Hornby warns over profits as chairman disembarks
The Scalextric-to-Airfix business said its performance for the year to date has been ‘below expectations’.
Hornby has again warned over full-year profits and the group’s chairman is to quit as the model toymaker grapples with falling revenue.
The Scalextric-to-Airfix business confirmed that its performance for the year to date has been “below expectations”, adding that, as part of a new strategy to maximise the value of its brands, Hornby will no longer sell large amounts of stock at a discount.
“This, coupled with the new approach to discounting stock, means it is now clear that the shortfall is unlikely to be recouped in the current year,” Hornby said.
“It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year.”
New chief executive Lyndon Davies was drafted in earlier this month and has been tasked with driving through the remaining stages of an overhaul at the troubled firm.
Hornby’s turnaround has seen it reduce product ranges and cut back on investment as part of plans to shore up the balance sheet.
To compound matters, interim chairman David Adams has told the Hornby board he intends to step down to take up another appointment.
Earlier this year, Phoenix Asset Management increased its stake in Hornby to about 72%, seizing control of the firm.