REG - Hornby PLC - Trading Statement

HornbyAnnouncement

10/01/2023 07:00

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RNS Number : 1576M  Hornby PLC  10 January 2023

Hornby Plc ("Hornby" or "the Group")

Trading Update

Hornby Plc, the international models and collectibles Group, is today updating
shareholders on trading for the period from 1 October 2022 to 31 December
2022.

Business Performance

Group sales for the third quarter covering the key Christmas trading period
were ahead of the same period last year. As a result, cumulative group sales
for the financial year to date are ahead of last year by 6%. This has been
driven by better availability of stock, price increases, and investment in
e-commerce platforms and digital media. However, these sales figures are
behind budget due to the challenging consumer economic climate and will impact
our full year figures. Order book remains strong ahead of our 2023 product
range releases.

Our direct to consumer sales continue to increase and are 44% ahead of the
same period last year.

Financial Position

Net debt at the end of December 2022 was £7.6 million compared to net debt
£4.9 million at the end of September 2022. The Group retains a strong funding
position with significant liquidity headroom available against its existing
facilities

Outlook

We remain cautious in our outlook for the full year and beyond due to a high
level of uncertainty around the impact of several factors on our sales such as
inflation and mortgage costs for consumers but with employment expected to
remain high we are hopeful that the confidence in consumer spending remains.

We are excited about the Group's 2023 product range which launches today. In
particular the Group is launching this month a new control system for trains
utilising Bluetooth® technology to connect to phones or tablets, which will
replace traditional systems in the market.

Our current forecast to year end March 2022 is a modest underlying loss before
tax.

 

Executive Chairman, Lyndon Davies commented:

"Sales at Hornby continue to grow with a stream of new products in the
pipeline. We look forward to the continued growth in direct relationships with
our customers."

Hornby will announce its preliminary results for the year ended 31 March 2023
in June.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019.

-ends-

 

Enquiries:

 

Hornby plc

Lyndon Davies, Exec
Chairman
01843 233 500

Kirstie Gould, CFO

 

Liberum Capital Limited, Nominated Advisor and Broker

Andrew Godber
 
020 3100 2222

Edward Thomas

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