Interim Results

Hornby PLC
14 November 2003


                           HORNBY BOOSTED BY NEW PRODUCTS
                             AS INTERIM RESULTS SPARKLE


    Hornby Plc ('Hornby'), the models and collectables Group, has today
    announced its interim results for the six months to 30 September 2003.
    Hornby's two main products are Hornby model railways and Scalextric slot car
    racing systems.

   •  Pre-tax profits up by 33% to £2.2 million (2002: £1.7 million)

   •  Sales up by 13% to £15.8 million (2002: £14.0 million)

   •  Diluted earnings per share up to 19.5p (2002: 14.4p)

   •  Concessions increased from 52 to over 100 in operation

   •  Successful launch of Hornby 'Live Steam' range

   •  World-wide Licence secured for launch of Scalextric MotoGP motorcycle range

   •  Cash position improved by £1.6 million to £3.1 million

   •  Interim dividend increased to 8.0p (2002: 6.0p)


    Frank Martin, Chief Executive of Hornby, said,

    ' I am delighted that Hornby has succeeded in re-discovering the magic that
    has enchanted both children and adults for years. There is now a huge level
    of interest among collectors and enthusiasts for our highly detailed
    products. This, combined with the appetite of parents for traditional
    'hands-on' toys, has continued to fuel the growth in sales across both
    Hornby and Scalextric.

    ' This 'nostalgia' driven interest was demonstrated clearly at the launch of
    our 'Live Steam' range of Hornby locomotives. We are confident that our
    continued focus on building a healthy pipeline of new products will open up
    new markets for us and continue the momentum in sales growth that we have
    enjoyed over recent years.

    ' We have achieved excellent exposure for our products in time for the
    important Christmas period. Retailers are recognising the commercial
    opportunity represented by the Hornby and Scalextric ranges. We are
    delighted that we have strengthened our distribution base in the High
    Street. This, combined with the strength of our other retail customers and
    the excellent performance delivered by the 100 concessions that we operate,
    should ensure a strong pre-Christmas trading period.'

                                       -ends-


    Date: 14 November 2003

    For further information contact:


    Hornby Plc                                     City Profile Group

    Frank Martin, Chief Executive                  Simon Courtenay

    John Stansfield, Finance Director              020-7448-3244

    01843-233500

    On 14 November: 020-7448-3244

    Web: www.hornby.com

    or: www.scalextric.com




CHAIRMAN'S REVIEW



During the first half of the year sales have continued to grow for both
Scalextric and Hornby brands. I am pleased to report that half-year sales at
£15.8m were 13% higher than for the same period last year.

Profit before tax at £2.2m was 33% higher than for the same period last year and
diluted earnings per share rose from 14.4p to 19.5p.

Dividend

It is your Board's intention to pay roughly one third of the previous year's
full dividend at the half-year. Consistent with this policy, and given the
encouraging trading performance in the first half, I am therefore pleased to
announce an interim dividend of 8p (2002 - 6p) per ordinary share, payable on 30
January 2004 for those shareholders on the register as at 9 January 2004.

Operational Review

The encouraging performance of the past six months reflects some positive
developments within the business.

Sales of Hornby products increased again during the first six months,
notwithstanding the comparatively strong sales in the previous year which had
been supported by our Harry Potter products. This achievement therefore reflects
the success of our on-going product development programme in bringing highly
detailed and profitable new products to market. Sales of Pullman range coaches
have been particularly strong. During the second half of the current financial
year we expect to see the positive effects of the recently launched 'Live Steam'
product, as well as a number of new locomotives including the 'Q1 Ugly Duckling'
and the 'Class 50' diesel.

Sales of individual Scalextric cars increased by 50% over the same period last
year. This has enabled our Scalextric business to build on the success of the
sport track system launched last year. We are committed to continuing to offer
the Scalextric enthusiast the highest standards of detail and performance across
a wide range of contemporary and classic models. A new and exciting innovation
for Scalextric was announced on 3 November, with the launch of the Scalextric
MotoGP motorcycle range scheduled for Spring 2004. We expect this two-wheeled
derivative to significantly enhance Scalextric appeal.

