Final Results - Year Ended 31 March 2000

Hornby PLC
27 June 2000

                                  Hornby PLC
             Preliminary Results for the year ended 31 March 2000


Chairman's Review

During the year ended 31 March 2000 Hornby saw significant variations in its
pattern of sales compared to previous years, although for the year as a whole
turnover was marginally ahead of last year.

The year began well with sales in the first quarter ahead of the previous
year.  However, during the next three months sales were below plan as some of
our customers, and in particular the multiple retailers, delayed taking in
their Christmas stocks. As reported in our January trading statement, sales in
October and November were also disappointing, but improved as consumer demand
built up during the Christmas period.  This was sustained over Christmas with
a good product sell through, particularly of Scalextric, so that in the New
Year retail stocks were particularly low.   Consequently in the last quarter
of the financial year (January to March 2000) sales improved partly due to
restocking and as a result of an early buy programme for our independent
customers and new product introductions.

Export sales were ahead of last year.  This was due mainly to North America,
where sales improved by 40% compared to the previous year.  The performance
was due to one of our US distributors, 'A Day at the Races', and its ability
to develop the US market for slot car racing.

We therefore sought to achieve a closer relationship with 'A Day at the Races'
which resulted in Hornby plc acquiring its business assets and key employees
with effect from 31 October 1999.  The cost of this acquisition was £216,000,
of which approximately half (£113,000) has been deferred over the next three
years.  Since this acquisition we have employed a national sales manager to
strengthen the US team who has developed a nationwide network of some 45 sales
agents.


All Hornby Railway and Scalextric car production has now been moved to the Far
East.  With the completion of the outsourcing programme the company will soon
be in a position where it can, if we receive a suitable offer for the Margate
site, move to more appropriate, modern and cost effective premises.   Agents
have been appointed and the property has been advertised.

Dividends

It is proposed that the final dividend will be 5p, resulting in a 7p dividend
for the year, the same as last year.  The dividend cover is 1.4 times earnings
after tax, also the same as last year, even though there has been a higher tax
charge.  The dividend will be payable on 18 August 2000 to those shareholders
on the register as at 28 July 2000.

Current Outlook

The current financial year has begun well with sales to the independent and
international markets ahead of plan.  Sales through Hornby's concessions have
also continued to perform well.  The sales pattern emerging for our multiple
retailer customers looks similar to last year.

A great deal has been achieved in the last few years in terms of updating the
product range, outsourcing its production and reorganising and reducing the
company's overhead.  At the same time the company has been trying to identify
strategic alliances or partnerships with whom either Hornby could merge or
which could provide additional product for Hornby to distribute to make better
use of its fixed cost base.

We announced on 14 April that, together with our financial advisor SG Hambros
Corporate Finance, we were reviewing our strategic options, including
considering possible offers for the company.  Preliminary Interest has been
expressed by a number of parties with whom discussions are being held.

If the current discussions do not lead to a satisfactory offer, it is intended
that the company will look to return funds in excess of business requirements
to shareholders early in 2001.

In the meantime the company is in its last phase of reconstruction and will
continue to reorganise to meet market needs and to take full advantage of its
outsourcing programme.  The company will also continue to develop organically
through its own product development programme, by acquiring licences and by
sourcing complementary product from other suppliers.  Naturally we will keep
all the options under review.  However, under current circumstances, there
will probably be limited opportunities for mergers or acquisitions.


Operational and Financial Review

Turnover for the year to 31 March 2000 was £21.5m compared to £21.2m achieved
in the year to 31 March 1999.

Although the sales for the financial year were similar to the previous year
there were a number of areas which were encouraging.

In Hornby Railways the sales of locomotives for the enthusiast/collector did
particularly well.  This would indicate that the improved quality in the level
of detail and the operating characteristics of the locomotives that have
resulted from the transfer of production to China are beginning to win back
market share from our competitors.  In particular Hornby launched a range of
super detailed locomotives (Flying Scotsman, Mallard and the 9F).

This year a new generation of super detailed locomotives will be introduced
with completely new tooling for the Merchant Navy and streamlined Coronation
locomotives.  This is the first time for almost twenty years that Hornby has
produced new tooling for steam locomotives.  Last year also saw the
introduction of the new Mark III coaches.  Further highly detailed rolling
stock will be introduced into the market this year.

It was also encouraging that the sales of the Scalextric sets were ahead of
the previous year, particularly as a number of our competitors started to sell
much more aggressively into the UK, attracted by the strong pound.

