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Full steam ahead for Hornby

Model train and plane maker Hornby has reported a stellar finish to the year.
May 5, 2015

The turnaround at Hornby (HRN) is gathering pace. Sales at the model train maker accelerated in the fourth quarter to the end of March, ending the year 13 per cent ahead. That implies an exceptional final quarter, according to analysts at Numis Securities, with sales up roughly 40 per cent.

IC TIP: Sell at 91p

Management said the outperformance had allowed them to invest in the business turnaround. Underlying pre-tax profit for the full year is still due to fall in line with current market expectation of about £1.5m - the first annual profit in three years. Finance director Nick Stone also announced he would leave the group to "pursue other opportunities", but that didn't seem to worry investors, who sent the shares up about 2 per cent on the day.

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