Interim Results
Hornby PLC
09 November 2007
HORNBY STEPS UP A GEAR AS CHRISTMAS APPROACHES
Hornby Plc ('Hornby'), the international hobby products group, has today
announced its interim results for the half year ended 30 September 2007.
• Turnover up by 37% to £24.6 million (2006 - £17.9 million)
• UK and Overseas subsidiaries delivering sales growth
• Pre-tax profits up to £2.6 million (2006 - £1.8 million)*
• Earnings per share up to 3.84p (2006 - 3.16p)*
• Digital Technology Platform driving model railway and slot car demand
• Airfix and Humbrol brands re-launched
• Vodafone McLaren Mercedes Team and Transformers licences boost slot car
product sales
• Interim dividend of 2.7p proposed (2006 - 2.5p)
* Pre-tax profit and earnings per share before amortisation of intangibles and
foreign exchange translational adjustments on inter company loans.
Frank Martin, Chief Executive of Hornby, said,
' We are delighted to report such a strong performance right across the group.
Our UK and overseas businesses are delivering very encouraging growth. The key
drivers of this performance have been the adoption of the Digital Technology
Platform in model railways and slot-car racing, together with the increasing
appeal of our exciting programme of product introductions. The performance of
our European operations is particularly encouraging, as we have re-vitalised
these much loved brands after years of under investment.
' Scalextric has enjoyed a boost from a surge of interest in Formula 1 Grand
Prix Racing. In particular the ranges linked to our licence with the Vodafone
McLaren Mercedes Team are set to become best-sellers. Higher sales both of
Hornby and Scalextric sets have had a short term negative impact on gross
margins. We expect higher set sales to give rise to higher sales of accessories
as new hobbyists expand their collections. We are therefore forecasting an
improvement in gross margins in the second half as the balance of sales moves
back to accessories, particularly in the January - March period.
' Our strategy to develop new products associated with exciting licences also
benefited from the success of the Hollywood blockbuster, Transformers, which was
especially popular in the USA. The success of this licence has enabled us to
open trading relationships with major US retailers.
' Our businesses in Europe are performing very well. We have been encouraged by
the market reaction to the re-launch of our European brands and we are confident
that our European businesses will continue to be key drivers of growth over the
next five years.
' The re-launch of Airfix and Humbrol has been extremely well received by the
market. The business is back on track in time for Christmas. We have restocked
popular product in the shops and we have developed an exciting new product
programme which offers significant potential.
' Looking forward, we are confident about the Group's prospects. As we enter the
key Christmas period we are in excellent health. We have invested in the
positioning of all of our businesses so that they appeal to a wider range of
existing hobbyists and new entrants. Given the potential for our re-vitalised
overseas businesses, together with an excellent pipeline of new products, we are
confident that we will continue to deliver further growth.'
High resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk
-ends-
Date: 9 November 2007
For further information contact:
Hornby Plc cityPROFILE
Frank Martin, Chief Executive Simon Courtenay - 07958-754273
John Stansfield, Finance Director William Attwell - 07973-281650
01843-233500 020-7448-3244
On 9 November: 020-7448-3244
Web: www.hornby.com or: www.scalextric.com or www.airfix.com
HORNBY PLC INTERIM REPORT
CONDENSED CONSOLIDATED HALF-YEARLY FINANCIAL REPORT
SIX MONTHS TO 30 SEPTEMBER 2007
INTERIM MANAGEMENT REPORT
I am pleased to report that the Group has made excellent progress during the
first half of the year. Sales increased by 37% to £24.6m and profits increased
to £2.7m.
Our strategy to build a group comprising hobby businesses across a number of
territories is proving successful. We have made great progress in strengthening
and diversifying our revenue streams and the new businesses that have been added
to the group are performing well. They are all responding positively to the
action we have taken to re-vitalise them, by combining higher quality product
manufacturing with a strong product development and marketing programme. This
has helped each business to capitalise on the strength of their brands.
The acquisition of Airfix and Humbrol has been successful and the products have
been re-launched into a receptive market, with an exciting new product pipeline
to support future sales growth.
Sales have increased strongly in all of our operating subsidiaries, resulting in
Group sales of £24.6m, 37% higher than the same period last year (2006 -
£17.9m).
