Hornby turnaround plan showing progress

Published on: 7th February 2017

Structural changes to the UK business have been completed.

Hornby-480Hornby Hobbies has reported that its turnaround plan is progressing as expected. It is at an advanced stage in transferring key European operations to the UK, and the company expects this to be completed by the end of the financial year.

An update said: “The rationalisation of the product range and associated reduction in capital expenditure were delivered in line with our plans. New catalogues for the 2017 product range have been launched and were received positively by our customers and consumers. The closure of the concession channel is proceeding as planned and we have continued to steadily reduce group stock levels while taking care not to disrupt core sales through existing channels”.

At 31st December 2016, stocks were £11.2m (2015: £15.5m) and net debt was £2.7m (2015: £6.4m)

It continued: “As previously announced, revenue is expected to decline by around 20-25% this financial year due to the rationalisation of the business. Group revenue reduced by 25% year on year during the Christmas period and UK revenue was down by 21%, in line with expectations. Underlying Christmas trading was healthy and we have enjoyed a solid January sales period. All sales channels have performed in line with or better than our expectations. In particular, sales to independent retailers were robust with positive growth of 4% year on year during the period as we continued to strengthen partnerships with these important customers.”


Maxi Toys acquired by King Jouet

Rubies and Bristol Novelty to merge

DreamToys transitions to digital event

Intu Trafford Centre up for auction

Basic Fun’s Pound Puppies partner with Dogs Trust

The London Toy Company teams up with Wow! Stuff for new release

New York Comic Con

New York Comic Con moves to virtual event


Asmodee set to launch virtual AsmoFair

Exclusive: NPD looks at the UK toy market in recent months

Be part of the October Licensing Special issue of Toy World