Hornby gets back on track for Christmas as supply chain improves

The group – which owns a number of model railway and slot car brands, Airfix models, Humbrol paints and Corgi die cast models – said it had continued to experience disruption to supplies following the acquisition in January 2009 of its primary supplier, Sanda Kan, by Kader Holdings, a Hong Kong based company. However, it had now diversified its model railway manufacturing base to reduce dependence on a single source while, at the same time, establishing "an excellent relationship with Kader, such that both parties recognise the long term benefits of working closely together". Volume of shipments from China had been increasing on a weekly basis leaving Hornby well placed as it enters the Christmas trading period. Chief executive Frank Martin, said the business had been boosted by the supply chain improvements. " The Group has a broad portfolio of products selling in many different countries. We are delighted that sales are continuing to grow strongly in Europe. The model railway market continues to have excellent potential for growth. Our products remain popular with a wide appeal to all age groups. Airfix and Corgi are performing well and we are excited by the potential for these two iconic brands." The recent success of the Brawn Formula One team and Jenson Button's World Championship victory were expected to provide a significant boost to the sales of Scalextric and Micro Scalextric. Hornby holds the exclusive worldwide license to produce slot racing products featuring the Brawn team and Jenson Button. The first products carrying this license will be available in time for Christmas. " We have been awarded the licence to produce a wide range of merchandise across our brands for the London 2012 Olympics. The first product, a limited edition 'London – Beijing – London handover bus' (pictured) is now in the shops. We will be rolling out other collectible ranges during 2010," Martin added. In the half year to 30 September, turnover was up 5% to £25.5 million (2008: £24.2 million) generating pre-tax profits of £0.7 million (2008: £1.8 million).