Gross margins were 3.9 percentage points lower than the previous year. Higher
charges for royalties and tooling amortisation, and a change in product/market
mix towards Scalextric and Hornby sets sold via major retail and export channels
impacted the gross margin percentage. Increased sales of sets generally result
in increased sales of higher margin accessories as new entrants begin to build
their collections. We are forecasting an improvement in margins in the second
half of the financial year.
Overheads, which comprise distribution costs, selling and marketing costs and
administrative expenses, were £1.9m higher than the previous year due in part to
additional overheads in respect of the Humbrol/Airfix business. In addition
higher variable selling costs were incurred in our European subsidiaries where
the majority of sales are made via commission agents, whose costs increase in
line with sales.
Profit before tax at £2.7m compares favourably with the prior year result of
£1.4m.
The Group net debt position of £8.9m as at 30 September 2007, has increased by
£5.1m compared to the previous year. However this position is after payment of
£2.6m for the Humbrol and Airfix assets in November 2006, and increased working
capital requirements as a result of growth in all subsidiaries. The Group
expects to be broadly cash neutral at the end of the financial year (2007 -
£627,000 overdraft), thus demonstrating its ability to continue to generate cash
from its operations.
Dividend
Your Board is continuing its policy of paying one third of the previous year's
full dividend at the half-year. Consistent with this policy, I am therefore
pleased to announce an 8% increase in the interim dividend to 2.7p (2006 - 2.5p)
per ordinary share, payable on 25 January 2008 for those shareholders on the
register as at 14 December 2007.
Operating Review
As I reported at the Annual General Meeting in July, order intake across all of
our operating subsidiaries has been significantly higher than in the previous
year. This has resulted in higher sales in the first half. We enter the
pre-Christmas period with a strong order book and with retail sales running at
higher levels than last year.
UK
In the UK, it is encouraging to report that sales of both Hornby and Scalextric
are higher than last year; driven in part by the growing uptake of our market
leading digital control technology in both product categories. This has been a
significant engine of growth as existing hobbyists and new market entrants adopt
the new technology. In addition, the Airfix and Humbrol business, acquired in
November 2006 made a positive contribution to sales and profits.
These factors resulted in an overall increase in sales in Hornby Hobbies Limited
of 32% compared to the previous year.
USA
Hornby America reported an improvement in sales of 11% in local currency,
although the weakening Dollar reduced this increase to just 2% when translated
into Sterling. The improvement in sales was driven in part by a good response to
the Micro-Scalextric product based on the Transformers movie and made under
licence from Hasbro Inc. We have also commenced trading with certain major
nationwide retailers, and we expect to be able to continue to develop these
trading relationships in the future.
Continental Europe
All of our subsidiaries in continental Europe made good progress in the half,
resulting in an overall sales increase of 70% compared to the previous year.
Spain
Hornby Espana increased sales as a result of a strong new product introduction
programme in its model railways business, coupled with an increase in sales of
Superslot slot car products. This is partly as a result of our licence with the
Vodafone McLaren Mercedes Team, under the terms of which we are able to use the
images of Fernando Alonso and Lewis Hamilton on our products. In addition,
Hornby Espana has supplied Superslot products in component form for use in a
'part-work' publication in Spain. This has contributed to the sales increase
whilst also having the additional benefit of broadening the brand awareness of
Superslot in Spain.
Italy
Hornby Italia increased sales significantly in the half and is on track to
continue this trend in the second half. Very encouragingly, sales growth in
Italy is being derived not only from the re-launched model railway ranges under
the Lima and Rivarossi brands, but also from significantly increased sales of
Scalextric and Hornby branded products. In particular, the Thomas the Tank
Engine range is gaining wide popularity in Italy, as a result of regular
transmissions of the eponymous children's television series.
France
Hornby France increased sales at a lower rate than Italy and Spain, but, with
the majority of new launches of Jouef model railway products taking place in the
second half, we are looking forward to a strong full year performance in France.
Germany
Hornby Deutschland continues to establish itself as a credible supplier to this
important market, which is the largest model railway market in Europe. The
response to our re-launched Lima, Rivarossi and Arnold ranges has been good. It
is clear however that, given the competitive pressures in the market, great
emphasis will be placed on the successful launch of newly tooled products. In
this connection the first such product, a BR58 steam locomotive, will be
launched in Germany prior to Christmas 2007. This product features a die-cast
body for both locomotive and tender. This is the first time Hornby Group has
introduced such features.
