10th Feb 2015 08:18
LONDON (Alliance News) - Model railway and Scalextric race car set maker Hornby PLC Tuesday said its expects earnings for the full year to be in line with its expectations, with sales rising a steady 5% in the third quarter, and said it is reviewing its funding options and considering its market listing in order to make further investments in the business.
The group said it has brought forward the process of placing orders for its 2016 range and will complete this process during the first half of 2015. It said this move will allow for better production planning and investment in manufacturing capability.
The group also said that it is still in the process of reviewing the level of investment needed to roll out its new enterprise resource planning across the group, the rationalisation of its five warehouses in Europe, and to improve its new web platform's range and capability
It is rationalising its main UK site in Margate, Kent, which is an outdated factory location and no longer fit for purpose. The group said it is evaluating a "number of options" for its freehold site in Margate.
"In order to make these investments we will be reviewing our funding options together with consideration of the most appropriate market for our shares to be listed on," the company said in a statement.
Hornby said group sales for the third quarter showed steady year-on-year growth of 5%, with growth of 7% in the UK. It said sales in the year to sate are 6% ahead of last year.
"In the UK this has been driven by increasing sales of Hornby model railway and Scalextric products and outside the UK by our other model railway brands, reflecting the gradual but consistent improvements in the performance of our supply chain," the company said.
Horby said that sales trend continued into January, and is confident its sales and profits for the full year ending March 31, will be in line with board expectations.
"Looking forward, we are encouraged by the interest we received at the recent International Toy Fairs. Our supply chain is delivering an improved performance and we are increasingly confident that we have set the business on the right track from which we can improve the group's overall financial performance," said Chief Executive Officer Richard Ames in the statement, who said he is confident that that the group can drive growth in sales.
Hornby said it will announce its full year results for the financial year ending March in June.
The company's shares were untraded Tuesday morning at 79.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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