Hornby sales gathering steam

Hobby products group Hornby has unveiled an encouraging set of annual results in what it terms as "an important developmental year". Turnover in the year to March 31st was up 6%, with UK sales recovering in the second half allowing annual pre-tax profits to creep up from £8 million to £8.1 million. Hornby indicated that the trading performance at its overseas subsidiaries had also improved and that acquired businesses Humbrol and Airfix were bedding in well.

Frank Martin, chief executive of Hornby, said: "This has been an important developmental year for the group. All our overseas subsidiaries have made excellent progress in terms of sales and profits growth and the establishment of a platform for future profitable growth. Sales in the UK, our biggest market, grew by 3% and total group sales grew by 6% due to the continuing increase in momentum of our international subsidiaries.

"First half sales were below the previous year but in the second half we were able to recover more than this shortfall, thus demonstrating once again the robust nature of the hobbyist market. Our international operations are now beginning to show their true potential, and we are confident that they will continue to deliver encouraging progress in the future.

"The acquisition of the Humbrol and Airfix assets has added new and complementary high margin business to the group and integration is in line with plan. The effect on group profits of this acquisition was broadly neutral in the year just ended. However, going forward, as we continue to rebuild sales and distribution of these famous brands through the Hornby infrastructure, we expect them to make a significant contribution to group sales and profits.

"Our core businesses of model railways and slot racing products continue to benefit from our ongoing commitment to investment in product development. Both the Scalextric and Hornby digital control systems have been extremely well received and enjoyed a strong Christmas season. In both market sectors digital control brings significant improvements in consumer enjoyment of our products. The consumer is prepared to pay higher retail prices for these benefits.

"We have continued to broaden Hornby's revenue base. In terms both of geographical coverage and sector exposure we have become a significant force in the worldwide hobby market. We will continue to explore opportunities to develop the group further." - Source: The Appointment Press Release

Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.