3rd Apr 2018 09:54
The model railway company said in October it would no longer sell large quantities of stock at discounted prices in an attempt to return to profitability.
Hornby has refined this strategy, giving no further detail, but said it required a bigger facility than its one currently available. It is in the final stages of talks, it said, and expects to have the funding in place before it announces results for its year end March, expected in mid-June.
To support the talks Barclays PLC has waived a covenant relating to Hornby's earnings before interest, tax, depreciation, and amortisation for the quarter to March, which was needed due to reduced sales.
Hornby said the lack of discounting alongside late product delivery continued to affect sales, though they did improve towards the end of its year. However, as expected, revenue and profit will be below the prior year.
Interim Chairman & Chief Executive Lyndon Davies said: "As the dust settles on the changes to the strategy and we start to put together the line plans for 2019 and beyond, morale is starting to build in our hardworking staff and some trust is coming back with our retailers and customers; both in the
"Whilst we have managed to make a lot of progress in the first few months, there is still much more to do in terms of reducing costs, streamlining processes and adding routes to market."
Shares were down 6.0% on Tuesday at a price of
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