Hornby shares hit the buffers after £6m loss
Hornby shares hit buffers after £6m loss: Sales of the model train maker fall short of expectations
Shares of Hornby fell more than 15 percent after it made a loss.
The model train maker posted a loss of £5.9m for the 12 months ending March 31, 2023 as the consumer crisis hit business.
The crucial Christmas period fell short of expectations, investors were told.
Hornby ended the year with £21.3m in stock, up 29 per cent, and as a result debt levels rose from £0.3m to £6.9m.
And as Chairman Lyndon Davies noted, “These increased inventories are putting pressure on cash.”
Passion: Sir Rod Stewart (pictured in 2019) revealed his own model railroad set, which he has been creating for 26 years
The company is targeting single-digit to low-double-digit revenue growth in the coming year.
Sir Rod Stewart unveiled his own model railway set in 2019, which he has worked on for 26 years.
Other well-known enthusiasts are Tom Hanks, Jools Holland and broadcaster Anne Diamond.
But it didn’t help the business, which said, “The year started well, but in the key trading period October-December, sales were very disappointing and did not reach the level predicted a few months earlier.”
Shares fell 15.6 percent, or 3.5 pence, to 19 pence.