Exchange rate loss takes Hornby off track
Toy and model specialist Hornby has reported trading in line with expectations at operating level in its last quarter and that it expects to deliver a performance for the year around breakeven at the underlying pre-tax level.
However, the group has suffered a further £0.2 million foreign exchange loss since its last trading update in January that will now lead to an expected £1.2 million loss overall.
Hornby is currently negotiating new facilities with its main bankers based on its operating plans for the next financial year. The negotiations are expected to complete by the time the results for the year ending 31 March 2014 are announced in June.
In February, Hornby appointed former Ladbrokes and Dixons director Richard Ames as its new chief executive. His appointment followed the departure of former chief executive Frank Martin in January after Hornby announced in March 2013 that he would be retiring from the business.
Ames will join the group later this month when chairman Roger Canham will resume his non-executive role.
In today’s pre-close trading update Hornby said: “Richard has a wealth of experience and we look forward to him leading the group and driving Hornby’s future performance. The group’s plans for the new financial year are well advanced and with the main obstacle to an improved and efficient supply chain out of the way, we expect a gradual improvement in its reliability and quality. As a result we look forward to improved trading next year.”
