Hornby in fresh talks with lenders

TROUBLED toymaker

Hornby has opened talks with its lenders over a financing package as the firm warned that profits would be lower this year.

The Scalextric-to-airfix business, which is trying to turn itself around, said its strategy will require more cash and it is 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.

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

Shares were down six per cent to 23p after the update.