Hornby looks to get back on track with lender talks

0 The iconic model maker said there had been an improvement in sales at the end of last year Model maker Hornby has opened talks with its lenders over a new financing package as the firm warned that profits would be lower this year.

The group, which is attempting to turn itself around, said its strategy will require more cash and it is in the final stages of discussions with new lenders for a financing facility.

It is expected to be in place by June and, in the meantime, Hornby has agreed a covenant waiver with Barclays.

The firm, which also owns Airfix and Scalextric, said: “The board has now refined its strategy to enable the business to return to profitability.

“The investment needed to support this strategy will require a larger facility than the one currently available to the group.

“Hornby is in the final stages of discussions regarding a new financing facility with new lenders.”

The company added that, while there was an improvement in sales at the end of last year, annual revenues and profits will come in lower.