Hornby hits buffers

hOrNBY has come off the rails again after admitting it has breached the conditions of a loan agreement.

The model train maker said it was also in talks with new lenders to raise debt to help the business return to profitability.

It had net cash flow of £4m at the end of the financial year. Shares in the 117-year-old Kentbased company fell 6pc on the news yesterday but recovered to close flat at 24.5p.

hornby explained that lower sales of its railway sets and Scalextric car race tracks over the past three months meant it was seeking additional financing.