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: 1,836
  • Market Cap: £38.64m
  • RiskGrade: 177

Hornby narrows losses as discounting comes to an end

By Michele Maatouk

Date: Thursday 13 Jun 2019

LONDON (ShareCast) - (Sharecast News) - Hornby's annual losses have narrowed as discounting at the model train maker comes to an end.
In the year to the end of March 2019, the company's reported pre-tax tax loss narrowed to £5.3m from £10.1m the year before, while the underlying pre-tax loss narrowed to £4.4m from £7.6m.

Revenue came in at £32.8m, down from £35.7m due to a lack of product arrival in the beginning of the year. Revenue in the second half came in at £19m, up from £18.6m the year before.

The company, which has been plagued by distribution and supply problems and profit warnings, said discounting has been curtailed, new product investment has increased and a major new license agreement has been signed with Warner Bros.

Hornby compared its reliance on discounting to an addiction. "When you become addicted, it's not easy to change your habits," it said.

"The long-term benefits are crystal clear but that doesn't make the cold-turkey process any more pleasant. You can see the effect it has had on our sales over the last two years and this has been exacerbated by a poorly functioning supply chain. We have held the line on discounting and our customers are starting to finally trust that the discounting era is over."

Chief executive Lyndon Davies said the group's turnaround has begun.

"Over the last eighteen months we have created the foundations for the future across all parts of our business, we have really got to grips with the business now," he said. "We are firmly focused on the future and there is a passion reverberating around the corridors at our ancestral home in Margate which we returned to earlier this year."

As far as Brexit is concerned,Hornby said the major concerns are the importation of stock and export of sales in the case of a no-deal scenario. While it expressed confidence that the importation issues can be overcome, it said there may be delays in the short term while customs procedures and potentially tariffs bed down.

At 1055 BST, the shares were down 2.6% at 32.33p.

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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 1,836
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 27-May-2020

Time Volume / Share Price
13:42 137 @ 32.13p
12:42 1,699 @ 32.13p

Hornby Key Personnel

CEO Lyndon Charles Davies

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