Final Results

Hornby PLC
13 June 2001

                      HORNBY DELIVERS STRONG PERFORMANCE

                             AFTER YEAR OF CHANGE



Hornby Plc, ('Hornby') the models and collectables Group, has today announced
its preliminary results for the year ended 31 March 2001. Hornby's two main
products are Hornby model railways and Scalextric slot car racing systems.

Highlights



  * Pre-tax profits (before exceptionals) up 63% to £2.3 million (2000: £1.4
    million)

  * Turnover up 15% to £24.6 million (2000: £21.5 million)

  * Management team strengthened

  * Neil Johnson appointed Non-Executive Chairman

  * Frank Martin appointed Chief Executive

  * Strong sales growth across the Hornby Railways and Scalextric product
    ranges

  * Outsourcing of production to China completed

  * Final dividend of 10p - Total dividend up 71 % to 12p (2000: 7p)

Frank Martin, Chief Executive of Hornby, said,

' We have worked hard this year to improve the entire performance of the
business. The growth in sales of both our Hornby railway and Scalextric slot
car racing systems has been very encouraging. We have concentrated on
developing the quality and detailing of the product, which has been well
received by our customers. This has contributed directly to the success of the
Company. The product range is rapidly growing in popularity among both adult
collectors and enthusiasts.

' The future for Hornby remains buoyant. We now need to build on our current
success. We are focusing on maximising our revenue streams through product
innovation and the development of international sales. We are excited for the
future of the two brands and the new products that we intend to launch that
are in advanced stages of development.'

                                    -ends-

Date: 13 June 2001

For further information contact:
Hornby Plc                                     City Profile Group

Frank Martin, Chief Executive                  Simon Courtenay

John Stansfield, Finance Director              Ed Senior

01843-233500                                   020-7726-8588

On 13 June: 020-7726-8588                      e-mail: [e-mail]

Web: www.hornby.com or: www.scalextric.com

CHAIRMAN'S STATEMENT



In this, my first Chairman's statement, I am pleased to be able to report
significantly improved performance for the year ended 31 March 2001. Turnover
increased by 15% and profit, before exceptional items, improved 63% to £2.3
million. Even after accounting for these exceptional costs, profit before tax
was up 24% on last year at £1.5 million.

I would like to highlight a number of important performance indicators. There
has been strong sales growth across the product ranges, and in both Export and
UK independent markets for Scalextric sets and Hornby locomotives. The
excellent performance of Scalextric USA, Inc. (our wholly-owned USA
subsidiary) gives cause for real optimism in a market with enormous potential.
New product introductions have attracted acclaim in both Hornby and Scalextric
ranges and the completion of our strategy to transfer all production processes
to China continues to improve operational performance, quality and modelling
detail. This success clearly indicates growing popularity in the crucial
market opportunity represented by adult collectors and enthusiasts for both
product streams. These product innovations will continue in the coming year.

Board Restructuring

I should like to thank Peter Newey, the former Executive Chairman, for his
work in laying the foundations for last year's excellent performance. Peter
left the Company in December to pursue his many external interests. We wish
him well.

Following Peter's departure the Board took the view that some fundamental
changes in management processes were desirable. I was appointed non-executive
Chairman and, shortly thereafter, at the beginning of 2001, we were successful
in recruiting Frank Martin as our Chief Executive. Frank has an outstanding
track record in markets closely related to our own and we are indeed fortunate
to have him lead our executive team.

Your Board also took the important decision to concentrate on two areas of
activity. Firstly to reduce the overheads within the business and secondly,
following the conclusion of the non-productive sale/MBO process, to enable the
executive directors to focus their energy and skills on running the business.
This has led to a number of further changes within the Company.

Your Board has been restructured to more appropriately reflect the size and
complexity of our business. The Plc Board now comprises two non-executives
together with the Chief Executive and Finance Director. A management board
meets regularly in Margate to control the day-to-day operation of the
business, and comprises the senior executive directors.

I would like to take this opportunity to thank all of those who recently stood
down from the main Board for their contribution to the business, and
particularly to David Robins our legal adviser for many years and a
non-executive director since 1999 who, I am pleased to report, will continue
his relationship with the Company in the former capacity.

Property Review

Restructuring the business in this way has also enabled us to reduce costs
elsewhere. Our London Headquarters office and showroom have been closed and
the lease is to be disposed of. Similarly, having successfully completed the
relocation of our production to China, our Hong Kong office was closed in
April 2001. Continuing our property review it is hoped that the existing
Margate site will be sold for redevelopment allowing the Company to relocate
to more suitable premises. The terms of a sale would be subject to various
planning applications being successful. Further details will be sent to
shareholders in due course.

Product Innovation

We continue to embrace emerging technology in our product plans. A Hornby CD
Rom based programme has been successfully launched and a PC based interactive
system for Scalextric is at an advanced stage of development. I believe that
there is great potential in these innovations linking, as they do, computer
skills with more traditional three-dimensional hobbies and entertainment.

