Interim Results

Hornby PLC
12 November 2004

                             HORNBY PROFITS UP 20%
                      AS EUROPEAN ACQUISITION BOOSTS SALES

Hornby Plc ('Hornby'), the models and collectables Group, has today announced
its interim results for the six months to 30 September 2004. Hornby's two main
products are model railways and Scalextric slot car racing systems.

Highlights

   • Pre-tax profits up by 20% to £2.6 million (2003: £2.2 million)
   • Sales up by 20% to £19.0 million (2003: £15.8 million)
   • Diluted earnings per share to 4.55p (2003: 3.91p)
   • 121 concession outlets in operation - sales growth of 60% over the last
     12 months
   • Acquisition of Spanish model rail group Electrotren completed
   • Italian court ruling in favour of Lima acquisition
   • Successful launch of new Scalextric Digital track system
   • New Ferrari Scalextric license agreed
   • Interim dividend up 25% to 2.0p (2003: 1.6p)

Frank Martin, Chief Executive of Hornby, said,

' We continue to make encouraging progress. The group is now augmenting its
organic growth with acquisitions. We have completed the acquisition of Spanish
model train specialist Electrotren and we are delighted with how it has bedded
down and its subsequent performance.

' We have launched a number of new products which have been well received. Our
Scalextric Digital track takes slot-car racing to a new level of authenticity
and allows for real-life overtaking manoeuvres. Together with new ranges of both
classic and contemporary racing cars, the pipeline of new products is looking
good. We are also delighted to have secured a new licensing deal with Ferrari,
which we are confident will be well received by the market.

' Our model railway business is also making excellent progress. Live steam is
continuing to capture the imagination of a new sector of model-train enthusiasts
and we are expanding the range of locomotives featuring this technology.

' Looking to the future, we are optimistic that our products will continue their
appeal across a wide range of age groups. We have an exciting product
development programme and we are hopeful that subject to our successful detailed
due diligence, the acquisition of Lima will be completed before the end of the
financial year. We are confident that we will continue to drive the Group's
performance forward.'

                                     -ends-

Date: 12 November 2004
For further information contact:

Hornby Plc                                         City Profile Group
Frank Martin, Chief Executive                      Simon Courtenay
John Stansfield, Finance Director                  James Cooper
01843-233500                                       020-7448-3244
On 12 November: 020-7448-3244
Web: www.hornby.com
or: www.scalextric.com



CHAIRMAN'S REVIEW


The Group continues to make encouraging progress. During the first half of the
year sales have again increased for both Hornby and Scalextric brands. I am
pleased to report that half-year sales at £19.0m were 20% higher than for the
same period last year.

Profit before tax at £2.6m was 20% higher than for the same period last year.
Diluted earnings per share rose from 3.91p to 4.55p (adjusted for 5 for 1 share
split. See note 3).

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, and given the
encouraging trading performance in the first half, I am therefore pleased to
announce an interim dividend of 2.0p (2003 - 1.6p) per ordinary share, payable
on 28 January 2005 for those shareholders on the register as at 7 January 2005.

Operating Review

The encouraging performance of the past six months reflects positive
developments within the business.

On 31 March 2004 we acquired Electrotren S.A., the market leader for model
railway products in Spain. We are pleased with the performance of Electrotren
and it has bedded down well as part of the Group. This subsidiary therefore
contributes to results for the first time at this interim.

Group like-for-like sales and profit before tax each increased by 14% in the
first half.

Sales of Hornby railway products increased again during the first six months,
buoyed by an enlarged range of Live Steam locomotives and additional liveries of
our Q1 and Class 50 locomotives. During the second half of the current financial
year we expect to see strong sales of the retooled A4 locomotive and the new
range of 'Teak' coaches.

Scalextric sales also increased, supported by the introduction of the MotoGP
motorbikes and sets. During the second half of the current financial year we
expect to experience strong demand for the newly introduced Scalextric Digital
system.

I am also delighted to announce that a number of new licences have been agreed
which we believe will underpin further growth in Scalextric sales in future
financial years. Most notable amongst these licences are the rights to produce
Scalextric models based on Ferrari road and competition cars, including Formula 
1.

Sales growth in the UK during the first half of the year has come from all our
channels of distribution. In particular, in-store concessions in the UK have
shown impressive sales growth of 60%. Between 30 September 2003 and 30 September
2004, the number of these outlets grew from 70 to 121.

Export markets continue to offer significant scope for growth, although some
markets, notably North America, have experienced difficult trading conditions
during the past six months. Nevertheless International sales have also increased
during this period.

The Company has continued to benefit from the relative strength of Sterling
against the Hong Kong Dollar, the currency in which the majority of our products
are purchased. It is the Company's policy to maintain a prudent level of forward
currency purchases in order to smooth the impact of fluctuations in exchange
rates. Forward purchases of Hong Kong Dollars are now sufficient to meet the
Company's purchasing requirements beyond the end of the current financial year.

The Company's net cash position, £0.1m overdraft as at 30 September 2004, has
reduced by £3.3m compared to the previous year. However this position is after
payment for Electrotren of £5.3m. The Company therefore continues to demonstrate
its ability to generate significant positive cash flow from its operations.

