Final Results

Hornby PLC
04 June 2004

                      HORNBY BOOSTED BY NEW PRODUCT RANGES
                AND LOOKS FORWARD TO TARGETED INTERNATIONAL GROWTH

Hornby Plc, ('Hornby') the models and collectables Group, has today announced
its preliminary results for the year ended 31 March 2004. Hornby's two main
products are Hornby model railways and Scalextric slot car racing systems.

   • Pre-tax profits up 20% to £6.5 million (2003: £5.4 million)
   • Turnover up 14% to £39.0 million (2003: £34.1 million)
   • Earnings per share up 14% to 61.0p (2003: 53.3p)
   • 5 for 1 share split proposed
   • Acquisition of Spanish model train manufacturer Electrotren S.A. for £5.3
     million
   • Proposed acquisition of certain assets of Lima S.p.A proceeding to plan
   • Cash position at 31 March 2003 at £5.8 million after Electrotren S.A.
     acquisition (2003: £7.9 million)
   • Final dividend of 22p declared - Total dividend up 20% to 30p (2003:
     25p)

Frank Martin, Chief Executive of Hornby, said,

' This is again an excellent set of results for Hornby. Sales have been boosted
by our new product launches and our focus on growing our network of in-store
concessions. New launches including Live Steam and the range of MotoGP
Scalextric motorbikes, Scalextric Sport Digital and Scalextric Sport World have
all won acclaim and will bring new hobbyists into the sector. We have proved
that our extended ranges of Hornby and Scalextric appeal across the generations.

' Our recent growth has been organic. We are now at an exciting time of our
development having targeted bolt-on acquisitions which are broadening sales
and product line coverage overseas. Our acquisition of Electrotren in Spain has
bedded down well and we have announced the proposed acquisition of certain
assets of Lima, a famous Italian model train manufacturer. Once the acquisition
is competed, I am confident that we will be able to replicate our successful
UK strategy and re-invigorate the Lima brands.

' Looking to the future we have an excellent opportunity to continue to make
considerable progress. We are confident that our move into new markets will 
strengthen our position in both the UK and overseas. Trading in the new 
financial year has again started well and we have a strong pipeline of new 
product developments to ensure continued growth during the current financial 
year and beyond. Our European acquisitions will broaden the Company's base of 
operations and provide a platform from which to sell more strongly in 
Continental European markets.'

                                     -ends-

Date: 4 June 2004
For further information contact:

Hornby Plc                                 City Profile Group
Frank Martin, Chief Executive              Simon Courtenay
John Stansfield, Finance Director          020-7448-3244 or 07958-754273
01843-233500
On 4 June: 020-7448-3244
Web: www.hornby.com or:
www.scalextric.com


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CHAIRMAN'S STATEMENT


I am pleased to be able to report continued encouraging progress in the past 12
months. In global markets which remained challenging, sales increased by 14% to
£39.0 million. Profit before tax at £6.5 million is 20% above last year's result
(£5.4 million), and basic earnings per share are up by 14% to 61.0p.

Proposed share split

It is proposed to subdivide the Company's existing ordinary shares of 5p each
(issued and unissued) ('Existing Ordinary Shares') into five new ordinary shares
of 1p each ('New Ordinary Shares'). The share split is proposed because of the
Board's belief that the share price of the Existing Ordinary Shares, which has
risen by over 600% since the beginning of the calendar year 2001, is now at a
level that might impair their marketability and liquidity. The Directors believe
that by lowering the price at which the Company's securities are traded,
shareholders will benefit from their increased marketability and liquidity.
Accordingly the Company will be seeking shareholder approval at the Annual
General Meeting to be held on 22 July 2004 to implement the subdivision. Each
shareholder's percentage holding will not be affected and, except for the change
to the nominal value, the New Ordinary Shares will have the same rights as the
Existing Ordinary Shares.

If approved by shareholders, the share split will become effective at close of
business on 30 July 2004. Further details will be contained in Hornby's annual
report and accounts.