Product Pipeline
Part of the Group's recent success can be attributed to our focus on
strengthening our product pipeline. We have made excellent progress in
continuing to extend the depth of our new product launch programme. We continue
to seek exciting licenses which we can leverage to improve the distribution of
product ranges to our various sales channels.
Current Trading
The Group has made a strong start in the current financial year and the
prospects for the full year remain in line with our expectations. As always,
consumer demand in the pre-Christmas period is a key determinant of the Group's
result for the year. At this stage, order inflow from our retail customers is
encouraging across the whole Group.
Continued growth in our international subsidiaries as they re-establish
distribution of our core brands now being manufactured in China, coupled with
evidence of stronger consumer demand for our products in the UK market should
ensure continued growth across the Group in the second half of the financial
year. The Board looks to the future with confidence.
Neil A Johnson
Chairman
8 November 2007
INCOME STATEMENT
for the six months ended 30 September 2007
Six months Six months
to 30 September to 30 September
2007 2006
Restated*
(unaudited) (unaudited)
Note £'000 £'000
REVENUE 4 24,595 17,905
Cost of sales (12,745) (8,574)
_______ _______
GROSS PROFIT 11,850 9,331
Distribution costs (897) (673)
Selling and marketing costs (5,380) (4,186)
Administrative expenses (2,274) (1,830)
Foreign exchange losses (305) (936)
Other operating expenses (127) (218)
_______ _______
OPERATING PROFIT 2,867 1,488
Finance income 1 3
Finance costs (191) (70)
_______ _______
PROFIT BEFORE TAXATION 4 2,677 1,421
Taxation 8 (1,214) (527)
_______ _______
PROFIT FOR THE PERIOD ATTRIBUTABLE
TO EQUITY HOLDERS 1,463 894
_______ _______
EARNINGS PER ORDINARY SHARE
Basic 3.90p 2.38p
Diluted 3.76p 2.29p
All of the activities of the Group are continuing.
* See note 2.
The notes form an integral part of this condensed consolidated half-yearly
financial information.
BALANCE SHEET
as at 30 September 2007
30 September 30 September 31 March
2007 2006 2007
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
ASSETS
NON-CURRENT ASSETS
Goodwill 9,323 8,154 9,206
Intangible assets 2,284 1,513 2,321
Property, plant and equipment 7,634 6,252 7,458
Deferred income tax assets 199 378 421
_______ _______ _______
19,440 16,297 19,406
_______ _______ _______
CURRENT ASSETS
Inventories 12,142 10,645 8,441
Trade and other receivables 17,312 11,456 10,087
Cash and cash equivalents 134 621 329
_______ _______ _______
29,588 22,722 18,857
_______ _______ _______
LIABILITIES
CURRENT LIABILITIES
Borrowings 7 (9,017) (4,423) (1,005)
Derivative financial instruments (57) (51) (202)
Trade and other payables (10,016) (9,258) (7,216)
Provisions (596) (425) (293)
Current tax liabilities (1,263) (806) (1,291)
_______ _______ _______
(20,949) (14,963) (10,007)
_______ _______ _______
NET CURRENT ASSETS 8,639 7,759 8,850
_______ _______ _______
NON-CURRENT LIABILITIES
Borrowings 7 (47) (92) (53)
Deferred tax liabilities (390) (220) (358)
_______ _______ _______
(437) (312) (411)
_______ _______ _______
NET ASSETS 4 27,642 23,744 27,845
_______ _______ _______
SHAREHOLDERS' EQUITY
Share capital 6 378 376 378
Share premium 5,236 5,081 5,236
Other reserves 1,772 1,743 1,795
Retained earnings 20,256 16,544 20,436
_______ _______ _______
TOTAL EQUITY 27,642 23,744 27,845
_______ _______ _______
The notes form an integral part of this condensed consolidated half-yearly
financial information.
