Bumpy ride for Hornby as Games souvenirs flop
Friday 07 June 2013
Hornby's profits were all but wiped out last year through overstocking London 2012 souvenirs and poor supplies of model trains.
Despite selling almost £5 million of Olympics-based products, the firm had to discount prices heavily as shops failed to re-order models.
That led to a loss of £1.3 million on what executive chairman Roger Canham admitted had been a "disappointing venture into London 2012 branded products". At the same time, Chinese manufacturers failed to supply as much as 30 per cent of the model trains ordered for Hornby's continental markets. Canham said the group has taken measures to spread its orders more widely.
Headline profits fell £4.5 million to just £150,000. After a £2.7 million writedown on the value of its Italian business and £700,000 costs of a management shake-up the pre-tax loss was £3.4 million. The dividend has been scrapped.
But Canham is optimistic that its Airfix Quickbuild kits, the relaunch of the £500-a-time Pocher Lamborghini model, and improving supply chains, give "a robust platform for future growth".
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Tommy Ramone dies: Last surviving founder and drummer seminal punk band The Ramones dies aged 62
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...