Trading Statement

RNS Number : 9391L

Hornby PLC

01 May 2015

 



Hornby Plc ("Hornby" or "the Group")

 Trading Update and Board Change

Hornby Plc, the international models and collectibles Group, is today updating shareholders on trading for the period from 1 January 2015 to the end of our financial year, 31 March 2015.

Business Performance 

The Group has traded in line with the Board's expectations in the last quarter and has delivered significantly improved sales growth during the period, against a particularly weak quarter this time last year. As a result, the year as a whole is now expected to show sales growth of 13% both for the Group and the UK business. We are pleased that this has allowed the investment in the business turnaround to continue at the same time as returning to an underlying profit in the region of £1.5m, which is in line with market expectations. This will be the first year for three years that Hornby has delivered a pre-tax profit.

Net debt at the end of March 2015 is now expected to be around £7.5m compared to £7.9m at the end of December 2014 and £7.3m at 31 March 2014.

Board Change

Nick Stone has informed the Board of his intention to leave the Group to pursue other opportunities and will leave his role of Group Finance Director later in the year. A search process for a replacement has commenced and an update will provided in due course.

Outlook

The move from the Group's UK old headquarters in Margate to the Discovery Park in Sandwich has now started and is expected to be complete by the end of May 2015. The work on the Group's reorganization is continuing and plans are now developed for the next phase that incorporates the rationalization of the European warehouses and management structures for implementation later this year. Discussions are also underway with the group's main bankers for the renewal of facilities as part of the consideration of funding options for this investment. This work is expected to be completed in time for the release of the results for the year ended 31 March 2015 in the middle of June this year.

Richard Ames, Hornby Chief Executive Officer said,

" I would like to thank Nick for his contribution during this phase of the group's recovery.  A search has started for his successor and Nick will be involved in the process to ensure a smooth handover. Meanwhile, the business is in good shape as we continue to make encouraging progress with our strategy to drive Hornby's recovery."

Nick Stone, said,

" Much has been achieved since I joined Hornby.  The company has made great strides in its strategy to re-position the business for growth and I am pleased to have been part of the process as I now move on to other things."

- ends -

Date: 1 May 2015

For further information contact:

Hornby Plc	Broker Profile
Richard Ames, Chief Executive Officer	Simon Courtenay
Nick Stone, Group Finance Director	Harry Rippon
01843-233500	020-7448-3244

 

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