10th Jun 2021 14:44
Hornby PLC - Margate, England-based model railway brand - Returns to profit "for the first time in many years" as the company continues to implement its turnaround strategy. Says swung to pretax profit of GBP1.5 million for year ended March 31, from a GBP3.4 million loss the year prior. Revenue increases 28% to GBP48.5 million from GBP37.8 million. Company's fixed costs for the period increased by 7.9% to GBP21.0 million from GBP19.4 million the previous year but remained a similar percentage of sales, 55% in the most recent financial year compared with 56% in year before. Notes net cash of GBP4.7 million. Declares no dividends in 2021, unchanged from the previous year.
"Our new items were well-received and the changing landscape meant that many found comfort in our products. We gained a lot of new customers, and our existing customers spent more on the hobbies they enjoy. Hornby returned to profit, following a trend of improved performance over the last few years, and the turnaround accelerated," says Chief Executive Lyndon Davies.
Says sales since March are in line with company expectations. Expects stronger demand for its hobby products and more online direct sales.
Current stock price: 59.40 pence, up 0.7% on Thursday afternoon
Year-to-date change: down 5.7%
By Scarlett Butler; [email protected]
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