Trading Statement

Hornby PLC
31 January 2005

                                 Trading Update


      HORNBY REPORTS STRONG PRE-CHRISTMAS TRADING AND ENCOURAGING OUTLOOK


In line with recent practice, Hornby Plc ('Hornby' or 'the Company') is today
issuing an update on trading, including detail on sales performance in the
pre-Christmas period.

Despite generally difficult trading conditions in the wider UK retail sector,
Hornby's ranges, in particular model railways have performed well. The robust
characteristics of the collectable and hobby market have resulted in continued,
strong consumer demand. The new product ranges launched in early 2004 have
proved to be very popular. The Live Steam range of model trains and the range of
historic Scalextric racing cars have strengthened the Company's position in the
hobbyist and enthusiast market. There is evidence that these new product lines
have helped to attract a number of customers new to the hobby.

Pre-Christmas Trading

The Company enjoyed a buoyant performance prior to Christmas. Sales, both of
Hornby railways and Scalextric slot car racing products, in the three-month
period to December 2004 were higher than the previous year. One of the main
drivers of this growth was the Company's network of in-store concessions. Hornby
now operates 120 concessions, which are proving popular with enthusiasts and
collectors, who often prove to be loyal, repeat customers. The Company has also
made good progress on improving its listings with the major national retailers.
Many are recognising the attractions of product associated with the hobby and
collectable market, and Hornby has proved that the popularity of its product
ranges is a long-term trend.

Given the continued calendar of product launches and the excellent performance
of its new Scalextric Digital products, the Company also anticipates a good
final quarter performance.

Overseas Subsidiaries

Hornby's Spanish subsidiary Electrotren, acquired in March 2004, has also
continued to perform well. It has launched more locally oriented product into
its core markets and it is making encouraging progress in improving its
distribution channels.

As the Company predicted at the time of the acquisition, Hornby is also
utilising the Company's existing network to drive sales growth in slot-car
racing systems into the Spanish market. It is making good progress in winning
market share. The 'Superslot' racing brand has benefited significantly from the
focus on improving the range and quality of its distribution channels.

During 2003, the Company secured the worldwide exclusive licence to produce slot
cars associated with the Renault Formula 1 team. Given the popularity of Spanish
driver Fernando Alonso, sales in Spain have been excellent. The impact of the
MotoGP motorbikes has also been very pleasing and the Company remains confident
that it can continue to deliver growth in this market.

Following the acquisition of certain assets of Lima S.p.A (in liquidation) in
December 2004, the process of moving production from Italy to China is
progressing according to plan. The first shipments of moulds were made in
January, with deliveries of finished goods from China now expected in the final
quarter of 2005.

Feedback from customers around the world has been positive. There is still much
goodwill associated with the Lima brands and Hornby has a detailed marketing
plan in place to help support the re-launch. The Company remains confident that
the acquisition of the Lima brands and assets will enable Hornby to establish a
significant presence in major world markets for Model Railways.

Toy Fair

The Company's new products launched at the London Toy Fair last week were well
received. Looking forward, this event is always an important barometer of
confidence in the product ranges. This is the major industry retail exhibition
and the first-class feedback that the Company has received from supportive
retailers gives the Board renewed confidence that the renaissance in popularity
of the Hornby product stable continues to be strong. Yet the Board remains aware
that continued innovation and maintenance of a strong pipeline of new products
is an important aspect of its business which underpins the Company's future
strategy for growth.

The Hornby range of model railways has been strengthened with the launch of the
A3 Class 'Flying Scotsman', which is being produced in Live Steam. In addition,
reaction to the introduction of newly tooled versions of the 'Class 08', 'Class
31', 'Class 60' Modern Image locomotives, together with the 'Grange', 'A1' and
'A3' steam locomotives was extremely positive. The Company has also given
attention to its younger customers. The 'Thomas the Tank Engine' range has been
revitalised and the feedback from retailers gives the Company confidence that
this will prove to be a popular product range.

In Scalextric, the Company has been boosted by the impact of a number of
important international licenses which will help to generate further sales
growth. Hornby has secured a licence with Ferrari and Mattel to produce a number
of slot car models based on current and historic Ferraris. The Company has also
agreed a licence with Warner Bros. to launch a range of product associated with
the 'Batman Begins' movie, which is expected to be launched in mid 2005.
Scalextric Sport World, the interactive competition platform is also proving to
be popular. The Company expects to be shipping this product in the second
quarter. The continued focus on high quality product development linked in the
case of Scalextric to high profile licenses is a proven formula which can be
expected to continue to drive sales growth.

In light of the above, Hornby expects to report pre-tax profits in line with the
Company's broker's estimate for the financial year ending 31 March 2005.

Chairman, Neil Johnson commented:

' I am delighted to report on our recent trading, which continues to reflect the
successful product development and marketing strategies being pursued in all
sectors of the business. Consumer demand for Hornby and Scalextric remained
strong prior to Christmas, although peaking very late.

' Our strategy continues to be to develop the Hornby and Scalextric brands as
market leaders that appeal to the broadest possible consumer base. Coupled with
this, our international acquisitions provide an excellent platform to replicate
our UK success story in other major markets. We therefore remain confident of
the future growth potential of the business'

                                    -ends -
Date: 31 January 2005
For further information contact:

Hornby Plc                                          City Profile
Neil Johnson, Chairman                              Simon Courtenay
Frank Martin, Chief Executive                       James Cooper
01843-233500                                        020-7448-3244
Web: www.hornby.com


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