REG - Hornby PLC - Trading Statement

HornbyAnnouncement

17/01/2024 07:00

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RNS Number : 8914Z  Hornby PLC  17 January 2024

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 2023 to 31 December
2023.

Business Performance

Group sales for the third quarter covering the third quarter to 31 December
2023 were 5% ahead of the same period last year. For context and comparison,
the British Retail Consortium reported UK non-food sales decreased by 1.5% on
a Total basis over the three months to December.

Cumulative group sales for the financial year to date are ahead of last year
by 6%.

A strong programme of activity around Black Friday contributed to 10% revenue
growth vs last year for the month of November. More than 50% of all Black
Friday transactions came from first time purchasers, demonstrating acquisition
of new customers to our brands in this key promotional period. Acquiring new
customers in these naturally buoyant trading periods is critical for feeding
our new CRM programme that drives further purchases over time and we have
already seen positive impact since launch in September.

Our direct to consumer sales continue to increase and are 30% ahead of the
same period last year.

Our margins for the quarter were 46%, up from 43.8% at the half year,
reflecting the increase in direct to consumer activities and the additional
full-price sales driven as a consequence of the uplift in web traffic.

Financial Position

Net debt at the end of December 2023 was £13.5 million compared to net
debt £14.6 million at the end of September 2023. The Group retains a
strong funding position with significant liquidity headroom available against
its existing facilities.

Inventory is £22 million, down from £24 million at the end of September 2023
as a consequence of our ongoing focus on reducing aged stock in tandem with
driving sales of newer product.

Outlook

Our current forecast to year end March 2024 remains on track for year on
year growth, and we continue to work on responsibly reducing the excessive,
historical, inventory position through the remainder of the year.

Olly Raeburn, CEO, commented:

"As outlined in our Interim results to end of September, this is a year of
significant strategic, structural and operational change, requiring investment
in many areas. We continue to make good progress on our key strategic
initiatives and look forward to a return to profitable growth in the next
financial year"

Hornby will announce its preliminary results for the year ended 31 March
2024 in June.

 

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