Hornby sees festive sales boost as the toy firm continues its financial recovery
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Hornby, the firm behind Scalextric and model trains, has reported a surge in sales following solid Christmas trading, as it continues its financial recovery with guidance from Frasers founder and billionaire Mike Ashley. Hornby revealed a 7% increase in sales for the crucial quarter ending December 31, with revenue growth of 23% for December alone. The company celebrated robust trade from first-time customers as its direct-to-consumer sales accelerated, with nearly half of all Black Friday sales coming from new customers, up from 42% the previous year.
The Margate-based company stated that the strong festive performance has boosted overall group sales by 8% for the financial year to date, with gross profits 10% higher. Shares rose 6% in Wednesday morning trading. In March, the company announced that Mr Ashley would provide advice to Hornby after acquiring an 8.9% stake in the model train specialist, making him its third largest shareholder. The toy company said the retail mogul "entered into a consultancy arrangement" as it sought a financial turnaround. It is hoped this move can trigger a financial revival at Hornby, which had seen losses increase.
Shares in the company fell to their lowest price for decades at the end of 2023 as a result. On Wednesday, Hornby confirmed its turnaround plan was "very much on track", stating that it remains on course for growth in the year to March 31. Chief executive Olly Raeburn stated: "In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter.