Share Buy Back

In our interim report, published in November last year, the Board indicated
its intention to return funds to shareholders in 2001. This was achieved in
part during March when, using the headroom for share purchase available to the
Company, we purchased 1.1 million shares in the market (13.2% of the issued
stock) at a price of 145p. You will note that the Board is seeking the
flexibility to re-purchase up to a similar percentage in the coming year
should circumstances be favourable.

Dividend

Similarly your Board believes that the current trading position and prospects
for the Company enables us to announce a final dividend of 10p per share. This
brings the total dividend for the year to 12p, an increase of 71% over the
previous year (2000 - 7p).

The final dividend will be payable on 17 August 2001 to those shareholders on
the register as at 27 July 2001.

Outlook

The past twelve months have seen major changes at Hornby. Perhaps most
notable, and a key contributor to success, has been focus and stability linked
to the personal endeavour of our loyal and dedicated staff. Your Board
believes that there is further opportunity to develop our business
organically, through enhanced product innovations, the use of new
technologies, and through potential partnership with or acquisition of similar
businesses where Hornby's critical skill base could improve operations.

Our task now is to build and consolidate our success. We can look forward to
an exciting future with two really great brands.

Neil Johnson

13 June 2001





UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2001
                                                         2001             2000
                                                        £'000            £'000

TURNOVER                                               24,604           21,477

Cost of sales                                        (14,792)         (13,870)
                                                  ___________      ___________

GROSS PROFIT                                            9,812            7,607

Net operating expenses - exceptional                    (797)            (195)
- other                                               (7,601)          (6,212)
                                                  ___________      ___________

                                                      (8,398)          (6,407)
                                                  ___________      ___________

OPERATING PROFIT                                        1,414            1,200
Net interest receivable                                    81                7
                                                  ___________      ___________

PROFIT ON ORDINARY ACTIVITIES                           1,495            1,207

BEFORE TAXATION
Tax on profit on ordinary activities                    (520)            (398)
                                                  ___________      ___________

PROFIT ON ORDINARY ACTIVITIES                             975              809

AFTER TAXATION
Dividends                                               (893)            (585)
                                                  ___________      ___________
RETAINED PROFIT                                            82              224

FOR THE FINANCIAL YEAR
                                                  ___________      ___________
ATTRIBUTED TO:
The Company                                              (46)              (2)
Subsidiary undertakings                                   128              226
                                                  ___________      ___________
                                                           82              224
                                                  ___________      ___________

EARNINGS PER ORDINARY SHARE
Basic                                                  11.74p            9.68p
Diluted                                                11.74p            9.68p
Basic before exceptional items                         18.46p           11.31p


All of the activities of the Group are continuing.



STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES

FOR THE YEAR ENDED 31 MARCH 2001
                                                          2001             2000
                                                         £'000            £'000

Profit for the financial year                              975              809
Exchange adjustments offset in reserves                     20                1
                                                   ___________      ___________

Total recognised gains for the year                        995              810
                                                   ___________      ___________

UNAUDITED CONSOLIDATED BALANCE SHEET

AT 31 MARCH 2001
                                                          2001             2000
                                                         £'000            £'000
FIXED ASSETS
Intangible assets                                           38               40
Tangible assets                                          3,701            4,478
                                                     ___________     ___________

                                                         3,739            4,518
                                                     ___________     ___________

CURRENT ASSETS
Stocks                                                   4,240            6,083
Debtors                                                  4,915            4,944
Cash at bank and in hand                                 5,212            3,565
                                                     ___________     ___________

                                                        14,367           14,592

CREDITORS: Amounts falling due within one year         (5,245)          (4,660)
                                                    ___________      ___________

NET CURRENT ASSETS                                       9,122            9,932
                                                    ___________      ___________

TOTAL ASSETS LESS CURRENT LIABILITIES                   12,861           14,450

CREDITORS: Amounts falling due after more than one        (96)            (148)
year
PROVISIONS FOR LIABILITIES AND CHARGES                   (762)            (806)
                                                    ___________      ___________

NET ASSETS                                              12,003           13,496
                                                    ___________      ___________

CAPITAL AND RESERVES
Called up share capital                                    363              418
Capital redemption reserve                                  55                -
Share premium account                                    4,525            4,525
Revaluation reserve                                        808              825


Other reserves                                           1,688            1,688
Profit and loss account                                  4,564            6,040
                                                    ___________     ___________

EQUITY SHAREHOLDERS' FUNDS                              12,003           13,496
                                                    ___________     ___________



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2001
                                                    2001              2000
                                                £'000  £'000       £'000  £'000

Net cash inflow from operating activities              5,162              1,694
Returns on investments and servicing of                   81                  7
finance
Taxation                                               (499)              (171)

Capital expenditure and
financial investment - purchase of fixed      (1,034)              (964)
assets
- sale of fixed assets                            160                 40
                                            ___________        ___________
                                                       (874)              (924)