Overall sales growth in the UK during the first half of the year has come
primarily from major accounts and in-store concessions. A year ago we had 52
concessions in the UK but there are now over a hundred of these outlets in
operation. This impressive progress demonstrates a growing awareness amongst
progressive retailers of the commercial opportunity represented by the Hornby
and Scalextric ranges.

Export markets continue to achieve high growth as a direct consequence of our
strategy of producing Scalextric products relevant to individual markets. In
North America, Scalextric USA recorded dollar denominated growth of 45% over the
six-month period and made a positive contribution to group profit (loss 2002).
We believe that the North American market continues to represent a significant
opportunity to increase group sales and profitability in the medium term.

The Company has continued to benefit from the relative strength of Sterling
against the Hong Kong Dollar, the currency in which the majority of our products
are purchased. It is the Company's policy to maintain a prudent level of
forward-currency purchases in order to smooth the impact of short-term
fluctuations in exchange rates. Forward-purchases of Hong Kong Dollars are now
sufficient to meet the Company's purchasing requirements beyond the end of the
current financial year.

The Company's cash position, £3.1m as at 30 September 2003, has improved by
£1.6m compared to the previous year whilst working capital employed increased by
£0.7m. This clearly demonstrates the Company's continuing ability to generate
strong cash flow, even during a period of business growth which itself demands
increased expenditure on product development.


Property

As outlined in the 2002/2003 Annual Report and Accounts, our application to
redevelop our existing site at Margate was referred to the Secretary of State
for adjudication. We have so far received no further news in respect of this
application.

Summary

Your Company has made a strong start in the current financial year and the
prospects for the full year remain positive. As we enter the important period
before Christmas the benefits of wider distribution, both in the UK and export
markets, should ensure improved exposure for our products and result in
continued sales growth.

Looking a little further ahead we are confident that the exciting 'Live Steam'
product range, together with the recently announced worldwide exclusive licence
for our Scalextric MotoGP motorcycle range, will provide the platform for future
growth. We continue to develop further innovative products, some of which will
be announced at the International Toy Fairs due to be held during the early part
of 2004.



Neil Johnson

14 November 2003





CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the six months ended 30 September 2003

                                        Six months         Six months      Year ended
                                   to 30 September    to 30 September        31 March
                                              2003               2002            2003
                                        (unaudited)        (unaudited)       (audited)

                                             £'000              £'000           £'000

TURNOVER                                    15,793             14,018          34,142
Operating costs                            (13,632)           (12,395)        (28,786)
                                           _______            _______         _______

OPERATING PROFIT                             2,161              1,623           5,356
Net interest receivable                         45                 32              55
                                           _______            _______         _______

PROFIT ON ORDINARY ACTIVITIES
 BEFORE TAXATION                             2,206              1,655           5,411

Tax on profit on ordinary activities          (707)              (589)         (1,519)
                                           _______            _______         _______

PROFIT FOR THE PERIOD                        1,499              1,066           3,892
Dividends                                     (577)              (434)         (1,830)
                                           _______            _______         _______

RETAINED PROFIT FOR THE PERIOD                 922                632           2,062
                                           _______            _______         _______
     
EARNINGS PER ORDINARY SHARE
Basic                                        20.39p             14.66p          53.32p
Diluted                                      19.54p             14.43p          52.00p

Dividend per ordinary share                    8.0p               6.0p          25.0p

All the activities of the Group are continuing.



STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES

                                             £'000              £'000           £'000

Profit for the financial period              1,499              1,066           3,892
Exchange adjustments offset in reserves        (12)               (18)            (21)
                                           _______            _______         _______

TOTAL RECOGNISED GAINS FOR THE PERIOD        1,487              1,048           3,871
                                           _______            _______         _______



CONSOLIDATED BALANCE SHEET
as at 30 September 2003

                                      30 September       30 September        31 March
                                              2003               2002            2003
                                        (unaudited)        (unaudited)       (audited)

                                             £'000              £'000           £'000

FIXED ASSETS
Intangible assets                               30                 33              31
Tangible assets                              3,502              3,543           3,569
Investments - Short Term Incentive Plan        416                192             192
                                           _______            _______         _______

                                             3,948              3,768           3,792

CURRENT ASSETS
Stocks                                       8,539              7,989           6,150
Debtors                                      9,573              9,007           5,222
Cash at bank and in hand                     3,148              1,576           7,909
                                           _______            _______         _______

                                            21,260             18,572          19,281

CREDITORS: Amounts falling due
           within one year                  (8,300)            (7,804)         (7,187)
                                           _______            _______         _______

NET CURRENT ASSETS                          12,960             10,768          12,094
                                           _______            _______         _______

TOTAL ASSETS LESS
 CURRENT LIABILITIES                        16,908             14,536          15,886

CREDITORS: Amounts falling due
           after more than one year            (49)               (37)            (22)

PROVISIONS FOR LIABILITIES
 AND CHARGES                                  (538)              (673)           (486)
                                           _______            _______         _______

NET ASSETS                                  16,321             13,826          15,378
                                           _______            _______         _______

CAPITAL AND RESERVES
Share capital and reserves                   7,605              7,464           7,580
Profit and loss account                      8,716              6,362           7,798
                                           _______            _______         _______

EQUITY SHAREHOLDERS' FUNDS                  16,321             13,826          15,378
                                           _______            _______         _______




RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
30 September 30 September 31 March

                                              2003               2002            2003
                                        (unaudited)        (unaudited)       (audited)

                                             £'000              £'000           £'000

Profit for the financial period              1,499              1,066           3,892
Dividends                                     (577)              (434)         (1,830)
Exchange (loss) on investment                  (12)               (18)            (21)
Shares issued                                   33                 50             175
                                           _______            _______         _______

NET ADDITIONS TO SHAREHOLDERS' FUNDS           943                664           2,216

Opening shareholders' funds                 15,378             13,162          13,162
                                           _______            _______         _______

CLOSING SHAREHOLDERS' FUNDS                 16,321             13,826          15,378
                                           _______            _______         _______




CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2003



                                        Six months         Six months      Year ended
                                   to 30 September    to 30 September        31 March
                                              2003               2002            2003
                                        (unaudited)        (unaudited)       (audited)

                                             £'000              £'000           £'000

Net cash (outflow)/inflow from
 operating activities                       (1,772)            (2,262)          5,814

Returns on investments and
 servicing of finance                           45                 32              55
Taxation                                      (914)              (878)         (1,662)
Capital expenditure and financial investment
 - purchase of fixed assets                   (546)              (506)         (1,219)
 - sale of fixed assets                         13                 11              60
 - purchase of own shares                     (224)              (192)           (192)
Payment of deferred consideration                -                (49)            (49)

Equity dividends paid                       (1,383)            (1,086)         (1,524)
                                           _______            _______         _______

Net cash (outflow)/inflow
 before financing                           (4,781)            (4,930)          1,283

Financing
Issue of ordinary shares                        33                 50             175
Capital element of finance lease payments       (7)               (13)            (17)
                                           _______            _______         _______

(Decrease)/increase in cash in the period   (4,755)            (4,893)          1,441
                                           _______            _______         _______



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                             £'000              £'000           £'000

(Decrease)/increase in cash in the period   (4,755)            (4,893)          1,441
Cash outflow from decrease in
 lease financing                                 7                 13              17
                                           _______            _______         _______

Change in net funds
 resulting from cash flows                  (4,748)            (4,880)          1,458
New finance leases                             (38)               (28)            (28)
Exchange movements                              (6)                (8)             (9)
                                           _______            _______         _______

Movement in net funds in the period         (4,792)            (4,916)          1,421
Net funds at 1 April 2003                    7,867              6,446           6,446
                                           _______            _______         _______

