Hornby shares hit the buffers after £6m loss

Hornby shares fell more than 15 per cent after it swung to a loss.

The maker of model trains posted a £5.9million loss for the 12 months ended March 31 2023 as the consumer downturn hit business.

The crucial Christmas period failed to live up to expectations, investors were told.

Hornby closed the year with £21.3million in stock, up 29 per cent, and as a result debt levels swelled from £0.3million to £6.9million.

And as chairman Lyndon Davies noted: ‘These increased stocks put a squeeze on cash.’

The company is targeting single-digit-to-low double-digit revenue growth in the year ahead.

Sir Rod Stewart in 2019 revealed his own model railway set, which he spent 26 years making.

Other famous enthusiasts include Tom Hanks, Jools Holland and broadcaster Anne Diamond.

But it did not help the business, which said: ‘The year started well, but in the most important trading period October-December the sales were very disappointing and did not hit the levels that had been forecast just a few months earlier.’

Shares fell 15.6 per cent, or 3.5p, to 19p.