Scalextric also introduced a new generation of cars last year and in
particular the Caterham/Lotus 7 and Mercedes CLK.  These had much greater
internal and exterior detail and decoration than ever before.  This programme
will be continued with the introduction shortly of the Cadillac NorthStar LMP.
Improved electronics were also introduced including a power plus controller
and electronic lap counter.

To provide greater play value for the 5-10 year old market, two Hornby Action
Train sets have been launched featuring dinosaur and military themes.  In
addition, two 'My First Scalextric' sets have been introduced for the pre-
school market together with battery-operated Hornby wooden train sets and
further additions to the Noddy product range.

Hornby's website includes its Railway and Scalextric catalogues.  Hornby has
also launched a Virtual Railway on CD-ROM.  This will enable the user to plan
track layouts, buildings and scenics, and run locomotives and rolling stock on
their computer screen.  It will also be possible to link this new software to
the Hornby website.  In addition a software program is being developed to
enhance the play value of Scalextric.  This will provide a link between a
computer and a Scalextric layout and will enable the user to formulate and
monitor race strategy.  Further developments are under way to improve and
fully exploit the interactivity of the Hornby and Scalextric website.  These
include an interactive web page for the 2000 Formula 1 Grand Prix Season.

There are now some twenty Hornby/Scalextric concessions throughout the UK
mainly in department stores compared to ten last year.  This formula has been
extremely successful in bringing the full product range back onto the high
street and into shopping centres.  We will continue to increase the number of
concessions as opportunities arise.

The operating profit of £1.2m was 6% ahead of last year.  The lower overheads
which had come from outsourcing Hornby Railways and Scalextric car production
to the Far East were offset by lower margins, in both the domestic and export
markets, primarily as a result of competitive pressure from the strong pound.
In addition the higher tax charge has meant that the earnings per share are
slightly below last year at 9.7p (9.9p).

There was a small cash outflow of £207,000 during this year.  The purchase of
'A Day at the Races' and the reorganisation costs of £188,000 (1999 £318,000)
had an adverse impact.  Additionally debtors were higher than in the previous
year as a result of increased sales in the final quarter of the financial
year.  Stocks levels were maintained whilst production was transferred to the
Far East to provide the necessary customer service and product availability.
Now that the outsourcing programme has been completed we will be able to begin
to reduce our investment in stock.



UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2000


                                                   
                                                   2000              1999
                                               £'000  £'000     £'000   £'000

TURNOVER
Continuing operations                         20,747           21,233
Acquisition                                      730                -
                                              ------           ------
TOTAL TURNOVER                                       21,477            21,233
Cost of sales                                       (13,870)          (13,500)
                                                     ------            ------
GROSS PROFIT                                          7,607             7,733

Net operating expenses                               (6,407)           (6,604)
                                                     ------            ------
OPERATING PROFIT
Continuing operations                          1,084            1,129
Acquisition                                      116                -
                                              ------           ------
TOTAL OPERATING PROFIT                                1,200             1,129
Net interest receivable                                   7                12
                                                     ------            ------
PROFIT ON ORDINARY ACTIVITIES
 BEFORE TAXATION                                      1,207             1,141
Tax on profit on ordinary activities                   (398)             (315)
                                                     ------            ------
PROFIT FOR THE FINANCIAL YEAR                           809               826
Dividends                                              (585)             (585)
                                                     ------            ------
RETAINED PROFIT FOR THE FINANCIAL YEAR                  224               241
                                                     ======            ====== 
    
ATTRIBUTED TO:
The Company                                              (2)               (1)
Subsidiary undertakings                                 226               242
                                                     ------            ------
                                                        224               241
                                                     ======            ======

EARNINGS PER ORDINARY SHARE
Basic                                                  9.68p            9.88p
Diluted                                                9.68p            9.88p

DIVIDENDS PER ORDINARY SHARE
Interim paid                                            2.0p             2.0p
Final proposed                                          5.0p             5.0p
  
All of the activities of the Group are continuing.


STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2000


                                                       2000              1999
                                                      £'000             £'000

Profit for the financial year                           809               826
Exchange adjustments offset in reserves                   1                 -
                                                     ------            ------
Total recognised gains for the year                     810               826
                                                     ======            ======


UNAUDITED CONSOLIDATED BALANCE SHEET
AT 31 MARCH 2000

                                                       2000              1999
                                                      £'000             £'000

FIXED ASSETS
Intangible assets                                        40                 -
Tangible assets                                       4,478             4,815
                                                     ------            ------
                                                      4,518             4,815
CURRENT ASSETS
Stocks                                                6,083             5,655
Debtors                                               4,944             4,142
Cash at bank and in hand                              3,565             3,772
                                                     ------            ------
                                                     14,592            13,569

