With its first profit in nine years, Hornby accelerates its turnaround.
Hornby, the model train firm, has announced that it has turned a profit for the first time in nine years.
After several years of struggling, bosses stated the company was back on track, with a £300,000 pre-tax profit compared to a £3.4 million deficit the year before.
Thousands of hobbyists turned to model trains and sets amid lockdowns as a result of the Covid epidemic, which saw the corporation overcome a succession of challenges in recent years.
“Despite the many challenges posed by Covid-19, the old adage that people turn to hobbies in times of recession proved correct, and sales increased across almost all channels and brands except concessions, which were closed for the majority of the year due to lockdowns,” said Chairman John Stansfield.
“The new product development cycle is now established, and we have already begun work on the development of product ranges for 2023,” he added.
“Our investment in new product development continues to rise, and we are working on a considerable number of new launches and ranges.
“In both Hornby and Scalextric, we have continued to find opportunities in current ranges to incorporate technologies such as wireless vehicle control from a smart phone.”
Total sales increased by 28% year on year to £48.5 million in the 12 months to the end of March, thanks to improved online availability.
Although the company did face delays earlier this year owing to import concerns relating to Brexit, supply chain interruptions from the Far East have mostly been avoided, with the bulk of goods arriving securely.
Hornby halted shipments to the EU in late 2020 due to Brexit-related paperwork and logistics uncertainties, but it has resumed in recent weeks, according to the business.
“There are still delays in certain nations whose procedures are unduly rigid,” said CEO Lyndon Davies.
Looking ahead, the CEO stated that revenues have been growing in line with forecasts since March, despite the fact that the company remains “alert and flexible to react as necessary” to developments during the pandemic.