10th Nov 2015 09:11
LONDON (Alliance News) - Hobby products retailer Hornby PLC on Tuesday said it expects its full year results will be weaker than current market expectations due to an acceleration of its restructuring programme in Europe, though it said its UK restructuring is on track.
The company, known for its miniature train sets, said the turnaround of its UK business has progressed well, with revenue for the 10 weeks to November 8 increasing 9.0% year-on-year as the benefits of the restructuring feed through. It said the UK business looks well positioned for the Christmas trading period.
Given the positive impact had on the UK business by the turnaround programme, Hornby said it will accelerate the actions it is taking in Europe, which will involve the roll-out of a new IT system and the transfer of logistics and product supply chain management to a new group structure.
Due to the acceleration of the actions, Hornby said its sales revenue will be disrupted more than initially anticipated and, as a result, its full-year results will miss market expectations.
It expects the UK to be broadly in line for the full year, but its European sales will be materially lower due the disruption that the restructuring will cause. It now expects its underlying pretax loss for the year to the end of March 2016 will be around GBP2.0 million, compared to the GBP1.6 million profit it made a year earlier.
Shares in Hornby were down 5.9% to 91.25 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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