Future looks bright for Hornby models

COLLECTIBLES firm Hornby yesterday said its growth prospects were "significantly improved" as it signalled a major sales boost from products linked to Disney's latest Toy Story film and the London Olympics in 2012.

The London-listed group reported a 9 per cent drop in underlying profits for the year to 31 March, but it said the period finished in robust fashion as many UK retailers looked to restock after a strong Christmas trading period.

With its "formidable" portfolio of hobby brands – including Corgi, Airfix and Scalextric – Hornby said full-year sales rose by 5 per cent to 64.7 million and were expected to show a significant further increase this year.

The firm has reported strong interest in London 2012 ranges and predicted that products linked to the Olympic Games should offer a major boost to revenues in the financial years to March 2012 and 2013.

Prices will range from below 5 for Corgi vehicles to more than 100 for limited edition Hornby train sets. The company added that Hornby and Scalextric products linked to the Toy Story 3 film were expected to benefit sales in the current financial year.

While Hornby enjoyed a robust end to the financial year, difficult trading at the start of the period and the impact of the weak pound meant profits dropped to 5.7m from 6.3m a year earlier.

Chairman Neil Johnson said the group had emerged from a difficult trading period in sound financial health.

He added: "The board is pleased with the performance of the group which gives us renewed confidence for the future."