Hornby makes return to profit

Back in the black
Back in the black

Scalextric and model railway firm Hornby has posted its first profit in three years and raised £15 million to complete the overhaul of the firm.

The Kent-based company, whose brands include Airfix, Scalextric and Corgi, said its underlying pre-tax profit was £1.6m in the year to the end of March, compared with a £1.1m loss a year ago.

It said its Scalextric Continental Sports Cars set, its Airfix model of the Typhoon celebrating the 70th anniversary of D Day and its reissue of the Aston Martin DB5 that James Bond drove in the movie Goldfinger were all strong sellers during the year.

The group said it raised £15m by selling 15.7m shares at 95p to upgrade its European warehouses and invest in its social media arm.

In March, the business set up an e-commerce team which will keep customers informed about its latest promotions via Twitter, blogs, Facebook and other social media.

“I am pleased to announce that, after a year of hard work and numerous challenges, Hornby has returned to an underlying profit,” said the firm’s chief executive Richard Ames .

“We are improving product deliveries and quality from our supply chain, and I remain confident that the turnaround plan will continue to deliver further improvements.”