26th Sep 2018 10:24
LONDON (Alliance News) - Hornby PLC on Wednesday said its sales declined in the first five months of its current financial year due to late deliveries.
In a statement ahead of its annual general meeting, the toy train maker said sales in the five months to the end of August have been lower year-on-year as a result of an excess of stock in the supply chain and late deliveries due to orders being placed late last year.
Looking forward, the company said it plans "some very exciting" releases in both the toy and hobby spaces combined with licensing deals such as a recent one with Warner Bros.
On Monday last week, Hornby said it secured a licencing agreement with motion pictures company Warner Bros Entertainment Inc to extend its licensed product range.
The extensive product range will feature a selection of Warner Bros' and comic book publisher DC Comics Inc's most iconic franchises, including Harry Potter, DC's Super Heroes, and other fan-favourites.
The company noted that its full-year results will depend of the outcome of the sales rate over the key Christmas trading period. Hornby said it intends to "rebuild trust" and "repair" its supply chain to receive products in time.
"Much has changed at Hornby over the last 12 months," explained Chief Executive Lyndon Davies. "The business is leaner and the improvement to our planning horizons are well advanced."
Shares in Hornby were trading 0.8% lower on Wednesday at 35.60 pence each.
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