Acquisitions

The Company continues in its negotiations to acquire certain assets of Lima
S.p.A. (In liquidation), and expects to complete this transaction by the end of
the current financial year.

Current Trading

Your Company has again made a strong start in the current financial year and the
prospects for the full year remain positive. However, as always, the
pre-Christmas trading period is the key part of the year's trading. Improved
distribution and exciting new product introductions should ensure continued
growth during the second half of the financial year.

Neil A Johnson

12 November 2004


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2004

                                     Six months         Six months    Year ended
                                to 30 September    to 30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)
                                          £'000              £'000         £'000

TURNOVER                                 18,970             15,793        38,970
Operating costs                         (16,287)           (13,632)      (32,607)
                                        _______            _______       _______
OPERATING PROFIT                          2,683              2,161         6,363
Net interest (payable)/receivable           (48)                45           106
                                        _______            _______       _______
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                           2,635              2,206         6,469
Tax on profit on ordinary activities       (867)              (707)       (1,974)
                                        _______            _______       _______
PROFIT FOR THE PERIOD                     1,768              1,499         4,495
Dividends                                  (729)              (577)       (2,199)
                                        _______            _______       _______
RETAINED PROFIT FOR THE PERIOD            1,039                922         2,296
                                        _______            _______       _______

EARNINGS PER ORDINARY SHARE
Basic                                      4.77p              4.08p        12.20p    
Diluted                                    4.55p              3.91p        11.64p

Dividend per ordinary share                 2.0p               1.6p          6.0p

All the activities of the Group are continuing.

STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES

                                          £'000              £'000         £'000

Profit for the financial period           1,768              1,499         4,495
Exchange adjustments offset in reserves      41                (12)          (33)
                                        _______            _______       _______
TOTAL RECOGNISED GAINS FOR THE PERIOD     1,809              1,487         4,462
                                        =======            =======       =======


CONSOLIDATED BALANCE SHEET
as at 30 September 2004

                                   30 September       30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)

                                          £'000              £'000         £'000
FIXED ASSETS
Intangible assets                         4,016                 30         4,017
Tangible assets                           4,559              3,502         4,436
                                        _______            _______       _______
                                          8,575              3,532         8,453

CURRENT ASSETS
Stocks                                    9,398              8,539         7,369
Debtors                                  11,561              9,573         6,217
Cash at bank and in hand                    317              3,148         5,806
                                        _______            _______       _______
                                         21,276             21,260        19,392

CREDITORS: Amounts falling due
           within one year              (10,811)            (8,300)       (9,886)
                                        _______            _______       _______
NET CURRENT ASSETS                       10,465             12,960         9,506
                                        _______            _______       _______

TOTAL ASSETS LESS
CURRENT LIABILITIES                      19,040             16,492        17,959

CREDITORS: Amounts falling due
           after more than one year         (92)               (49)         (103)

PROVISIONS FOR LIABILITIES
AND CHARGES                                (686)              (538)         (527)
                                        _______            _______       _______
NET ASSETS                               18,262             15,905        17,329
                                        =======            =======       =======

CAPITAL AND RESERVES
Share capital and reserves                7,726              7,605         7,667
Profit and loss account                  10,536              8,300         9,662
                                        _______            _______       _______
EQUITY SHAREHOLDERS' FUNDS               18,262             15,905        17,329
                                        =======            =======       =======


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                   30 September       30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)

                                          £'000              £'000         £'000

Profit for the financial period           1,768              1,499         4,495
Dividends                                  (729)              (577)       (2,199)
Exchange profit/(loss) on investment         41                (12)          (33)
Shares issued                                67                 33           104
Investments - Short Term Incentive Plan    (214)                 -          (224)
                                        _______            _______       _______
NET ADDITIONS TO SHAREHOLDERS' FUNDS        933                943         2,143

Opening shareholders' funds              17,329             15,378        15,186
                                        _______            _______       _______
CLOSING SHAREHOLDERS' FUNDS              18,262             16,321        17,329
                                        =======            =======       =======


CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2004

                                     Six months         Six months    Year ended
                                to 30 September    to 30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)

                                          £'000              £'000         £'000
Net cash (outflow)/inflow from
operating activities                     (1,609)            (1,772)        8,210

Returns on investments and
 servicing of finance                       (48)                45           106
Taxation                                 (1,354)              (914)       (1,864)
Capital expenditure and financial investment
 - purchase of fixed assets              (1,107)              (546)       (1,370)
 - sale of fixed assets                      13                 13            27
 - purchase of own shares                  (278)              (224)         (224)
Acquisitions
 - purchase of subsidiary undertakings        -                  -        (5,303)
 - cash held upon acquisition                 -                  -           222
Equity dividends paid                    (1,612)            (1,383)       (1,968)
                                        _______            _______       _______
Net cash outflow
before financing                         (5,995)            (4,781)       (2,164)

