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Hornby back on track

Chinese supply problems have hit Hornby hard, but it seems to have, finally, overcome those problems.
November 14, 2011

For two years Hornby has been bedevilled by supply problems in China. It unwisely relied on one main supplier who ran into financial difficulties. Now, however, there are three suppliers (including the revamped original one) and the company is talking to a fourth.

135.75p

Sales in the half year to end- September could have been £2m more with perfect supplies. But there has been a big logistics improvement, as indicated by the latest European trading figures, where sales increased 50 per cent to £6.9m while underlying losses in Spain fell from £539,000 to £160,000. Hornby also reports a maiden profit in Germany, which is by far the largest model railway market in Europe - although Italian profits fell.

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