Acquisitions                                        -              (103)
Overdraft held upon acquisition                     -               (66)
Payment of deferred consideration                (26)                  -
                                            ___________        ___________


                                                        (26)              (169)

Equity dividends paid                                  (585)              (585)
                                                 ___________        ___________

Net cash outflow before financing                      3,259              (148)

Financing
Capital element of finance lease payments               (23)               (59)
Purchase of own shares                               (1,595)                  -
                                                 ___________        ___________

Increase/(decrease) in cash in the year                1,641              (207)
                                                 ___________        ___________


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                            2001           2000
                                                           £'000          £'000

Increase/(decrease) in cash in the year                    1,641          (207)
Cash outflow from decrease in lease financing                 23             59
                                                     ___________    ___________
 Change in net funds resulting from cash flows             1,664          (148)
 New finance leases                                            -           (59)
 New finance leases upon acquisition                           -           (13)
 Exchange movements                                            6              -
                                                     ___________    ___________
 Movement in net funds in the year                         1,670          (220)
 Net funds at 1 April 2000                                 3,478          3,698
                                                     ___________    ___________
 Net funds at 31 March 2001                                5,148          3,478
                                                     ___________    ___________

NOTES TO THE CASH FLOW STATEMENT

NET CASH FLOW FROM OPERATING ACTIVITIES
                                                            2001           2000
                                                           £'000          £'000

 Operating profit                                          1,414          1,200
 Exchange adjustments offset in reserves                      12              1
 Depreciation charges                                      1,734          1,363
 Amortisation of goodwill                                      3              2
 (Profit) on sale of tangible fixed assets                  (87)              -
 Decrease in stocks                                        1,843            125
 Decrease/ (increase) in debtors                              29          (655)
 Increase/(decrease) in creditors                            133          (353)
 Increase in sales returns provision                          81             11
                                                      ___________    ___________

 Net cash inflow from operating activities                 5,162          1,694
                                                      ___________    ___________


SEGMENTAL INFORMATION

The directors consider there to be one class of business, being the
development, manufacture and distribution of model products.




BY ORIGIN                    Turnover      Profit before Tax    Net assets
                             2001    2000      2001      2000    2001    2000
                            £'000   £'000     £'000     £'000   £'000   £'000

United Kingdom             22,224  20,747     1,352     1,097  11,714  13,324
United States of America    2,380     730       143       110     289     172
                            _____   _____     _____     _____   _____   _____
Group                      24,604  21,477     1,495     1,207  12,003  13,496
                            _____   _____     _____     _____   _____   _____





TURNOVER BY DESTINATION
                                                      2001                 2000
                                                     £'000                £'000

United Kingdom                                      19,159               17,495
Rest of World                                        5,445                3,982

Group                                               24,604               21,477


NOTES

1. The basic earnings per share for the year ended 31 March 2001 is based on
the profit after taxation of £975,000 (year ended 31 March 2000 - £809,000)
and the weighted average number of ordinary shares in issue during the year of
8,306,087 (year ended 31 March 2000 - 8,357,320). The diluted earnings per
share is the same as the basic earnings per share as the performance criteria
required to exercise options have not been achieved in the year. The
calculation of earnings per share before exceptional items is based on the
profit before exceptional items (net of taxation) of £1,533,000 (2000 - £
945,000). It is included as it provides a better understanding of the
underlying performance of the Group.

Therefore an adjusted earnings per share is presented, as follows:

                                              2001                 2000
                                                  Earnings             Earnings
                                       Earnings  per share Earnings   per share
                                          £'000      Pence    £'000       pence
 Earnings per share                         975      11.74      809        9.68
 Exceptional items:
 Redundancy and compensation for loss       797       9.60      195        2.33
 of office
 Taxation arising on exceptional items    (239)     (2.88)     (59)      (0.70)
 at 30% (2000 - 30%)
                                          _____      _____    _____       _____
Earnings excluding exceptional items      1,533      18.46      945       11.31
and adjusted earnings per share
                                          _____      _____    _____       _____
 Diluted                                             11.74                 9.68
                                                     _____                _____

2. The proposed dividend will be paid on 17 August 2001 to members on the
register as at 27 July 2001. The ex-dividend date will be 25 July 2001.

3. The profit and loss account, statement of group total recognised gains and
losses and balance sheet set out above for the year ended 31 March 2001 are
not statutory accounts and are abridged and unaudited. Full audited accounts
will be filed with the Registrar of Companies in due course. Full audited
accounts for the year ended 31 March 2000 containing an unqualified audit
report have been filed with the Registrar of Companies.

4. The preliminary financial information has been prepared on the basis of
accounting policies set out in the Report & Accounts for the year ended 31
March 2000.

5. This preliminary announcement was approved by the Board on 12 June 2001.

6. Copies of this preliminary announcement are available from J W Stansfield,
Finance Director, Hornby Plc, Westwood, Margate, Kent, CT9 4JX.