Hornby swings to profit as sales surge

Hornby shares steamed ahead on Thursday after the model train set maker said it swung to an interim profit as revenues surged.

In the six months to 30 September, the company swung to a statutory pre-tax profit of £17,000 from a loss of £2.5m in the same period a year ago, with revenues up 33% to £21.1m.

Hornby had net cash of £4m versus net debt of £8.4m in 2019.

The Scalextric maker said it had seen more online sales than it predicted and at the half-year point, it had exceeded the sales levels through this channel achieved in the entire 2019-20 financial year.

"Families stayed at home, where they spent more time buying online, and using our products," it said.

Chief executive Lyndon Davies said: "Hornby has moved into profitability, the growing sales and margins built on the back of the introduction of some fantastic new products, new technology and the changing environment."

He added: "As I have said before (and no doubt will say again) past experience tells us that during periods of crisis people often turn inwards, finding comfort from things they know and love - among which are our great brands, supporting their hobbies and interests."

The company said that heading into the key Christmas trading period, it is hard to tell what the outcome will be for the full year.

"Our sales continue to be higher than where they were last year, and there is a real energy within the company for the Christmas season," said Davies.