Interim Management Statement

RNS Number : 3759L

Hornby PLC

01 August 2011

 



Hornby Plc ("Hornby" or "the Company")

INTERIM MANAGEMENT STATEMENT

Speaking today at the Annual General Meeting of Hornby Plc ("Hornby" or the "Group"), the international models and collectibles group, the Chairman Neil Johnson, will provide the following trading update and first interim management statement, relating to the period since 1 April 2011.

Business performance

" Over the past ten years our strategy has been to build a broadly based hobby business, spanning a number of product categories and geographical markets. This strategy now provides us with a strong platform from which to leverage our brand strength in order to continue to grow our business.

" Our businesses in the UK, mainland Europe and the USA have made a good start to the new financial year. Against a challenging economic background, demand for our products remains strong.  Since the beginning of the financial year shipments from our principal supplier in China have been in line with our requirements, supplemented by increased shipments from our broader supply base. This has enabled us to achieve year on year sales growth in the UK and Continental Europe. 

"In the UK, all of our brands are performing well and we are encouraged by the sales momentum that is building in our London 2012 Olympic ranges. We expect this momentum to continue to gather pace as the Olympics draw nearer. The new channels of distribution that we have opened as a result of our London 2012 ranges will provide a solid platform for additional sales growth following the Games.

" In Europe, we are delighted that improved supplies of model railway products from China have enabled us to begin to tap the large market potential for our products. We are also pleased that in France, three of our new Jouef locomotives received "Model of the Year" awards at the recent Paris Model Show. This demonstrates that our products, designed in Europe and manufactured in China are gaining recognition as "state of the art" in their sector.  

"  We are very pleased to have secured the worldwide licence for a range of Star Wars Scalextric products. We are confident that this license, applied across a range of 1:32 Scalextric products and 1:64 Micro Scalextric products, will build our presence globally and particularly in the USA.

Financial position

" There have been no significant changes in the financial position of the Group as at 30 June 2011 since the publication of the Report and Accounts in respect of the financial year ended 31 March 2011.

 " The Group continues to have access to secured banking facilities of £19.0 million in the UK maturing between 2012 and 2014. Net debt at 30 June 2011 was £9.3 million (31 March 2011 £6.1 million).

Outlook

"  As is the case every year,  consumer confidence  in the pre-Christmas period will be an important factor in determining the overall result for the financial year.   The effect of pent-up demand in Europe, now being satisfied by improved supplies from China, and the positive impact of incremental sales of London 2012 merchandise gives us confidence in the out-turn for the year. 

" In conclusion, the Group is trading well.  We have laid the foundations for growth in both the short and medium term and we look forward to the future with confidence."

-ends-

Date: 1^st August 2011

For further information contact:

Hornby Plc	City Profile
Frank Martin, Chief Executive Andrew Morris, Finance Director 01843 233500 Web: www.hornby.com	Simon Courtenay Sheena Khan 020 7448 3244 or 07958 754273

 

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