Hornby shares surge as group returns to profit

Hornby shares (LON: HRN) were up 30% on Thursday after the group posted a 33% increase in revenue.

The model railway company returned to a profit of £200,000 for the first time in almost ten years of losses.

“Hornby has moved into profitability, the growing sales and margins built on the back of the introduction of some fantastic new products, new technology and the changing environment,” said Lyndon Davies, the group’s chief executive.

“We are heading into our key Christmas trading period and right now it is hard to tell what the outcome will be for the full year results. Our sales continue to be higher than where they were last year, and there is a real energy within the Company for the Christmas season.”

Hornby saw an increase of online sales at the half-year point and had exceeded the sales levels through this channel than it had achieved in the entire 2019-20 financial year thanks to families staying at home and using products.

The group is selling in over 50 markets worldwide, with over 37% of sales in the first six months of 2020 being outside of the UK.

“We are heading into our key Christmas trading period and right now it is hard to tell what the outcome will be for the full year results. Our sales continue to be higher than where they were last year, and there is a real energy within the Company for the Christmas season,” said the group in a statement.

Horby shares (LON: HRN) have surged 30.59% on Thursday to 44,40 (1601GMT). 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.