Interim Results

Hornby PLC
16 November 2001

               HORNBY MAKES SOLID PROGRESS AT INTERIM STAGE AS

                        HARRY POTTER HOGWARTS EXPRESS

                           SET TO BOOST SECOND HALF



 Hornby Plc, ('Hornby') the models and collectables Group, has today announced
its interim results for the six months to 30 September 2001. Hornby's two main
products are Hornby model railways and Scalextric slot car racing systems.



Highlights


  * Pre-tax profit up 52% to £794,000 (2000: £524,000)

  * Turnover up 14% to £10.6 million (2000: £9.3 million)

  * Earnings per share up to 7.19p (2000: 4.03p)

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

  * Harry Potter Hogwarts Express launched

  * Interim dividend of 2.0p maintained (2000: 2.0p)



Frank Martin, Chief Executive of Hornby, said,

' These are really encouraging results. The improved detailing and quality of
our products is one of the keys to the improved performance. Coupled with this
there is a significant renaissance in the popularity of Hornby model railways
and Scalextric slot car racing. This is leading to excellent levels of sales.
The recent trial joint venture with Megabowl, the ten-pin bowling business for
a 'Pay to Race' Scalextric set is progressing well.

' Our new products are being well received by customers. We recently launched
a Harry Potter Hogwarts Express Train Set and Collectors Locomotive to
co-incide with the release of the film and in time for Christmas. Feedback
from customers is extremely positive. The product is literally flying off the
shelves.

' The Christmas period is vital for Hornby. So far, there is every indication
we have positioned ourselves to benefit from the surge in demand for our
products. Given the present uncertainty in the economy, we remain quietly
confident that we will continue to report good progress for the full year.'

                                    -ends-

Date: 16 November 2001

For further information contact:

Hornby Plc                               City Profile Group
Frank Martin, Chief Executive            Simon Courtenay
John Stansfield, Finance Director        Ed Senior
01843-233500                             020-7448-3244 or 07958-754273
On 16 November: 020-7448-3244            e-mail:
                                         [e-mail]
Web: www.hornby.com or:
www.scalextric.com





CHAIRMAN'S REVIEW





During the past six months the Company has continued to build on the strong
performance recorded in the full-year 2000-2001.

I am pleased to report that, at the half-year, sales at £10.6m were 14% ahead
of last year's excellent performance while profit at £794,000 was 52% higher
than for the same period last year. This is indeed encouraging and
demonstrates while revenues are rising, overheads remain under control.

Domestic and International sales have increased. In the UK, growth continues
through all distribution channels with particularly strong performance in the
independent model and hobby-shop sector. In export markets European sales
continue to grow and, given the particular difficulties in North America,
Scalextric USA has done well to maintain sales. We still see significant
potential in North America, however, given the devastating impact of recent
events on the economic outlook, we will carefully match our costs and
ambitions to realistic market potential in the near-term.

Generally we remain optimistic for a strong performance in the second-half as
customers maintain their loyalty to traditional values and seasonal gifts in
an uncertain world.

Property

In the second half we hope to be in a position to recommend a proposal for
site rationalisation at Margate. At the time of writing we are negotiating
contracts which, subject to shareholder and planning consents, would result in
an excellent and permanent home for Hornby. Subject to these consents, it is
the Board's intention that the new Headquarters and distribution base should
include a Hornby Heritage Centre which would be open to the public and
underpin the strength of both brands.

Product

Development of new and innovative products continues across both brands, with
timely introductions in the second half, when, for example, we expect sales of
the Harry Potter Hogwarts Express to develop strongly. We have recently run a
successful pilot project with a six-lane Scalextric layout featured as a 'Pay
to Race' attraction in conjunction with Megabowl, the ten-pin bowling
operator. The trial continues, but similar commercial arrangements are likely
to follow.

Dividends

The Company has performed well during the first half of the trading year.
Nevertheless, in the uncertain world economic climate, your Board is
maintaining the interim dividend at 2.0p per ordinary share payable on 25
January 2002 for those shareholders on the register as at 4 January 2002.

The full dividend for 2000-2001 was 12p and your Board believes that the
potential exists, subject to trading conditions, at least to maintain this
level. If this proves possible then, in the hopefully calmer economic waters
of next year, it would be our intention to rebalance the interim dividend for
2002-2003.

Summary

Hornby has had an excellent first-half in a generally difficult trading
environment and we remain optimistic in respect of the outcome for the full
year.





Neil Johnson

Chairman

16 November 2001





CHIEF EXECUTIVE'S REPORT



Operating and Financial Review

These encouraging results continue the trend established in the full year to
31 March which saw a 15% increase in sales over the previous year.

Sales were up in all UK channels of distribution, with the independent model
and hobby shop sector showing the strongest growth. Direct sales via our
retail concessions were also substantially higher. This is despite the
receivership early this year of the Beatties of London Limited chain of 26
stores all of which were operated as Hornby concessions. As at 30 September
2001 the number of Hornby concessions operating throughout the UK had been
rebuilt to 28, with plans to increase this number to 40 over the coming
months.

