However, model company has decided not to pay a dividend for the second year in a row.
As the firm continues to deliver on its turnaround plan, Hornby stated that the decision has “again been taken not to pay a dividend” after payouts were halted last year, saying the board continues to keep the dividend policy under review.
It reported exceptional items of £3.3m, down on last year’s £7.9m, including costs, in part relating to the restructuring of the business. Hornby said net cash at 31st March was £1.5m, compared to £7.2m net debt last year.
The firm has been in the midst of a turnaround plan and reconfirmed the first stage of that was completed, including a reduction of business scale and costs, as well as a streamlined European operating model. And the outlook ahead is rosier, with Hornby saying it was improved now the first stage of the plan has been completed.
Next on the company’s agenda will be bolstering the “strong profitability” of the Hornby, Airfix and Humbrol brands, improving Scalextric’s performance, and growing its European and US business.
Steve Cooke, Hornby’s chief executive, commented: “Our results to March 2017 provide solid evidence of our delivery in phase one of our turnaround plan; notably in terms of cash flow performance and gross margin improvement during the year. We are determined to build on this progress as we move to the next phase of the turnaround plan. We have built a sound platform for growth over the last 18 months and we are now planning to deliver sustainable profit and net cash generation into the medium term. The current financial year has started positively, and we are well placed to achieve the board’s expectations for the year.”