NEWS

Discounting cutbacks see losses narrow at Hornby

Published on: 29th November 2019

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.

RECENT ARTICLES

Friday Blog

I couldn’t have put it better myself…it’s the Friday Blog!

New My Fairy Garden play sets launch with biggest campaign to date

Exclusive: Sambro details Ethical and Sustainability remit

Tandem Group appoints new director of Digital & Marketing

Orchard Toys smashes £10k fundraising target for hospice charity

Licensing U programme reimagined for 2022

CEO Andre Javes departs Toys R Us Asia

Roblox sues WowWee over new doll range My Avastars

Playmobil launches its first sustainable product range, Wiltopia

Exclusive: A look ahead with Mattel