full-year revenue to drop but losses set to narrow

Model train set maker Hornby said on Tuesday that revenue for the year to the end of March 2019 would be lower than last year due to stock shortages.

On the upside, however, the company also said that losses for the year were set to narrow and margins have improved, while the reduction in overheads has continued. In addition, Hornby said that legacy issues have tailed off.

"The focus on doing more with less through continued cost-cutting and efficiency improvements has resulted in a significantly lower underlying group loss compared to last year. The loss is in line with the board's expectations despite the reduced product availability and lower sales in the first half of the year.

"This is a real achievement under the circumstances and we are grateful to our passionate and hardworking staff who are working tirelessly to get the group back to profitability."

The company said it was rebuilding trust with its customers and suppliers.

"This takes time, but the initial signs are encouraging as we move into the first full year where all the new products and marketing strategies have been designed by the new management team."

Back in September, Hornby said that sales from 1 April to 31 August 2018 had fallen due to a lack of discounting, excess stock in the supply chain and late deliveries.

At 0940 BST, the shares were down 0.3% at 36.19p.