Hornby says business is getting back on track

0 The famous British model maker is expected to report a much lower loss for the full-year period

Hornby is to post another loss this year, but the famous model train maker has insisted it is on the right track.

The group, which is also behind the Scalextric and Corgi brands, said that revenue for the year is set to come in lower than last year’s £35.7 million because of a shortage of stock arriving on time and in full in the first half.

“We have previously discussed the difficulties caused by technical specifications and purchase orders being sent to the factories late in

2017,” the firm said. However, Hornby added that its underlying margins have improved and a reduction in cost overheadshascontinued,meaning the annual loss will be significantly lower than last year’s £7.6m.

The firm has been through a choppy period of late and has been forced to issue profit warnings as management battles to turn the firm around.

The group is now majority owned by Phoenix Asset Management and headed up by Lyndon Davies.