Hornby issues another profit warning, announces chairman departure
Model train set maker Hornby issued another profit warning as it announced the departure of its chairman.
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The company also said that following an initial review of the business by new chief executive Lyndon Davies, it has decided to stop offering for sale large quantities of stock at a discount in order to maximise the value of its brands over the long term.
Hornby said last month that its performance in the year to date had been below expectations.
“This, coupled with the new approach to discounting stock, means it is now clear that the shortfall is unlikely to be recouped in the current year,” the group said on Tuesday.
“It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year.”
In addition, Hornby said interim chairman David Adams plans to step down from the board to take up another appointment. The search for an independent non-executive chairman is progressing and a further announcement will be made in due course.
At 0950 BST, the shares were down 0.2% to 32.95p.