NEWS

Losses narrow at Hornby as sales dip further

Published on: 9th April 2019

Hornby has reported a fall in revenue and another year of losses as it continues to be affected by supply issues.

According to a report in the Financial Times, Hornby has issued a trading update which states that revenue for the 12 months ended 31st March will be lower than the previous year’s £35.7m, largely due to continuing issues in its supply chain.

The update claims that these historical engineering problems have begun to tail off, although Hornby has admitted that ongoing problems led to stock being ordered late and subsequently not arriving in stores on time over the past 12 months.

The group reported what it described as a “significantly lower” loss compared to the previous year’s £9.9m, in line with the board’s expectations, despite reduced product availability and lower sales in the first half of the year.

“We are rebuilding trust with our customers and suppliers,” Hornby said in a trading update ahead of the release of its full results in June.

The trading update also said that a new strategy under Phoenix Asset Management, which took control in 2017, is beginning to show results, and highlighted the fact that underlying margins have improved and a reduction in overheads has continued. It attributed its lower-than-expected loss to “a focus on doing more with less.”

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