Hornby back on the right track
We've featured Hornby a couple of times in our maudlin Deathwatch pieces, but there's good news! The hobby company say that they've made "material progress" in their efforts to turn thing around, and their losses have halved.
Model progress. Back on the right track. A pun about glue.
Anyway, the model train company made a statutory loss of £0.52m in the first half of its financial year, which is down from more than £1m in the same period last year. The business returned to profit as sales rose by 8%, with trading profit reaching £0.25m from a £0.85m loss in 2013.
Hornby had a tough time after the 2012 Olympics after they stuck huge discounts of up to 85% after they failed to sell their Olympic merch. However, things are getting better and basically, while Hornby seem hopelessly outdated, it is nice that they'll still be around for a while, because it is nice to have a Britain that has Hornby in it.
So what is the reason for this upturn? Well, sales of model rail products rose 18% and the company launched some successful products, including the Scalextric Quickbuild Cops n Robbers set.
Chief executive Richard Ames said: "We are encouraged with the advances that the group is making. During the first half of the year, the team has made material progress in organising the turnaround of the company."
"The move to the new warehouse facility has been completed smoothly, which gives us the foundations on which we have the room to grow. Looking ahead, the results for the full year will depend on the success of the Christmas trading season."
"Current indications are that it will meet our expectations."