Last checked at 10 Jan 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 period from 1 October 2022 to 31 December 2022.
Business Performance
Group sales for the third quarter covering the key Christmas trading period were ahead of the same period last year. As a result, cumulative group sales for the financial year to date are ahead of last year by 6%. This has been driven by better availability of stock, price increases, and investment in e-commerce platforms and digital media. However, these sales figures are behind budget due to the challenging consumer economic climate and will impact our full year figures. Order book remains strong ahead of our 2023 product range releases.
Our direct to consumer sales continue to increase and are 44% ahead of the same period last year.
Financial Position
Net debt at the end of December 2022 was £7.6 million compared to net debt £4.9 million at the end of September 2022. The Group retains a strong funding position with significant liquidity headroom available against its existing facilities
Outlook
We remain cautious in our outlook for the full year and beyond due to a high level of uncertainty around the impact of several factors on our sales such as inflation and mortgage costs for consumers but with employment expected to remain high we are hopeful that the confidence in consumer spending remains.
We are excited about the Group's 2023 product range which launches today. In particular the Group is launching this month a new control system for trains utilising Bluetooth® technology to connect to phones or tablets, which will replace traditional systems in the market.
Our current forecast to year end March 2022 is a modest underlying loss before tax.
Executive Chairman, Lyndon Davies commented:
"Sales at Hornby continue to grow with a stream of new products in the pipeline. We look forward to the continued growth in direct relationships with our customers."
Hornby will announce its preliminary results for the year ended 31 March 2023 in June.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
-ends-
Enquiries:
Hornby plc
Lyndon Davies, Exec Chairman 01843 233 500
Kirstie Gould, CFO
Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber 020 3100 2222
Edward Thomas