Trading Statement

Hornby PLC
29 January 2007


 
                     Hornby Plc ('Hornby' or 'the Company')


                                 Trading Update


Hornby is today issuing its regular update on trading for its second half to
date, including the important Christmas and January trade fair period.

Trading Update

Although the Company experienced lower sales in the UK market during the first
half of the financial year, improved consumer demand during the early Autumn
continued to strengthen in the pre-Christmas period and the Company enjoyed a
strong sell-through across all its UK distribution channels. Order intake and
sales for the final quarter (January-March) are expected to be above the strong
levels experienced last year. The good growth of the European subsidiaries in
Spain, Italy, France and Germany has also continued in the second half, and
together with a first-time contribution from the acquired Airfix/Humbrol
business, this performance is expected to continue in the January-March period.
The Company therefore expects the underlying trading performance of the business
for the full year to be broadly in line with market expectations.

The Company's statutory reported profits for the current year will be impacted
by the effect of the strengthening of Sterling against the Euro during the
period. At current exchange rates the translation effect of the Company's
Euro-denominated intercompany loans would generate a £0.7m charge to Group
profits (2006: £0.3m gain) in the current financial year. The charge is a
non-cash item.

Strategy Update

The Company is continuing to make very good progress in rebuilding the brands it
acquired in Continental Europe. Hornby is in the process of establishing itself
as a strong contender in all key European markets. This continuing strategy of
targeting stable, collector markets across Europe represents a significant
growth opportunity and will reduce further the Company's dependence on the UK
market.

The re-launch and future development of the acquired Airfix/Humbrol brands is
well under way. All acquired tooling assets are now under the control of Hornby
and third-party suppliers are now commencing manufacture of the acquired ranges.
New product categories to be marketed under the Airfix brand are under active
development.

Product update - London Toy Fair

The Company's new products launched at the London Toy Fair last week were
extremely well received.

2007 is the 50th anniversary of the introduction of Scalextric. The Company is
introducing a number of limited edition products and promotional activities to
commemorate this important milestone. The Scalextric Digital system has received
further enhancements designed to encourage consumers to trade up to digital
systems. Scalextric is now becoming recognised as the market leader for
digitally controlled slot-racing in most major world markets.

The Hornby Digital Control system for model railways, launched in 2006, is also
expected to gain significant momentum during 2007. Early indications of demand
and consumer reaction have been excellent and, the system has been further
developed and extended for 2007. The system will be launched onto the European
market at the forthcoming Nurnberg Toy Fair.


Chairman, Neil Johnson commented:

' Christmas sales were encouraging after a period of slow sales in the UK during
the summer of 2006 and we therefore expect to report a satisfactory trading
result for the current financial year.

' Strategically, we have continued to make very good progress in building a
profitable hobby business across Europe. The acquired businesses have all
performed better than last year as increased volumes have come on stream. There
is excellent potential to continue this process and to leverage the brand
strengths we have in the key European markets. The acquired Airfix/Humbrol
brands are expected to make a small but positive contribution in the current
financial year, with significant opportunity to re-establish this business in
all world markets over the coming years.'

                                    -ends -


Date: January 29th 2007
For further information contact:

Hornby Plc                                           cityPROFILE
Neil Johnson, Chairman                               Simon Courtenay
Frank Martin, Chief Executive                        William Attwell
01843-233500                                         020-7448-3244
Web: www.hornby.com







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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