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2006
and 30 September 2007
Share Share Redemption Other Retained Total
Capital Premium Reserve Reserves Earnings* Equity
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2006 376 5,050 55 1,688 17,694 24,863
Currency translation differences - - - - 23 23
Profit for the period - - - - 894 894
____ _____ ____ ______ ______ ______
Total recognised income for the period - - - - 917 917
____ ______ ____ ______ ______ ______
Issue of shares - 31 - - - 31
Share based payments - - - - 117 117
Transfer to EBT - - - - (178) (178)
Dividends - - - - (2,006) (2,006)
____ _____ ____ ______ ______ ______
- 31 - - (2,067) (2,036)
____ _____ ____ ______ ______ ______
Balance at 30 September 2006 376 5,081 55 1,688 16,544 23,744
Balance at 1 April 2007 378 5,236 55 1,740 20,436 27,845
Currency translation differences - - - - (34) (34)
Cash flow hedges - - - - 81 81
____ ____ ____ ______ ______ ______
Net expense recognised directly in reserves - - - - 47 47
Profit for the period - - - - 1,463 1,463
____ _____ ____ ______ ______ ______
Total recognised income for the period - - - - 1,510 1,510
____ _____ ____ ______ ______ ______
Issue of shares - - - - - -
Share based payments - - - - 114 114
Deferred tax on share based payments - - - (23) - (23)
Shares vested from EBT - - - - 295 295
Dividends - - - - (2,099) (2,099)
____ _____ ____ ______ ______ ______
- - - (23) (1,690) (1,713)
____ _____ ____ ______ ______ ______
Balance at 30 September 2007 378 5,236 55 1,717 20,256 27,642
* Retained earnings includes £698,000 at 30 September 2007 (2006 - £715,000)
which is not distributable and relates to a 1986 revaluation of land and
buildings.
CASH FLOW STATEMENT
for the six months ended 30 September 2007
Six months Six months
to 30 September to 30 September
2007 2006
(unaudited) (unaudited)
£'000 £'000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (utilised in)/generated from operations (2,977) 318
Interest received 1 3
Interest paid (191) (70)
Tax paid (1,088) (1,336)
_______ _______
Net cash utilised in operating activities (4,255) (1,085)
_______ _______
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of trade assets and related costs - (36)
Proceeds from sale of property, plant and equipment 5 32
Purchase of property, plant and equipment (1,684) (1,515)
_______ _______
Net cash utilised in investing activities (1,679) (1,519)
_______ _______
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of ordinary shares - 31
Repayment of loans (16) (52)
Finance lease capital payments (11) (37)
Dividends paid to Company's shareholders (2,099) (2,006)
_______ _______
Net cash utilised in financing activities (2,126) (2,064)
_______ _______
Effect of exchange rate movements (152) 140
_______ _______
Net decrease in cash and cash equivalents (8,212) (4,528)
Cash and cash equivalents at beginning
of the period (627) 746
_______ _______
CASH, CASH EQUIVALENTS AND BANK OVERDRAFTS
AT END OF PERIOD (8,839) (3,782)
_______ _______
CASH AND CASH EQUIVALENTS CONSIST OF:
Cash and cash equivalents 134 621
Bank overdrafts (8,973) (4,403)
_______ _______
CASH AND CASH EQUIVALENTS AT END OF PERIOD (8,839) (3,782)
_______ _______
The notes form an integral part of this condensed consolidated half-yearly
financial information.
NOTES TO THE CASH FLOW STATEMENT
Cash flows from operating activities
Six months Six months
to 30 September to 30 September
2007 2006
(unaudited) (unaudited)
£'000 £'000
Profit for the financial period 1,463 894
Taxation 1,214 527
Interest payable 191 70
Interest receivable (1) (3)
Amortisation of intangible assets 80 50
Depreciation 1,474 944
Loss on disposal of tangible fixed assets 6 -
Share based payments 114 117
(Gain)/loss on financial derivatives (67) 51
Increase in provisions 303 125
Increase in inventories (3,701) (2,291)
Increase in trade and other receivables (7,145) (2,070)
Increase in trade and other payables 3,092 1,904
_______ _______
CASH (UTILISED IN)/GENERATED FROM OPERATIONS (2,977) 318
_______ _______
NOTES TO CONDENSED CONSOLIDATED HALF-YEARLY FINANCIAL REPORT
1. GENERAL INFORMATION
The Company is a limited liability company incorporated and domiciled in the UK.
The address of the registered office is Westwood, Margate, Kent CT9 4JX.
The Company has its primary listing on the London Stock Exchange.
This condensed consolidated half-yearly financial information was approved for
issue on 8 November 2007.
These interim financial results do not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 March 2007 were approved by the Board of Directors on 15 June 2007
and delivered to the Registrar of Companies. The Report of the Auditors on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 237 of the Companies Act 1985.
