Model firm Hornby still off the rails with profits
Hornby has again warned over full-year profits and the group’s chairman is to depart as the model toymaker grapples with falling revenue.
The firm, which also owns the Scalextric and Airfix brands, confirmed that its performance for the year to date has been “below expectations”, adding that, as part of a new strategy to maximise the value of its brands, Hornby will no longer sell large amounts of stock at a discount.
“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.
“It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year.”
New chief executive Lyndon Davies was drafted in earlier this month and has been tasked with driving through the remaining stages of an overhaul. Interim chairman David Adams has told the board he intends to step down.