Hornby warns over full-year profits as the toymaker's chairman stands down
HORNBY has again warned over full-year profits and the group's chairman is to quit as the model toymaker grapples with falling revenue.
Hornby has issued a new profit warning
The Scalextric-to-Airfix business confirmed that its performance for the year to date has been "below expectations", adding that, as part of a new strategy to maximise the value of its brands, Hornby will no longer sell large amounts of stock at a discount.
The company said in a statement: "This, coupled with the new approach to discounting stock, means it is now clear that the shortfall is unlikely to be recouped in the current year.
"It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year."
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It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year
New chief executive Lyndon Davies has been tasked with driving through the remaining stages of an overhaul.
Interim chairman David Adams has told the Hornby board he intends to step down to take up another post.
The latest Hornby news comes after Phoenix Asset Management increased its stake in the company to about 72 per cent earlier this year.
The firm's interim chairman is standing down
The company has reduced product ranges and cut back on investment as part of a turnaround initiative.