International sales have also increased substantially, with particularly
strong growth in Western Europe. Sales at Scalextric USA, whilst ahead of last
year, suffered from the effects of the slowing US economy. This, followed by
the tragic events of September 11th has led us to lower our short-term
expectations in America and action has been taken to realign our US cost base
accordingly.

Sales have increased of both the Hornby and Scalextric product ranges.
Improvements in accuracy, quality and detail continue to enable us to grow our
market share both in model railways and slot car racing systems.

Gross margins were slightly improved as a result of increased sales via
independent retailers and concessions. This improvement is despite the
relative weakness of Sterling against the Hong Kong dollar, the currency in
which the majority of our products are purchased.

UK overheads increased by 12% as a result partly of variable costs increasing
in line with sales, increased concessions costs and advertising expenditure.

The Company's working capital employed has significantly improved although the
cash position was lower than prior year at £136,000 compared to £854,000. This
reflects in part the costs of the share buy-back (£1.6m) which took place in
March 2001 and the increased final dividend payment (£308,000) in respect of
the financial year ended 31 March 2001.

Earnings per share rose from 4.03p to 7.19p as a result of improved profits
and a reduction in the average number of shares in issue in the period from
8,357,320 shares to 7,257,320 shares. This reduction in shares in issue arose
due to the share buy-back in March 2001.

Current indications are that the Company's products are continuing to sell
strongly in the pre-Christmas trading period. Based upon this and a
substantial new product introduction programme for 2002 we believe that the
future for Hornby continues to be positive.



Frank Martin

Chief Executive

16 November 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001
                                              Six months  Six months Year ended
                                                  37,164      37,164     36,981
                                                   2,001       2,000      2,001
                                             (unaudited) (unaudited)  (audited)
                                                   £'000       £'000      £'000
TURNOVER                                          10,629       9,298     24,604
Operating costs          - exceptional                 -        (73)      (797)
                         - other                 (9,865)     (8,712)   (22,393)
                                              __________  __________ __________
OPERATING PROFIT                                     764         513      1,414
Net interest receivable                               30          11         81
                                              __________  __________ __________
PROFIT ON ORDINARY ACTIVITIES BEFORE                 794         524      1,495
TAXATION
Tax on profit on ordinary activities               (272)       (187)      (520)
                                              __________  __________ __________
PROFIT FOR THE PERIOD                                522         337        975
Dividends                                          (145)       (167)      (893)
                                              __________  __________ __________
RETAINED PROFIT FOR THE PERIOD                       377         170         82
                                              __________  __________ __________
EARNINGS PER ORDINARY SHARE
Basic                                              7.19p       4.03p     11.74p
Diluted                                            7.19p       4.03p     11.74p
Basic before exceptional items                     7.19p       4.64p     18.46p
Dividend per ordinary share                         2.0p        2.0p      10.0p
All the activities of the Group are
continuing.

STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES
                                                   £'000       £'000      £'000
Profit for the financial period                      522         337        975
Exchange adjustments offset in reserves             (10)          13         20
                                              __________  __________ __________
TOTAL RECOGNISED GAINS FOR THE PERIOD                512         350        995
                                              __________  __________ __________


CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2001
                                                  30-Sep      30-Sep     31-Mar
                                                    2001        2000       2001
                                             (unaudited) (unaudited)  (audited)
                                                   £'000       £'000      £'000
FIXED ASSETS
Intangible assets                                     36          40         38
Tangible assets                                    3,679       4,189      3,701
                                              __________  __________ __________
                                                   3,715       4,229      3,739
CURRENT ASSETS
Stocks                                             6,873       6,580      4,240
Debtors                                            7,681       7,948      4,915
Cash at bank and in hand                             136         854      5,212
                                              __________  __________ __________
                                                  14,690      15,382     14,367
CREDITORS: Amounts falling due within one        (5,253)     (4,950)    (5,245)
year
                                              __________  __________ __________
NET CURRENT ASSETS                                 9,437      10,432      9,122
                                              __________  __________ __________
TOTAL ASSETS LESS CURRENT LIABILITIES             13,152      14,661     12,861
CREDITORS: Amounts falling due after more           (65)       (153)       (96)
than one year
PROVISIONS FOR LIABILITIES AND CHARGES             (717)       (829)      (762)
NET ASSETS                                        12,370      13,679     12,003
CAPITAL AND RESERVES
Share capital and reserves                         7,431       7,448      7,439
Profit and loss account                            4,939       6,231      4,564
EQUITY SHAREHOLDERS' FUNDS                        12,370      13,679     12,003

