Toy maker Hornby (HRN) had a tough year after being hit by supply chain issues and disappointing London Olympic merchandise sales - as well as battling challenging economic conditions across its major markets.
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Hornby's largest Chinese supplier transferred model railway production to a factory with no experience in the business and, unsurprisingly, 10 per cent of ordered product wasn't delivered. Add to that heavy discounting of London 2012 stock and the group's the gross profit margin fell 5.7 percentage points to 42.6 per cent, with the underlying pre-tax profit having plummeted 97 per cent to £0.15m.