Hornby Plc, the international models and collectibles Group, today announces its results for the year ended 31 March 2018.
- Revenue of £35.7 million (2017: £47.4 million)
- Reported loss before tax £10.1 million (2017: £9.5 million loss)
- Underlying1 loss before tax of £7.6 million (2017: £6.3 million loss)
- Reported loss after tax £9.9 million (2017: £9.7 million loss)
- Exceptional items of £2.3 million (2017: £3.3 million) including costs relating to the restructuring of the business and refinancing in 2017
- Net cash at 31 March 2018: £3.9 million (2017: £1.5 million)
1 Underlying figures are before amortisation of intangibles (brand names and customer lists), and net unrealised foreign exchange movements on intercompany loans and exceptional items
Group Sales for the 10 weeks to 8 June 2018 are lower than we expected. This is due to the ongoing impact of insufficient investment in tooling in the past, coupled with late placing of purchase orders with suppliers. There is also a backlog of stock at our retailers from previous decisions to bring sales forward by discounting, which will take time to work through.
Despite these difficulties, gross margin for the Group for the 10 weeks to 8 June 2018 was 5 percentage points higher compared with the same period last year, reflecting the absence of discounting initiatives since October 2017.
Lyndon Davies, Hornby Chief Executive Officer and Interim Chairman, said: “In the first seven months that I have been at Hornby, we have assessed our position and confronted the reality of the situation in which we find ourselves. Tough decisions have now been taken and we are currently laying down the foundations for our future success. There is a new energy in the business and I am excited with our plans as we re-engage across both domestic and international markets with these well-loved brands.”