Chairman of Hornby quits

TOY train maker Hornby has issued a fresh profit warning after revealing it would stop offering bulk discounts for its stock and announcing its chairman has quit.

The firm, which makes Airfix and Scalextric cars, revealed interim chairman David Adams, who was appointed in June, will leave the company after a replacement is found.

Hornby has issued a string of profit warnings and its sales have slumped as it has struggled against the rise of online games.

New chief executive Lyndon Davies, who is renewing the company’s business strategy, said the firm will no longer sell large quantities of stock at a discount in order to maximise the value of its brands.

Hornby said : ‘It is expected that sales will be lower and, consequently, there will be a material impact on profitability in the current financial year.’