Hornby Plc ("Hornby" or "the
Group")
Trading Update
Hornby Plc, the international models
and collectibles Group, is today updating shareholders on trading
for its 4th quarter and the year ended 31
March 2024.
Business
Performance
Group sales for the
4th quarter were 8% less than the same period last
year due to Easter falling earlier, Red Sea delivery delays and the
resultant movement of some high value containers into April instead
of March.
Therefore, Group sales for the
financial year ended 31 March 2024 were £56.2 million,
only marginally ahead of the prior year at 2%. Margins are slightly
behind due to higher tooling amortisation than in prior years,
although we have seen a modest improvement in margins in the second
half of the year.
The Group's direct-to-consumer sales
continue to increase strongly, at 18% ahead of last year, and our
overall performance continues on the positive growth trajectory of
recent years.
Our underlying loss before tax has
weakened since the half-year point. Nonetheless, this still
represents a slight improvement in H2 profitability compared to the
previous year, despite facing higher interest rate charges on
borrowings and increased tooling amortisation from prior year's
tooling purchases now in production. The result for the year is in
line with our expectations.
Financial Position
Net debt as at 31 March
2024 was £14.3 million compared to net debt
of £5.5 million at the end of March 2023 mainly
due to the trading loss and capital expenditure. This does,
however, show a slight improvement from £14.6M at the half year.
Stock has reduced by 12%, or £3 million, since the half year, and
is slightly lower than March 2023.
Outlook
Whilst we close the year in a
loss-making position and both net debt and inventory are still too
high, we have seen a marked change in trajectory since the half
year and aim to continue this positive improvement throughout the
current financial year.
We have invested in new Sales and
Marketing teams, along with adding Research, Data and Loyalty
capabilities, which we expect to start improving our revenue and
margins positively this financial year through the identification
of new customers, opening up of new territories and launch of new
product ranges.
We do, however, remain cautious in
our outlook due to the natural challenges facing a business in
turnaround, and the uncertainty of the wider economic and
socio-political factors affecting all businesses at this
time.
Hornby will announce its preliminary
results for the year ended 31 March 2024 in
June.
Enquiries:
Hornby PLC
Olly Raeburn, CEO 01843 233
500
Kirstie Gould,
CFO
Holly Barnett,
PR
Liberum Capital Limited, Nominated Advisor and
Broker
Andrew Godber 020 3100
2222
Edward Thomas
Anake Singh
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