Hornby’s boss

admits it has suffered a “fall from grace” as he vowed to revive the toy train maker’s fortunes.

Lyndon Davies slammed “mistakes of the past” by former management as the firm revealed a £10million annual loss. It triggered a 17% slump in the share price, slashing its stock market value to just £26m.

Davies insisted: “Tough decisions have now been taken and we are currently laying down the foundations for our future success.”