Hornby (HRN)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

 31.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 39.35
  • 52 Week Low: 25.58
  • Currency: UK Pounds
  • Shares Issued: 124.63m
  • Volume: 0
  • Market Cap: £38.64m
  • RiskGrade: 177

Hornby warns over larger-than-expected full-year loss

By Michele Maatouk

Date: Thursday 25 Jan 2018

LONDON (ShareCast) - (ShareCast News) - There was more bad news for Hornby on Thursday as the AIM-listed model train set maker warned that full-year losses are likely to be bigger than it had expected.
The company, which makes the iconic Scalextric toys, said that the reduction in discounting and a continuation of late product deliveries in the international segment, and a disappointing sales performance over the key Christmas "had an equal impact upon the underperformance of the business".

"We now have some visibility into the outcome for the full year and because of the revenue shortfall, the underlying loss after tax is likely to be larger than the board's expectations," it said.

Hornby had announced last October that it would no longer offer for sale large quantities of stock at a discount as it looked to maximise the value of its brands over the long term. It said on Thursday that while there has been "overwhelming support" for the move, rebuilding the trust in the pricing architecture takes time and some of its retail partners are taking longer than others to accept the new approach.

It said the new management team have made a significant impact on the ongoing cost base reducing fixed overheads by £1.7m since joining, with further procurement efficiencies to come as the group reorganises its supply chain towards mutually beneficial partnerships.

Interim chairman and chief executive officer Lyndon Davies said: "We remain committed to the strategy that was outlined in the half year results. We are already starting to see evidence of positive momentum in the pre-orders for our new product ranges that were announced at the beginning of the year as well as old retail partners re-engaging following the end of the discount-era.

"The design and production cycles are long in this business and whilst we are excited about the products we have in the pipeline, it will take time for the new products to come through and for the trust with our customers to be fully rebuilt.

"The change in strategy has meant that the Christmas trading period was tough and there is likely to be some more volatility as we find out how off-peak trading performs for the first time in years without discounting. Despite this, we are determined to weather the storm and come out the other side with stronger brands, loyal customers, a leaner cost base and a better foundation from which to build a profitable and growing business."

At 0940 GMT, the shares were down 7.3% to 21.96p.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Hornby Market Data

Currency UK Pounds
Share Price 31.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 39.35
52 Week Low 25.58
Volume 0
Shares Issued 124.63m
Market Cap £38.64m
RiskGrade 177

Hornby Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
3.57% above the market average3.57% above the market average3.57% above the market average3.57% above the market average3.57% above the market average
23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average
Price Trend
58.69% above the market average58.69% above the market average58.69% above the market average58.69% above the market average58.69% above the market average
38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average
Income Not Available
Growth
54.79% below the market average54.79% below the market average54.79% below the market average54.79% below the market average54.79% below the market average
50% below the sector average50% below the sector average50% below the sector average50% below the sector average50% below the sector average

Hornby Dividends

No dividends found

Trades for --2020

Time Volume / Share Price
0 @ 0.000p

Hornby Key Personnel

CEO Lyndon Charles Davies

Top of Page