Hornby returns to profitability
Hobby products company Hornby has made a return to profitability in the first half of its financial year.
In the six months to 30 September, revenue increased by 33% to £21.1 million as the company benefited from a restructuring exercise and the launch of new products and technology. This helped Hornby to report a statutory pre-tax profit of £17,000 compared to a loss of £2.8 million in the same period last year.
Lyndon Davies, Hornby chief executive, said: “Much of my time so far at Hornby has been spent on restructuring the business, correcting the problems which were allowed to build up in the past and ‘fixing the engine’. It has been a longer journey than I had hoped, but it was important to get it right.
“As you can see, during the first six months of our financial year, Hornby has moved back into profitability – a small, but significant milestone, especially considering the Covid-19 pandemic overshadowing every move we make.”
Hornby said its online sales were better than expected and by the half-year point had exceeded sales levels achieved in the entire 2019 to 2020 financial year. The company attributed this to more people shopping online and enjoying hobbies at home due to the Covid-19 pandemic.
Looking ahead, Hornby said traditionally between 55% and 60% of its sales come in the second half of its financial year.
Davies added: “We are heading into our key Christmas trading period and right now it is hard to tell what the outcome will be for the full year results. Our sales continue to be higher than where they were last year, and there is a real energy within the company for the Christmas season.”
