Hornby growth plans on track after Black Friday boosts sales
The Margate-based company saw shares move higher in early trading on Wednesday.
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Your support makes all the difference.Model train specialist Hornby has revealed a rise in sales over the latest quarter after it was boosted by strong Black Friday trading.
The Margate-based company saw shares move higher in early trading as a result.
Bosses said Hornby has made progress in its strategy to return to profit after sliding to a £5.9 million loss in the previous financial year.
On Wednesday, the company said profit margins have improved recently as it benefited from more direct-to-consumer trade and full-price sales.
Hornby reported that group sales rose 5% over the quarter to December 31, compared with the same period in 2022.
The models and collectibles business said this meant sales over the first nine months of the current financial year were up 6%.
Recent sales were aided by a “strong” performance around Black Friday in November, helping sales move 10% higher year-on-year for that month.
The group also reduced its debt position over the quarter, with net debt at £13.5 million in December. It had been £14.6 million in September last year.
Olly Raeburn, chief executive of the firm, said: “As outlined in our interim results to the end of September, this is a year of significant strategic, structural and operational change, requiring investment in many areas.
“We continue to make good progress on our key strategic initiatives and look forward to a return to profitable growth in the next financial year.”
It comes amid wider pressures in the model railway industry, which saw Widnes-based Hattons Model Railways reveal earlier this month that it will cease trading after 77 years.
Shares in Hornby were 3.2% higher at 16p on Wednesday morning.