Dividend

Reflecting the continued strength of the Company's performance your Board is
recommending a final dividend of 22p per Existing Ordinary Share. This will
bring the total dividend for the year to 30p per Existing Ordinary Share, an
increase of 20% over the 25p declared in the previous financial year. This
dividend is payable to all shareholders on the register as at 30 July 2004 and 
will be paid on 20 August 2004.

Business Review

All of the Company's distribution channels, both in the UK and internationally,
again showed good year-on-year sales growth across both Hornby and Scalextric
ranges, underlining the well-balanced nature of our business. Growth in our
in-store concessions, which now total 111, has exceeded expectations. This
high-visibility presence throughout the year in major retail outlets has helped
to underpin our retail growth.

As predicted in last year's report, the introduction of exciting new products
across both Hornby and Scalextric ranges has continued to attract both positive
comment and, more importantly, new business. First of the new products
introduced in the summer of last year, was Hornby Live Steam. This exciting
innovation, in both engineering and conceptual terms, has proved highly
successful. In January this year the Company was awarded the British Association
of Toy Retailers Award for 'Innovative Toy of 2003'; a distinction for a model
railway locomotive! Live Steam was available in the market place for the
Christmas season 2003 and contributed to sales and profitability in the
financial year recently ended. Other major innovations for the Scalextric ranges
included MotoGP, Scalextric Sport Digital and Scalextric Sport World. Sales of
these products will contribute to the current year's earnings.

In the United States it was again pleasing to see sales grow by 9% to $5.4
million. Pre-tax profit was also up over 25% on the previous year. This progress
was achieved against the background of a generally weak US economy. Our
commitment to developing the US market continues and with the advent of Live
Steam a limited range of Hornby products will also be marketed through our US
distribution channels.

European Acquisitions

The Company's growth in recent years, across both Hornby and Scalextric ranges,
has been organic. The Board believes that there exist substantial opportunities
for further broadening of both product ranges and to continue to grow
profitability within our core hobby business.

Having consolidated Hornby's position in the UK over the past 3 years, the Board
believed it appropriate to explore suitable acquisition opportunities. In the
collectibles/models sector, European markets tend to be fragmented with highly
specialised operators. The opportunity to consolidate certain parts of the
market and to apply the lessons learned by Hornby in the UK led to the
announcements earlier this year of Hornby's intention to expand into both the
Spanish and Italian markets. Electrotren S.A., based in Madrid, and acquired on
31 March 2004, is a leading company servicing the European railway modelling
sector with particular emphasis on the Spanish and trans-European railway
markets. Since acquiring Electrotren we continue to be impressed by the
incumbent management and by the opportunities for future growth in the business.
Similarly, in Italy, your Board believes that the potential acquisition of
certain assets of Lima S.p.A (in liquidation) will provide Hornby with the
opportunity to re-invigorate the Lima, Jouef and Rivarossi brands and the
quality of their products. Lima has a tradition of producing desirable European
product in the railway modelling sector. Clearly, as both opportunities develop,
your Board will consider the marketing opportunities for our other products in
these markets.

Property

In December last year the Secretary of State refused permission for the
development of our current Margate site as a D.I.Y. superstore. However I am
happy to be able to report that the business is not constrained by continuing to
operate from the present facilities.

Global Context

At the time of the last Annual Report it appeared that the two major issues
affecting global confidence were in the process of becoming resolved.

With our manufacturing base in China we were naturally concerned about the
potential impact of the SARS virus. This matter happily appears now to be under
control and we do not anticipate any significant related issues. Despite the
speedy conclusion of the war in Iraq in 2003 the world continues to suffer the
after-effects. In particular the impact on oil prices is a concern to all
trading operations. Your Board continues to monitor these issues closely.

Product Development

The past year has seen some significant developments in both product ranges, as
referred to earlier in this report. Both brands continue to focus significant
resources on new product development and enhancement of current product ranges.
These initiatives will continue to bear fruit during the coming year. We will
also, of course, focus on product improvement and development in Electrotren and
Lima (once acquired).

Outlook

Sales growth momentum is now well established in both the UK and our
international target markets. Trading in the new financial year has again
started well and we have a strong pipeline of new product developments to ensure
continued growth during the current financial year and beyond. Our European
acquisitions will broaden the Company's base of operations and provide a
platform from which to sell more strongly in Continental European markets.

