[WWI] Hornby - not doing that well

[Andy Bannister]

I thought all their new stuff was being produced in Korea anyway?

Andy 
 
CEO, Editor in Chief, Choreographer, Teaboy
www.warpedplastic.co.uk 


> -----Original Message-----
> From: wwi-bounces at wwi-models.org 
> [mailto:wwi-bounces at wwi-models.org] On Behalf Of Michael Kendix
> Sent: 01 June 2007 17:10
> To: wwi at wwi-models.org
> Subject: [WWI] Hornby - not doing that well
> 
> 
> Hi:
> 
> Looks like Hornby, who acquired the Airfix and Humbrol lines, 
> is not doing 
> that well.
> 
> Note the mention of Airfix and Humbrol production moving to 
> China. I guess 
> the Hull production facility is closed or will be closing?
> 
> Michael
> 
> 
> 
> This from the Electronic Telegraph's business section:
> >>>>>
> Hornby shares slump as results disappoint
> By Caroline Muspratt
> Last Updated: 8:58am BST 01/06/2007
> 
> 
> 
> Model train maker Hornby saw a recovery in sales in the 
> second half of the 
> year but the company's full-year results did not meet market 
> expectations.
> 
> The hobby company said that sales rose 6pc to £46.9m last 
> year while pre-tax 
> profits rose to £8.1m from £8m. The shares fell 10¼ to 275¾p in early 
> trading.
> 
> Frank Martin, chief executive of Hornby, said: "This has been 
> an important 
> developmental year for the group. All our overseas 
> subsidiaries have made 
> excellent progress in terms of sales and profits growth and the 
> establishment of a platform for future profitable growth."
> 
> advertisement
> He added: "First half sales were below the previous year but 
> in the second 
> half we were able to recover more than this shortfall, thus 
> demonstrating 
> once again the robust nature of the hobbyist market. Our 
> international 
> operations are now beginning to show their true potential, and we are 
> confident that they will continue to deliver encouraging 
> progress in the 
> future."
> 
> Mr Martin said that customers are prepared to pay more for 
> digital control 
> systems in both Scalextric and Hornby.
> 
> UK sales were flat on the previous year after a weak first 
> half was offset 
> by a recovery in the second part of the year helped by demand 
> in the run-up 
> to Christmas. International sales also improved in the second 
> half of the 
> year
> 
> The group made a loss of £134,000 on setting up its German 
> business but said 
> the unit would make a positive contribution to profits in the 
> new financial 
> year while all other European subsidiaries reported increased 
> profits in the 
> year.
> 
> In the US, sales rose 8pc to $5.6m but when translated into 
> sterling sales 
> fell to £2.83m compared to £2.95m the year before.
> 
> Results were also hit by the closure of the Scalextric Race 
> World retail 
> store in Tacoma. Last year Hornby bought the Humbrol and 
> Airfix brands and 
> is transferring production to China.
> 
> Altium Securities provisionally reduced its target price on 
> the stock to 
> 250p from 315p and cut its recommendation to reduce from add. 
> Bridgewell 
> Securities also downgraded its recommendation to neutral from 
> overweight, 
> reflecting a slower recovery in the UK than expected.
> 
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