Having received three profit warnings in the last five months, the company has managed to secure a waiver for March.
The company said: “The Group is engaged in constructive dialogue with Barclays Bank, and is pleased to announce that the Bank has agreed to waive the March covenant tasks.”
Hornby reassured “that recent trading remains in line with expectations”. It also said that so far during the six months to March, its sales have declined 2%, although sales in the UK business are up 4% year-on-year.
Hornby’s chief executive left the company last month. Executive Roger Canham commented: “The Group welcomes the continued support from its lender, Barclays. Recent trade has been encouraging and the Board is pleased with the positive like-for-like growth that our core business is delivering. We will update shareholers on the continued progress that we are making when we announce our results for the year in June.”