Hornby boosts manufacturing supply and looks forward to Christmas

Chief executive Frank Martin (pictured) said that demand for the company's core ranges of model railways, Scalextric, Airfix and Corgi remained strong and all the brands were performing well. He went on: "Hornby is in good financial health and we are pleased that our suppliers have taken steps to increase volumes. In addition, we have continued our strategy to diversify our supplier base. We have brought on stream a significant additional source of model railway manufacturing, thus further reducing our dependency on our largest supplier. Hornby manufactures its UK designed products in China and has been working on resolving production problems with its main supplier for some time. Announcing its half year results for the six months ended 30 September, Hornby reported turnover up 2% to £25.5 million while pre-tax profit dipped to £0.5 million (£0.7 million 30 September 2009). Other highlights of the half year included a distribution partnership agreed with The Royal Mint and the opening of a Hornby Heritage Visitor Centre in Kent. Martin said Hornby was delighted there was strong interest in its London 2012 Olympic ranges and that the company's involvement in London 2012 hadresulted in the "landmark" distribution agreement with The Royal Mint. Under the agreement, Hornby will distribute The Royal Mint range of London 2012 sports collectable coins via its mass market and hobby retailers. "We expect that this agreement will form the basis of a long term relationship between Hornby and The Royal Mint," Martin said. "Ahead of the Christmas season, we are well placed. We have strong retail relationships and our product ranges appeal to a wide cross section of hobbyists and enthusiasts. Despite the economic conditions, the team is really excited about the prospects for the Group. We are confident that, from here, we can drive the performance of the Group forward ."