Financing
Issue of ordinary shares                     67                 33           104
Capital element of finance lease payments   (16)                (7)          (26)
                                        _______            _______       _______
Decrease in cash in the period           (5,944)            (4,755)       (2,086)
                                        =======            =======       =======


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                          £'000              £'000         £'000

Decrease in cash in the period           (5,944)            (4,755)       (2,086)
Cash outflow from decrease in
 lease financing                             16                  7            26
                                        _______            _______       _______
Change in net funds
 resulting from cash flows               (5,928)            (4,748)       (2,060)
New finance leases                            -                (38)         (105)
New finance leases upon acquisition           -                  -           (12)
Exchange movements                            2                 (6)          (17)
                                        _______            _______       _______
Movement in net funds in the period      (5,926)            (4,792)       (2,194)
Net funds at 1 April 2004                 5,673              7,867         7,867
                                        _______            _______       _______
Net funds at 30 September 2004             (253)             3,075         5,673
                                        =======            =======       =======


NOTES TO THE CASH FLOW STATEMENT
Net cash flow from operating activities

                                     Six months         Six months    Year ended
                                to 30 September    to 30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)

                                          £'000              £'000         £'000

Operating profit                          2,683              2,161         6,363
Depreciation charges                        927                679         1,364
Amortisation of goodwill                      1                  1             3
(Profit)/loss on sale of
  tangible fixed assets                      (7)                (1)            2
Increase in stocks                       (2,029)            (2,389)         (830)
Increase in debtors                      (5,285)            (4,351)         (401)
Increase in creditors                     1,942              2,087         1,659
Increase in sales returns provision         159                 41            50
                                        _______            _______       _______
Net cash (outflow)/inflow from
 operating activities                    (1,609)            (1,772)        8,210
                                        =======            =======       =======


GEOGRAPHICAL SEGMENT INFORMATION

                                     Six months         Six months    Year ended
                                to 30 September    to 30 September      31 March
                                           2004               2003          2004
                                    (unaudited)        (unaudited)     (audited)

BY ORIGIN                                 £'000              £'000         £'000

TURNOVER
United Kingdom                           16,643             14,415        36,028
Spain                                     1,333                  -             -
United States of America                    994              1,378         2,942
                                        _______            _______       _______
Group                                    18,970             15,793        38,970
                                        =======            =======       =======

                                          £'000              £'000         £'000
PROFIT BEFORE TAX
United Kingdom                            2,385              2,160         6,399
Spain                                       336                  -             -
United States of America                    (86)                46            70
                                        _______            _______       _______
Group                                     2,635              2,206         6,469
                                        =======            =======       =======

                                          £'000              £'000         £'000
NET ASSETS
United Kingdom                           16,438             15,651        15,762
Spain                                     1,626                  -         1,313
United States of America                    198                254           254
                                        _______            _______       _______
Group                                    18,262             15,905        17,329
                                        =======            =======       =======

BY DESTINATION                            £'000              £'000         £'000

TURNOVER
United Kingdom                           13,537             11,517        30,961
Rest of the world                         5,433              4,276         8,009
                                        _______            _______       _______
Group                                    18,970             15,793        38,970
                                        =======            =======       =======

NOTES:

1. Basis of preparation

The interim financial information has been prepared on the basis of accounting
policies set out in the Report & Accounts for the year ended 31 March 2004. The
taxation charge for the six months ended 30 September 2004 has been calculated
on the basis of the estimated tax rate for the twelve months ending 31 March
2005.

2. Non statutory accounts

These statements do not constitute statutory financial statements within the
meaning of Section 240 of the Companies Act 1985. The comparative figures for
the year ended 31 March 2004 are an abridged statement of the full financial
statements for that period which have been delivered to the Registrar of
Companies and on which the auditors made an unqualified report. No financial
statements will be filed for the six months ended 30 September 2004.

3. Share Split

At the 2004 Annual General Meeting an Ordinary Resolution was passed that with
effect from close of business on 30 July 2004 each of the issued and unissued
ordinary shares of 5p each in the capital of the Company were sub-divided into 5
ordinary shares of 1p each in the capital of the Company having the rights and
being subject to the restrictions set out in the Articles of Association of the
Company.

The prior year earnings per share and dividend per share have been adjusted to
reflect the 5 for 1 share split.

4. Earnings per share

The calculation of earnings per ordinary share is based on the profits after
taxation for the period of £1,768,000 (six months ended 30 September 2003 -
£1,499,000) and the weighted average number of ordinary shares in issue during
the period of 37,036,552 (six months ended 30 September 2003 - 36,761,870).

The calculation of diluted earnings per ordinary share is based on the weighted
average number of ordinary shares in issue as adjusted to assume conversion of
all dilutive potential ordinary shares, 38,860,832 (six months ended
30 September 2003- 38,358,185).

5. Short Term Incentive Plan

129,110 ordinary shares to the value of £278,000 were acquired by the Employee
Benefit Trust in June 2004 in accordance with the incentive plan, details of
which were included in the 2004 Annual Report and Accounts.

The Trust waives its right to dividends.

6. Interim Statement

Copies of this statement will be sent to all shareholders and are available from
the Company's registered office.


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