REG - Hornby PLC - Trading Statement

HornbyAnnouncement

08/01/2025 07:00

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RNS Number : 4458S  Hornby PLC  08 January 2025

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 2024 to 31 December
2024.

Business Performance

Group sales for the third quarter to 31 December 2024 were 7% ahead of the
same period last year on a continuing operations basis (excluding LCD
Enterprises Limited which was sold on 30 November 2024). For context and
comparison, the British Retail Consortium reported UK non-food sales decreased
by 1.5% versus previous year for the three months to 31 December.

Group sales for the financial year to date are 8% ahead of last year, and
gross profits are ahead by 10%.

A strong programme of activity around Black Friday and Christmas contributed
to 23% revenue growth and 38% gross profit growth versus last year for the
month of December. Almost 50% of all Black Friday transactions came from first
time customers, up from 42% in 2023, demonstrating improved 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 CRM strategy that drives further purchases over time.

Our direct-to-consumer sales continue to increase steadily and are 10% ahead
versus the same period last year.

Our margins for the quarter were 48%, up from 44% in the same period in 2023,
reflecting both the increase in direct-to-consumer activities and the
additional full-price sales.

Financial Position

Net debt marginally reduced in the quarter and was at £18.2 million by the
end of December, compared to net debt £18.8 million at the end
of September 2024.

Inventory at £16.6 million, is almost 23% down from £21.5 million at the end
of March 2024 as a consequence of our ongoing focus on reducing aged stock, in
tandem with driving sales of newer product and the sale of LCD Enterprises
Limited in November 2024.

Outlook

Our current forecast to year end March 2025 remains on track for
year-on-year growth, and we continue to work on many of the turnaround
initiatives outlined in the Annual Report and our Interim Results.

Olly Raeburn, CEO, commented:

"In a tough economic climate, we are pleased to be able to report growth in
revenue, margins and gross profits through this critical quarter. Concurrently
we are continuing to drive down the inventory levels that had built up in
recent years and are delivering our change plans in a steady and sustainable
way. Our turnaround is very much on track as we further reduce central costs,
focus on our core brands and improve operational processes across the
business."

Hornby will announce its preliminary results for the year ended 31 March
2025 in June.

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