28th Nov 2019 10:54
(Alliance News) - Model train firm Hornby PLC on Thursday reported solid revenue growth as it looks to get back to profitability.
Margate-based Hornby's revenue was up 15% to GBP15.9 million for the six months to September, helping its pretax loss narrow to GBP2.5 million from GBP3.2 million.
"Revenue is growing, losses are narrowing, and we are shifting gears in our journey back to profitability and beyond," said Chief Executive Lyndon Davies.
The year to March 2018 was a "trough year", Hornby said, and revenue growth in its recent first half came after it ended discounting stock to achieve sales and improved production processes.
"We are heading into our key Christmas trading period and so it is difficult to tell what the outcome will be for the full-year results at the moment," said Davies, looking ahead.
"Our sales continue to be above where they were last year but the last few years of general retail data shows that customers are leaving gift-buying later and later each year as delivery companies and online retailers improve their services."
"I don't have a crystal ball, but what I can promise shareholders is that we will hurry towards profitability as quickly as we can. I will provide a more comprehensive analysis of the year and our [key performance indicators] in our final results announcement next year," the CEO concluded.
Hornby shares were 7.2% higher on Thursday morning in London at 34.85 pence each.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Hornby