REG - Hornby PLC - Trading Statement

HornbyAnnouncement

25/04/2023 07:00

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RNS Number : 3576X  Hornby PLC  25 April 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 4(th) quarter ending 31 March 2023.

Business Performance

After a 3(rd) quarter sales performance that fell short of expectations, Group
sales for the 4(th) quarter were more encouraging and ahead of the same period
last year.

The stronger close to the year, however, did not fully recover the shortfall
in performance in the 3(rd) quarter and, whilst Group sales and gross margins
for the financial year ended 31 March 2023 were ahead of the prior year, we
remained behind internal budgets for the full-year.

The Group's direct-to-consumer sales continue to increase strongly, at 49%
ahead of the same period last year, and our overall performance continues on
the positive growth trajectory of recent years.

We expect to report a modest underlying loss before tax this year on account
of increased overheads (in an inflationary environment) and as a result of
lower than anticipated sales versus budgets.

On 23 January 2023, Olly Raeburn started as CEO and Lyndon Davies became
Non-Executive Chairman.

Financial Position

Net debt as at 31 March 2023 was £5.8 million compared to net cash of £3.9
million at the end of March 2022 mainly due to the increased inventories at
year end and shortfall in sales.

More information will be included in the full year results announcement.

Outlook

We remain cautious in our outlook due to a level of uncertainty around the
impact of several factors on our sales such as inflation, mortgage increases
and the rising cost of living for all consumers.

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

 

-ends-

Enquiries:

 

Hornby plc

Olly Raeburn, CEO                         01843 233
500

Kirstie Gould, CFO

 

Liberum Capital Limited, Nominated Advisor and Broker

Andrew Godber
                020 3100 2222

Edward Thomas

 

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