I should like once again to thank Frank Martin our chief executive, our
directors and all our staff for their dedicated support and hard work. They can
be satisfied that their efforts have produced excellent results.


Neil Johnson

4 June 2004



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2004

                                                     2004                  2003
                                                    £'000                 £'000

TURNOVER                                           38,970                34,142
Cost of sales                                     (20,083)              (18,369)
                                                  _______                _______
GROSS PROFIT                                       18,887                15,773

Net operating expenses                            (12,524)              (10,417)
                                                  _______                _______
OPERATING PROFIT                                    6,363                 5,356
Net interest receivable                               106                    55
                                                  _______                _______
PROFIT ON ORDINARY ACTIVITIES
 BEFORE TAXATION                                    6,469                 5,411
Tax on profit on ordinary activities               (1,974)               (1,519)
                                                  _______                _______
PROFIT ON ORDINARY ACTIVITIES
 AFTER TAXATION                                     4,495                 3,892
Dividends                                          (2,199)               (1,830)
                                                  _______                _______
RETAINED PROFIT
 FOR THE FINANCIAL YEAR                             2,296                 2,062
                                                  _______                _______
ATTRIBUTED TO:
The Company                                           (30)                  (45)
Subsidiary undertakings                             2,326                 2,107
                                                  _______                _______
                                                    2,296                 2,062
                                                  _______                _______
EARNINGS PER ORDINARY SHARE
Basic                                               61.02p                53.32p
Diluted                                             58.20p                52.00p

All of the activities of the Group are continuing.



STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2004
                                                     2004                  2003
                                                    £'000                 £'000

Profit for the financial year                       4,495                 3,892
Exchange adjustments offset in reserves               (33)                  (21)
                                                  _______                _______
Total recognised gains for the year                 4,462                 3,871
                                                  _______                _______


CONSOLIDATED BALANCE SHEET
AT 31 MARCH 2004
                                                     2004                  2003
                                                    £'000                 £'000
                                                                    As restated
FIXED ASSETS
Intangible assets                                   4,017                    31
Tangible assets                                     4,436                 3,569
                                                  _______                _______
                                                    8,453                 3,600
                                                  _______                _______

CURRENT ASSETS
Stocks                                              7,369                 6,150
Debtors                                             6,217                 5,222
Cash at bank and in hand                            5,806                 7,909
                                                  _______                _______
                                                   19,392                19,281
CREDITORS: Amounts falling due
           within one year                         (9,886)               (7,187)
                                                  _______                _______
NET CURRENT ASSETS                                  9,506                12,094
                                                   _______               _______

TOTAL ASSETS LESS CURRENT LIABILITIES              17,959                15,694
CREDITORS: Amounts falling due after
            more than one year                      (103)                   (22)
PROVISIONS FOR LIABILITIES AND CHARGES              (527)                  (486)
                                                   _______               _______
NET ASSETS                                         17,329                15,186
                                                   _______               _______

CAPITAL AND RESERVES
Called up share capital                               370                   367
Capital redemption reserve                             55                    55
Share premium account                               4,797                 4,696
Revaluation reserve                                   757                   774
Other reserves                                      1,688                 1,688
Profit and loss account                             9,662                 7,606
                                                   _______               _______
EQUITY SHAREHOLDERS' FUNDS                         17,329                15,186
                                                   _______               _______


CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2004
                                                2004                 2003
                                          £'000      £'000     £'000      £'000
Net cash inflow from
 operating activities                                8,210                5,814
Returns on investments and
 servicing of finance - net 
 interest received                                     106                   55
Taxation                                            (1,864)              (1,662)
Capital expenditure and
 financial investment
  - purchase of fixed assets             (1,370)              (1,219)
  - sale of fixed assets                     27                   60
  - purchase of own shares                 (224)                (192)
                                         ______               ______
                                                    (1,567)              (1,351)

Acquisitions
  - purchase of subsidiary undertakings  (5,303)                   -
  - cash held upon acquisition              222                    -
  - payment of deferred consideration         -                  (49)
                                         ______               ______
                                                    (5,081)                 (49)
Equity dividends paid                               (1,968)              (1,524)
                                                     ______               ______
Net cash (outflow)/inflow 
 before financing                                   (2,164)               1,283

