22nd Jun 2023 10:16
(Alliance News) - Hornby PLC on Thursday said poor sales performance prevented targeted annual revenue growth.
Hornby shares fell by 9.3% at 20.40 pence each in London on Thursday morning.
The Margate-headquartered toy manufacturing company said in the year ended March 31, it swung to a pretax loss of GBP5.9 million from a pretax profit of GBP583,000 a year prior.
This relates to higher selling and marketing costs of GB11.4 million, which grew by 30% from the year before. Meanwhile, distribution costs increased 17% to GBP8.2 million in financial 2022.
Revenue grew slightly by 2.6% to GBP55.1 million from GBP53.7 million, but was around 10% behind management expectations, Hornby said. This was the result of "disappointing sales" in the October-December period.
The company declared no dividend for financial 2023, unchanged from a year prior.
Looking ahead, Hornby said with its current cost base, it expects to achieve a higher level of revenue, and is targetting high, single-digit or low double-digit revenue growth in the year ahead.
By Sabrina Penty, Alliance News reporter
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