Hornby sales, profits ‘slightly behind’ internal forecasts due to shipping delays

Model train set maker Hornby fell on Wednesday as it reported a jump in sales and profits but said its performance was below internal forecasts due to shipping delays.

In an update for the period from 1 April to the end of August ahead of its annual meeting, Hornby said sales and gross profits have been 10% higher than the previous year, "although slightly behind internal forecasts due to timing issues driven by shipping delays".

It said that as is the case in its industry, the full-year performance is subject to the sales rate in the run-up to the key Christmas trading period.

Hornby said its outstanding order book is "strong", with new products still to be released. In addition, D2C invoiced sales are up 11% on prior year and 56% on the same period in 2022.

"Solid progress has been made on many of the strategic initiatives set out in our most recent Annual Report and whilst inventory levels remain high on account of planned stock build ahead of peak, total stock holding is 7% lower than the same time last year," it said.

"Inventory is expected to unwind further over the key Christmas trading period and our expectations for the full year are unchanged."

At 0940 BST, the shares were down 4.3% at 20.10p.