CREDITORS:Amounts falling due within one year        (4,660)           (4,294)
                                                     ------            ------
NET CURRENT ASSETS                                    9,932             9,275
                                                     ------            ------

TOTAL ASSETS LESS CURRENT LIABILITIES                14,450            14,090

CREDITORS: Amounts falling due after more
           than one year                               (148)              (20)

PROVISIONS FOR LIABILITIES AND CHARGES                 (806)             (799)
                                                     ------            ------
NET ASSETS                                           13,496            13,271
                                                     ======            ======

CAPITAL AND RESERVES
Called up share capital                                 418               418
Share premium account                                 4,525             4,525
Revaluation reserve                                     825               842
Other reserves                                        1,688             1,688
Profit and loss account                               6,040             5,798
                                                     ------            ------
EQUITY SHAREHOLDERS' FUNDS                           13,496            13,271
                                                     ======            ======


UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2000



                                                   2000              1999
                                               £'000  £'000     £'000   £'000

Net cash inflow from operating activities             1,694             2,183

Returns on investments and servicing 
 of finance                                               7                12
UK Taxation                                            (171)             (693)

Capital expenditure - additions                 (964)          (1,099)
                    - disposals                   40                8
                                              ------           ------
                                                       (924)           (1,091)

Acquisitions                                    (103)               -
Overdraft held upon acquisition                  (66)               -
                                              ------           ------
                                                       (169)                -

Equity dividends paid                                  (585)             (585)
                                                     ------            ------
Net cash outflow before financing                      (148)             (174)

Financing
Decrease in debt                                        (59)              (26)
                                                     ------            ------
Decrease in net cash in the year                       (207)             (200)
                                                     ======            ======



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                                       2000              1999
                                                      £'000             £'000

Decrease in cash in the year                           (207)             (200)
Cash outflow from decrease in lease financing            59                26
                                                     ------            ------
Change in net funds resulting from cash flows          (148)             (174)
New finance leases                                      (59)              (24)
New finance leases upon acquisition                     (13)                -
                                                     ------            ------
Movement in net funds in the year                      (220)             (198)

Net funds at 1 April 1999                             3,698             3,896
                                                     ------            ------
Net funds at 31 March 2000                            3,478             3,698
                                                     ======            ======


NOTES TO THE CASH FLOW STATEMENT

NET CASH FLOW FROM OPERATING ACTIVITIES


                                                       2000              1999
                                                      £'000             £'000

Operating profit                                      1,200             1,129
Increase in reserves - exchange gain on investment        1                 -
Depreciation charges                                  1,363             1,375
Goodwill written off                                      2                 -
(Profit) on sale of tangible fixed assets                 -                (8)
Decrease/(increase) in stocks                           125              (117)
(Increase) in debtors                                  (655)             (106)
(Decrease)/increase in creditors                       (353)              165
Increase/(decrease) in sales returns provision           11              (255)
                                                     ------            ------
Net cash inflow from operating activities             1,694             2,183
                                                     ======            ======

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
                          2000      1999      2000     1999     2000     1999
                         £'000     £'000     £'000    £'000    £'000    £'000

United Kingdom          20,747    21,233     1,097    1,141   13,324   13,271
United States of America   730         -       110        -      172        -
                        ------    ------    ------   ------   ------   ------
Group                   21,477    21,233     1,207    1,141   13,496   13,271
                        ======    ======    ======   ======   ======   ======


TURNOVER BY DESTINATION
                                                          2000           1999
                                                         £'000          £'000

United Kingdom                                          17,495         17,788
Rest of World                                            3,982          3,445
                                                        ------         ------
Group                                                   21,477         21,233
                                                        ======         ======


NOTES

1.   The  basic earnings per share for the year ended 31 March
     2000  is  based on the profit after taxation of  £809,000
     (year  ended  31 March 1999 - £826,000) and the  weighted
     average  number  of ordinary shares in issue  during  the
     year of 8,357,320 (year ended 31 March 1999 - 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.

2.   The  proposed dividend will be paid on 18 August 2000  to
     members  on  the register as at 28 July  2000.   The  ex-
     dividend date will be 24 July 2000.

3.   The   profit  and  loss  account,  statement   of   group
     recognised gains and losses and balance sheet set out above
     for the year ended 31 March 2000 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 1999 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 1999.

5.   This  preliminary announcement was approved by the  Board
     on 26 June 2000.




Date: 27th June 2000

For further information please contact:

Jonathan  Shillington           City Profile         020-7726-8588