Hornby PLC (HRN.LN) on Tuesday warned that current sales are lower than expected and posted a widened pretax loss for fiscal 2018 on the back of falling revenue.
The international hobby products group, which houses its namesake Hornby train sets and Scalextric race tracks and cars, said sales for the ten weeks to June 8 fell short of expectations. The company said it took a hit from insufficient tooling investment coupled with the late placing of purchase orders with suppliers. Hornby also said it has a backlog of stock that will take some time to work through.
In the year ended March 31, Hornby’s pretax loss widened to 10.1 million pounds ($13.3 million) from a loss of GBP9.5 million, the company said. On an underlying basis–excluding amortization of intangibles, foreign-exchange movements and exceptional items–the company’s pretax loss widened to GBP7.6 million from GBP6.3 million.
Full-year revenue fell 25% to GBP35.7 million from GBP46.4 million in fiscal 2017, the company said.
"Tough decisions have now been taken and we are currently laying down the foundations for our future success," Hornby Chief Executive and Interim Chairman Lyndon Davies said.