The company reported a loss after tax of £2.71m in the six months to 30 September, from a £3.23m loss the previous year.
Group revenue at Hornby has increased 15% to £15.9m from £13.8m in the first half of 2018, as the company ramped up full-price sales and ‘pulled the handbrake’ on discounting. Hornby said that the revised approach to discounting had been “much more painful” than expected, but said the company was through the hardest part of its turnaround plan, with trust returning and customers re-engaging.
“The thinking now is about tuning the engine and ideally adding a couple of superchargers,” it said in a statement. Hornby has outlined plans to boost its online offering by investing in its website and social media presence, noting that its current digital platform has ‘a lot of dusty old faded boxes in the window’.
“Whilst the internet has caused our physical retailers some problems, we think it will become an important way for us to reach our customers and get them excited about our product pipeline,” it added. “We want to engage more with our existing customers and recruit new ones.”
Chief executive Lyndon Davies said: “Revenue is growing, losses are narrowing and we are shifting gears in our journey back to profitability and beyond.”
Hornby’s net debt widened from £1.8m last year to £8.4m this year, due to spending on stock ahead of the Christmas trading period.