'Back on track' after festive trading, says Hornby

Model train company Hornby said its financial turnaround was "very much on track" after a boost in sales over the festive period.

Hornby posted a £5.1m loss in the six months to September 2023, but entered into a "consultancy arrangement" with billionaire Mike Ashley last March to help steady the ship.

The Margate-based firm has now revealed sales lifted 7% in the quarter to December 31, with 23% revenue growth for December alone.

Chief executive Olly Raeburn said: "In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter."

Hornby, which also makes Scalextric, says it is also attracting new customers, with nearly half of all Black Friday sales from first-time buyers - up from 42% a year earlier.

The company said its strong festive performance had helped overall group sales lift by 8% in the financial year to date, with gross profits 10% higher.

Shares in the company slipped to their lowest price for decades at the end of 2023, but had lifted 6% in Wednesday morning trading.

On Wednesday, Hornby said its turnaround plan was "very much on track", confirming that it remains on course for growth in the year to March 31.

Mr Raeburn said: "We are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way."

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