Forward Looking Statements
Certain statements in this half-yearly report are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations will
prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as a
result of a new information, future events or otherwise.
2. BASIS OF PREPARATION
This condensed consolidated half-yearly financial information for the half-year
ended 30 September 2007 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim
financial reporting' as adopted by the European Union. The half-yearly condensed
consolidated financial report should be read in conjunction with the annual
financial statements for the year ended 31 March 2007 which have been prepared
in accordance with IFRSs as adopted by the European Union.
2006 Restatement
The directors are constantly reviewing accounting policies and classification
for appropriateness and believe that foreign exchange translation adjustments
are more appropriately shown within operating expenses. Foreign exchange losses
of £936,000 previously included in cost of sales have been reallocated to
operating expenses.
3. ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 March 2007, as described in those
annual financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 31 March 2008.
• IFRIC 8, 'Scope of IFRS 2', effective for annual periods beginning on or
after 1 May 2006. This interpretation has not had any impact on the
recognition of share-based payments in the Group.
• IFRIC 9, 'Reassessment of embedded derivatives', effective for annual
periods beginning on or after 1 June 2006. This interpretation has not had a
significant impact on the reassessment of embedded derivatives as the Group
already assessed if embedded derivative should be separated using principles
consistent with IFRIC 9.
• IFRIC 11, 'IFRS 2 - Group and treasury share transactions', effective
for annual periods beginning on or after 1 March 2007. Management do not
expect this interpretation to be relevant to the Group.
• IFRS 7, 'Financial instruments: Disclosures', effective for annual
periods beginning on or after 1 January 2007. IAS 1, 'Amendments to capital
disclosures', effective for annual periods beginning on or after 1 January
2007. As this interim report contains only condensed financial statements,
and as there are no material financial instrument related transactions in
the period, full IFRS 7 disclosures are not required at this stage. The full
IFRS 7 disclosures, including the sensitivity analysis to market risk and
capital disclosures required by the amendment of IAS 1, will be given in the
annual financial statements.
4. GEOGRAPHICAL SEGMENT INFORMATION
Six months Six months
to 30 September to 30 September
2007 2006
(unaudited) (unaudited)
BY ORIGIN £'000 £'000
REVENUE
United Kingdom 17,327 13,149
United States of America 1,226 1,203
Rest of Europe 6,042 3,553
_______ _______
24,595 17,905
_______ _______
£'000 £'000
OPERATING PROFIT BEFORE TAXATION
United Kingdom 2,115 1,234
United States of America 27 31
Rest of Europe 725 223
_______ _______
Total operating profit 2,867 1,488
Interest (190) (67)
_______ _______
Profit before taxation 2,677 1,421
_______ _______
£'000 £'000
NET ASSETS
United Kingdom 11,055 8,889
United States of America 1,073 1,354
Rest of Europe 15,514 13,501
_______ _______
27,642 23,744
_______ _______
BY DESTINATION £'000 £'000
REVENUE
United Kingdom 14,306 10,963
Rest of the world 10,289 6,942
_______ _______
24,595 17,905
_______ _______
5. CAPITAL EXPENDITURE
Six months ended 30 September 2007 Tangible and
intangible assets
(unaudited)
£'000
Opening book amount 1 April 2007 18,985
Exchange adjustment 218
Additions 1,603
Disposals (11)
Depreciation, amortisation, impairment
and other movements (1,554)
______
Closing net book amount 30 September 2007 19,241
______
The fixed asset additions primarily relate to new product tooling (£1,339,000),
plant and equipment (£248,000) and motor vehicles (£16,000).
Six months ended 30 September 2006
Tangible and
intangible assets
(unaudited)
£'000
Opening book amount 1 April 2006 15,263
Exchange adjustment (203)
Acquisition of subsidiary 169
Additions 1,683
Disposals (32)
Depreciation, amortisation, impairment
and other movements (961)
______
Closing net book amount 30 September 2006 15,919
______
2007 2006
(unaudited) (unaudited)
CAPITAL COMMITMENTS £'000 £'000
At 30 September commitments were:
Contracted for but not provided for 519 715
_______ _______
The commitments relate to the acquisition of property, plant and equipment.
6. SHARE CAPITAL
The Group has 37,840,790 ordinary 1p shares in issue with nominal value £378,408
(2006 - £376,210).
