One to watch

HORNBY is best known for making its eponymous train sets, but also owns other toy brands including Scalextric, Airfix and Corgi.

Until recently, Hornby had been dogged by supply chain problems in China and the general economic malaise. Things seem to be improving: in its recent trading update, it said it was on track to make a pre-tax profit of about 5.7 million and will return to dividend lists for the first time in two years. This corporate forecast was rather better than the market had been expecting and was especially encouraged by reporting a better level of sales and improving margins.

The toy market is notoriously fickle, the competitive highly-seasonal Christmas period obviously extremely important. On the other hand, Hornby's range is much less cyclical than the passing fads that gain so much transitory publicity.

Instead, Hornby has a loyal following both among the young and their parents, the avid collectors; on this front the Corgi "Olympic Taxi" is already enjoying support in the run-up to the games in 2012.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Marks & Spencer

327.1p -0.6p

Broker says HOLD

AHEAD of next week's full-year results from Marks & Spencer, Execution Noble carries a "hold" rating on the retailer. Noble said: "Our surveys lead us to believe older homeowners are likely to be the most resilient over the next 12-18 months, so M&S may benefit from its core customer base."

Future

18.75p -0.5p

Broker says BUY

PUBLISHING house Future is "back on track" according to Numis, which has reiterated its "buy" recommendation and raised its target price from 28p to 30p. Following Thursday's interim results – which were "well ahead of expectations" – the broker added: "We view Future as materially undervalued, especially given the more than 5 per cent yield."