AGM Statement

25 Jul 2006 11:00

Hornby PLC25 July 2006 CHAIRMAN'S AGM STATEMENT Speaking today at the Annual General Meeting of Hornby Plc, the models andcollectibles Group, the Chairman Neil Johnson, will make the followingstatement. " As shareholders will appreciate, we have worked hard to diversify ouroperations. We now have a broader geographical spread and we are benefiting fromthe encouraging progress being made by our international subsidiaries. In the UK, we are encouraged by the excellent listings we have achieved; stronger in factthan last year. Our mix of concessions, large national accounts and wide spreadof independent operators, gives us a broad access to the end consumer. " In the run up to Christmas we have a number of exciting new product launches,which we expect to perform well. The reaction among our core UK customer base tothe impending launch of the Hornby Digital Control System has been verypositive. We believe that the Hornby Digital Control System will become theplatform of choice for UK model railway enthusiasts. " At Scalextric USA, we are pleased that the actions we have taken to improvethe business are paying off. The business is making steady progress and yourBoard is confident that it will continue to make a worthwhile contribution tothe overall group performance. " Traditionally the performance of the Hornby operations has been weightedtowards the second half. This year is proving to be no exception. The retailenvironment in the UK market remains challenging, reflecting the impact of theWorld Cup and the continued hot weather. Looking ahead, we will need to remainvigilant to the state of the overall market and consumer spending patterns inthe second half. Nevertheless, this year in particular, given the planned launchof a number of exciting new products prior to Christmas, we anticipate that thegroup's performance will be weighted even more than usual towards the secondhalf. " In conclusion, the Board remains confident in the prospects for the full yearand positive about the future for the Group. Our view of the UK market remainsrobust, whilst the real drivers of future growth are the rapidly developinginternational operations. I look forward to updating shareholders on theprogress that the Group is making, at the time of our half year results inNovember." -ends- Date: 25 July 2006 For further information contact: Hornby Plc cityPROFILEFrank Martin, Chief Executive Simon CourtenayJohn Stansfield, Finance Director 020-7448-324401843-233500Web: www.hornby.com---------------------- This information is provided by RNS The company news service from the London Stock Exchange