[24th June 2023] Hornby has announced a pre-tax loss of £5.9 million for the financial year ending on March 31st 2023.
The loss is in contrast to the previous year’s pre-tax profit of £583,000. The company attributes the decline to increased selling and marketing costs, amounting to £11.4 million, which grew 30 per cent compared to the previous year. Additionally, distribution costs rose by 17 per cent to reach £8.2 million.
While Hornby saw a modest revenue increase of 2.6 per cent, reaching £55.1 million compared to £53.7 million in the previous year, the company said that this fell approximately 10 per cent short of management’s expectations. The underperformance was primarily due to “disappointing sales” during the October-December period.
Shares fell 9.3 per cent, 20.40 pence, on Thursday morning as a result.
Despite the challenging results, Hornby remains optimistic about the future. The company stated that, with its current cost structure, it anticipates achieving higher revenue levels and aims to achieve high single-digit or low double-digit revenue growth in the upcoming year.