Last checked at 25 Apr 2023 07:00
Hornby Plc ("Hornby" or "the Group")
Trading Update
Hornby Plc, the international models and collectibles Group, is today updating shareholders on trading for the 4th quarter ending 31 March 2023.
Business Performance
After a 3rd quarter sales performance that fell short of expectations, Group sales for the 4th quarter were more encouraging and ahead of the same period last year.
The stronger close to the year, however, did not fully recover the shortfall in performance in the 3rd quarter and, whilst Group sales and gross margins for the financial year ended 31 March 2023 were ahead of the prior year, we remained behind internal budgets for the full-year.
The Group's direct-to-consumer sales continue to increase strongly, at 49% ahead of the same period last year, and our overall performance continues on the positive growth trajectory of recent years.
We expect to report a modest underlying loss before tax this year on account of increased overheads (in an inflationary environment) and as a result of lower than anticipated sales versus budgets.
On 23 January 2023, Olly Raeburn started as CEO and Lyndon Davies became Non-Executive Chairman.
Financial Position
Net debt as at 31 March 2023 was £5.8 million compared to net cash of £3.9 million at the end of March 2022 mainly due to the increased inventories at year end and shortfall in sales.
More information will be included in the full year results announcement.
Outlook
We remain cautious in our outlook due to a level of uncertainty around the impact of several factors on our sales such as inflation, mortgage increases and the rising cost of living for all consumers.
Hornby will announce its preliminary results for the year ended 31 March 2023 in June.
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Enquiries:
Hornby plc
Olly Raeburn, CEO 01843 233 500
Kirstie Gould, CFO
Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber 020 3100 2222
Edward Thomas