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
                                                   £'000       £'000      £'000
Profit for the financial period                      522         337        975
Dividends                                          (145)       (167)      (893)
Exchange (loss)/gain on investment                  (10)          13         20
Shares repurchased                                     -           -    (1,595)
                                              __________  __________ __________
NET ADDITIONS TO SHAREHOLDERS' FUNDS                 367         183    (1,493)
Opening shareholders' funds                       12,003      13,496     13,496
                                              __________  __________ __________
CLOSING SHAREHOLDERS' FUNDS                       12,370      13,679     12,003
                                              __________  __________ __________





CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001
                                              Six months  Six months Year ended
                                                  30-Sep      30-Sep     31-Mar
                                                    2001        2000       2001
                                             (unaudited) (unaudited)  (audited)
                                                   £'000       £'000      £'000
Net cash (outflow)/inflow from operating         (3,486)     (1,719)      5,162
activities
Returns on investments and servicing of               30          11         81
finance
Taxation                                           (291)       (194)      (499)
Capital expenditure and financial investment
- purchase of fixed assets                         (600)       (385)    (1,034)
- sale of fixed assets                                26           -        160
Payment of deferred consideration                      -           -       (26)
Equity dividends paid                              (726)       (418)      (585)
                                              __________  __________ __________
Net cash (outflow)/inflow before financing       (5,047)     (2,705)      3,259
Financing
Decrease in debt                                    (27)         (6)       (23)
Purchase of own shares                                 -           -    (1,595)
                                              __________  __________ __________
(Decrease)/increase in cash in the period        (5,074)     (2,711)      1,641
                                              __________  __________ __________

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                   £'000       £'000      £'000
(Decrease)/increase in cash in the period        (5,074)     (2,711)      1,641
Cash outflow from decrease in lease                   27           6         23
financing
                                              __________  __________ __________
Change in net funds resulting from cash          (5,047)     (2,705)      1,664
flows
Exchange movements                                   (2)           -          6
                                              __________  __________ __________
Movement in net funds in the period              (5,049)     (2,705)      1,670
Net funds at 1 April 2001                          5,148       3,478      3,478
                                              __________  __________ __________
Net funds at 30 September 2001                        99         773      5,148
                                              __________  __________ __________



NOTES TO THE CASH FLOW STATEMENT

NET CASH FLOW FROM OPERATING ACTIVITIES
                                              Six months  Six months Year ended
                                                  37,164      37,164     36,981
                                                   2,001       2,000      2,001
                                             (unaudited) (unaudited)  (audited)
                                                   £'000       £'000      £'000
Operating profit                                     764         513      1,414
(Decrease)/increase in reserves
- exchange (loss)/gain on investment                 (8)          13         12
Depreciation charges                                 573         609      1,734
Amortisation of goodwill                               2           -          3
(Profit) on sale of tangible fixed assets            (4)           -       (87)
(Increase)/decrease in stocks                    (2,633)       (497)      1,843
(Increase)/decrease in debtors                   (2,729)     (3,004)         29
Increase in creditors                                599         614        133
(Decrease)/increase in sales returns                (50)          33         81
provision
                                              __________  __________ __________
Net cash (outflow)/inflow from operating         (3,486)     (1,719)      5,162
activities
                                              __________  __________ __________



GEOGRAPHICAL SEGMENT INFORMATION
                                  Six months        Six months       Year ended
                                      37,164            37,164           36,981
                                       2,001             2,000            2,001
                                 (unaudited)       (unaudited)        (audited)
BY ORIGIN                              £'000             £'000            £'000
TURNOVER
United Kingdom                         9,717             8,454           22,224
United States of America                 912               844            2,380
                                  __________        __________       __________
Group                                 10,629             9,298           24,604
                                  __________        __________       __________
                                       £'000             £'000            £'000
PROFIT BEFORE TAX
United Kingdom                           919               425            1,352
United States of America               (125)                99              143
                                  __________        __________       __________
Group                                    794               524            1,495
                                  __________        __________       __________
                                       £'000             £'000            £'000
NET ASSETS
United Kingdom                        12,179            13,420           11,714
United States of America                 191               259              289
                                  __________        __________       __________
Group                                 12,370            13,679           12,003
                                  __________        __________       __________
BY DESTINATION                         £'000             £'000            £'000
TURNOVER
United Kingdom                         7,898             6,829           19,159
Rest of the world                      2,731             2,469            5,445
                                  __________        __________       __________
Group                                 10,629             9,298           24,604
                                  __________        __________       __________



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 2001.
The taxation charge for the six months ended 30 September 2001 has been
calculated on the basis of the estimated tax rate for the twelve months ending
31 March 2002.

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 2001 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 2001.

3. Earnings per share

The calculation of earnings per ordinary share is based on the profits after
taxation for the period of £522,000 (six months ended 30 September 2000 - £
337,000) and the weighted average number of ordinary shares in issue during
the period of 7,257,320 (six months ended 30 September 2000 - 8,357,320).

The diluted earnings per share is the same as the basic earnings per share as
the criteria required to exercise options have not been achieved in the
period.

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