Net funds at 30 September 2003               3,075              1,530           7,867
                                           _______            _______         _______




NOTES TO THE CASH FLOW STATEMENT

Net cash flow from operating activities

                                        Six months         Six months      Year ended
                                   to 30 September    to 30 September        31 March
                                              2003               2002            2003

                                        (unaudited)        (unaudited)       (audited)

                                             £'000              £'000           £'000

Operating profit                             2,161              1,623           5,356
Exchange adjustments offset in reserves         (5)                (7)             (7)
Depreciation charges                           679                650           1,266
Amortisation of goodwill                         1                  3               3
Profit on sale of tangible fixed assets         (1)                (1)            (18)
(Increase) in stocks                        (2,389)            (2,454)           (615)
(Increase) in debtors                       (4,351)            (4,132)           (374)
Increase in creditors                        2,092              2,011             348
Increase/(decrease) in sales 
 returns provision                              41                 45            (145)
                                           _______            _______         _______

Net cash (outflow)/inflow from
 operating activities                       (1,772)            (2,262)          5,814
                                           _______            _______         _______

GEOGRAPHICAL SEGMENT INFORMATION


                                        Six months         Six months      Year ended
                                   to 30 September    to 30 September        31 March
                                              2003               2002            2003

                                        (unaudited)        (unaudited)       (audited)

BY ORIGIN                                    £'000              £'000           £'000

TURNOVER

United Kingdom                              14,415             12,997          30,680
United States of America                     1,378              1,021           3,462
                                           _______            _______         _______

Group                                       15,793             14,018          34,142
                                           _______            _______         _______


                                             £'000              £'000           £'000

PROFIT BEFORE TAX

United Kingdom                               2,160              1,755           5,347
United States of America                        46               (100)             64
                                           _______            _______         _______

Group                                        2,206              1,655           5,411
                                           _______            _______         _______

                                             £'000              £'000           £'000

NET ASSETS

United Kingdom                              16,067             13,710          15,143
United States of America                       254                116             235
                                           _______            _______         _______

Group                                       16,321             13,826          15,378
                                           _______            _______         _______


BY DESTINATION                               £'000              £'000           £'000

TURNOVER

United Kingdom                              11,517             10,608          26,473
Rest of the world                            4,276              3,410           7,669
                                           _______            _______         _______

Group                                       15,793             14,018          34,142
                                           _______            _______         _______



NOTES:

1. Basis of preparation

    The interim financial information has been prepared on the basis of
    accounting policies set out in the Report & Accounts for the year ended
    31 March 2003. The taxation charge for the six months ended 30 September
    2003 has been calculated on the basis of the estimated tax rate for the
    twelve months ending 31 March 2004.

2. Non statutory accounts

    These statements do not constitute statutory financial statements within
    the meaning of Section 240 of the Companies Act 1985. The comparative
    figures for the year ended 31 March 2003 are an abridged statement of the
    full financial statements for that period which have been delivered to the
    Registrar of Companies and on which the auditors made an unqualified report.
    No financial statements will be filed for the six months ended 30 September
    2003.

3. Earnings per share

    The calculation of earnings per ordinary share is based on the profits
    after taxation for the period of £1,499,000 (six months ended 30 September
    2002 - £1,066,000) and the weighted average number of ordinary shares in
    issue during the period of 7,352,374 (six months ended 30 September 2002 -
    7,272,621).

    The calculation of diluted earnings per ordinary share is based on the
    weighted average number of ordinary shares in issue as adjusted to assume
    conversion of all dilutive potential ordinary shares, 7,671,637 (six months
    ended 30 September 2002 - 7,385,577).

4. Short Term Incentive Plan

    31,901 ordinary shares to the value of £224,000 were acquired in June 2003
    by the Employee Benefit Trust in accordance with the incentive plan, details
    of which were included in the 2003 Annual Report and Accounts.

    The Trust waives its right to dividends.

5. Interim Statement

    Copies of this statement will be sent to all shareholders and are available
    from the Company's registered office.







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