Hornby cheers festive trading boost as it attracts new customers
Hornby said sales lifted 7% in the quarter to December 31, with 23% revenue growth for December alone.
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Your support makes all the difference.Scalextric and model train firm Hornby has revealed a boost to sales after solid Christmas trading as it continues a turnaround with advice from Frasers founder and billionaire Mike Ashley.
Hornby said sales lifted 7% in the crucial quarter to December 31, with 23% revenue growth for December alone.
It cheered strong trade from first-time customers as its direct-to-consumer sales pick up pace, with the group seeing nearly half of all Black Friday sales from new customers, up from 42% a year earlier.
We are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way
The Margate-based company said the strong festive performance has helped overall group sales lift by 8% in the financial year to date, with gross profits 10% higher.
Shares lifted 6% in Wednesday morning trading.
The firm said in March that Mr Ashley would advise Hornby after building up an 8.9% stake in the model train specialist, becoming its third largest shareholder.
The toy company said the retail tycoon “entered into a consultancy arrangement” as it sought a financial turnaround.
It is hoped the move can help spark a financial turnaround at Hornby after it had seen losses mount.
Shares in the company slipped to their lowest price for decades at the end of 2023 as a result.
On Wednesday, Hornby said its turnaround plan was “very much on track”, confirming that it remains on course for growth in the year to March 31.
Chief executive Olly Raeburn said: “In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter.
“Concurrently we are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way.”