Difficult period but model railway company on its way to Christmas shopping | So Good News
A listed model railway business believes it is well placed ahead of the key Christmas trading period, but its chief executive noted the group has had to navigate a “difficult” first half of the financial year, with pre-tax losses widening.
For the six months to 30 September 2022, Hornby reported turnover of £22.4m compared to £21.8m in the same period in 2021.
Pre-tax losses also increased from £745,000 to £2.88m, although gross profit increased slightly from £10.1m to £10.7m.
Hornby’s executive chairman Lyndon Davies noted that revenues had “marginally increased” during what was the first half of a “difficult trading period in 2022/23”.
“It is over forty years since Britain last experienced an inflationary shock on the scale we are witnessing today; and the British economy of the 1970s – with its reliance on highly subsidized and geographically concentrated heavy industry – was incomparably different from today’s economy. , ” he said.
However, Davies remained upbeat, adding: “A year ago second half sales were held back by supply chain disruptions, but we are now in a stronger position, having taken strategic decisions to increase stock to support sales and avoid lack.
“As we head into our important Christmas trading period, it is difficult to predict the outcome for the full year result, but we are well placed, with our order book very strong and higher than it was a year ago.”
Earlier this month, Hornby announced that Olly Raeburn had been appointed as the group’s new chief executive. He will join the company on 23 January 2023.
Margate-based Hornby was founded by Frank Hornby, who launched the first tin locomotive in 1920.