No employee share options were exercised during the first half to 30 September
2007 (2006 - 37,500 shares), with exercise proceeds of £nil (2006 - £31,275).
The related weighted average price at the time of exercise was 228.2p in 2006.
7. BORROWINGS AND LOANS
30 September 30 September 31 March
2007 2006 2007
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
CURRENT:
Bank loans and overdrafts 8,973 4,403 956
Finance lease obligations 44 20 49
______ ______ ______
9,017 4,423 1,005
______ ______ ______
NON-CURRENT:
Finance lease obligations 47 92 53
______ ______ ______
The Group has a £12,000,000 overdraft facility at 30 September 2007 (2006 -
£7,000,000) that attracts interest at 1% above Barclays Bank base rate.
8. INCOME TAXATION
The tax expense is recognised based on management's last estimate of the
weighted average annual tax rate expected for the full financial year.
9. EARNINGS PER SHARE
Earnings per share attributable to equity holders of the company arises from
continuing and discontinued operations as follows:
30 September 30 September
2007 2006
(unaudited) (unaudited)
Earnings per share for profit from
continuing operations attributable to
the equity of the Company
- basic 3.90p 2.38p
- diluted 3.76p 2.29p
10. DIVIDENDS
A dividend that relates to the year ended to 31 March 2007 and that amounts
£2,099,000 was paid in August 2007.
11. CONTINGENT LIABILITIES
The Company and its subsidiary undertakings are, from time to time, parties to
legal proceedings and claims, which arise in the ordinary course of business.
The directors do not anticipate that the outcome of these proceedings and
claims, either individually or in aggregate, will have a material adverse effect
upon the Group's financial position.
12. RELATED-PARTY TRANSACTIONS
Key management compensation amounted to £1,134,000 for the six months to 30
September 2007 (2006 - £1,054,000).
30 September 30 September
2007 2006
(unaudited) (unaudited)
£'000 £'000
Salaries and other short-term benefits 967 869
Post-employment benefits 72 66
Share-based payments 95 119
______ ______
1,134 1,054
______ ______
13. EVENTS OCCURING AFTER THE BALANCE SHEET DATE
The Directors propose an interim dividend of 2.7p per ordinary share which is
payable on 25 January 2008.
14. SEASONALITY
Sales are subject to seasonal fluctuations, with peak demand in the October -
December quarter. For the six months ended 30 September 2007 sales represented
52% (2006 - 38%) of the annual sales for the year ended 31 March 2007.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Hornby Plc are listed in the Hornby Plc Annual Report for 31
March 2007. A list of current directors is maintained on the Hornby Plc website:
www.hornby.com.
Frank Martin
Chief Executive
8 November 2007
John Watson Stansfield
Finance Director
8 November 2007
INDEPENDENT REVIEW REPORT TO HORNBY PLC
INTRODUCTION
We have been engaged by the Company to review the condensed set of consolidated
financial statements in the condensed consolidated half-yearly financial report
for the six months ended 30 September 2007 which comprises the income statement,
balance sheet, statement of changes in equity, cash flow statement and related
notes. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of consolidated
financial statements.
DIRECTORS' RESPONSIBILITIES
The half-yearly financial report is the responsibility of, and has been approved
by the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of consolidated financial statements included in this half-yearly
financial report has been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
OUR RESPONSIBILITY
Our responsibility is to express to the company a conclusion on the condensed
set of consolidated financial statements in the half-yearly financial report
based on our review. This report, including the conclusion, has been prepared
for and only for the company for the purpose of the Disclosure and Transparency
Rules of the Financial Services Authority and for no other purpose. We do not,
in producing this report, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of consolidated financial statements in the half-yearly
financial report for the six months ended 30 September 2007 is not prepared, in
all material respects, in accordance with International Accounting Standard 34
as adopted by the European Union and the Disclosure and Transparency Rules of
the United Kingdom's Financial Services Authority.
PRICEWATERHOUSECOOPERS LLP
Chartered Accountants
Gatwick
8 November 2007
Notes:
(a) The maintenance and integrity of the Hornby Plc web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the web site.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
Tuesday, 14th May 2024
COMPANIES COVERED:
Latest directors dealings
- 3 hours ago Intercede Group
- 4 hours ago Serco Group
- 4 hours ago Shell
- 5 hours ago Serica Energy
- 5 hours ago Mortgage Advice Bureau (Holdings)