Financing
Issue of ordinary shares                               104                  175
Capital element of finance lease 
 payments                                              (26)                (17)
                                                    ______                ______
(Decrease)/increase in cash 
 in the year                                        (2,086)               1,441
                                                    ______                ______

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                       2004                2003
                                                      £'000               £'000

(Decrease)/increase in 
 cash in the year                                    (2,086)              1,441
Cash outflow from decrease 
 in lease financing                                      26                  17
                                                    _______              _______
Change in net funds resulting from cash flows        (2,060)              1,458
New finance leases                                     (105)                (28)
New finance leases upon acquisition                     (12)                  -
Exchange movements                                      (17)                 (9)
                                                    _______              _______
Movement in net funds in the year                    (2,194)              1,421

Net funds at 1 April 2003                             7,867               6,446
                                                    _______              _______
Net funds at 31 March 2004                            5,673               7,867
                                                    _______              _______

NOTES TO THE CASH FLOW STATEMENT

NET CASH FLOW FROM OPERATING ACTIVITIES

                                                       2004                2003
                                                      £'000               £'000

Operating profit                                      6,363               5,356
Depreciation charges                                  1,364               1,266
Amortisation of goodwill                                  3                   3
Loss/(profit) on sale of tangible fixed assets            2                 (18)
(Increase) in stocks                                   (830)               (615)
(Increase) in debtors                                  (401)               (374)
Increase in creditors                                 1,659                 341
Increase/(decrease) in sales returns provision           50                (145)
                                                    _______              _______
Net cash inflow from operating activities             8,210               5,814
                                                    _______              _______

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
                  2004        2003     2004         2003      2004        2003
                 £'000       £'000     £'000       £'000     £'000       £'000
                                                                   As restated
United Kingdom  36,028      30,680     6,399       5,347    15,762      14,951
United States 
 of America      2,942       3,462        70          64       254         235
Spain                -           -         -           -     1,313           -
                ______      ______    ______      ______    ______      ______
Group           38,970      34,142     6,469       5,411    17,329      15,186
                ______      ______    ______      ______    ______      ______

TURNOVER BY DESTINATION                                2004                2003
                                                      £'000               £'000

United Kingdom                                       30,961              26,473
Rest of World                                         8,009               7,669
                                                     ______               ______
Group                                                38,970              34,142
                                                     ______               ______


NOTES

1. The calculation of basic earnings per ordinary share is based on the profit
attributable to ordinary shareholders for the financial year of £4,495,000 (2003
- £3,892,000) and the weighted average number of ordinary shares in issue during
the year of 7,366,417 (2003 - 7,299,894).

                                       2004                      2003
                             Earnings       Earnings   Earnings        Earnings
                                £'000      per share      £'000       per share
                                               pence                      pence
                      
Earnings per share

Basic                           4,495          61.02      3,892           53.32
Diluted                                        58.20                      52.00

The following table shows a reconciliation of the weighted average number of
shares used for calculating the basic and diluted earnings per share.

                                       2004                      2003
                                     Number                    Number
                                  of shares                 of shares

Used for calculating basic 
 earnings per share               7,366,417                 7,299,894
Dilution due to share 
 option schemes                     356,362                   185,147
                                  _________                  ________
Used for calculating 
 diluted earnings per share       7,722,779                 7,485,041
                                  _________                 _________

2. The proposed dividend will be paid on 20 August 2004 to members on the
register as at 30 July 2004. The ex-dividend date will be 28 July 2004.

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 2004 are not
statutory accounts, are abridged and audited. Full audited accounts will be
filed with the Registrar of Companies in due course. Full audited accounts for
the year ended 31 March 2003 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
2003 except that UTIF 38 has been adopted this year and as a result the
comparatives have been restated accordingly. £192,000 previously shown as an
investment has been restated and shown as a deduction from the profit and loss
account reserve. A further £224,000 has been used to purchase shares as part of
this plan in the current year and shown as a deduction from the profit and loss
account reserve.

5. This preliminary announcement was approved by the Board on 4 June 2004.

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


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