17 January 2024 , 12:30
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Hornby, the maker of model trains, is seeing a boost in sales after a successful Black Friday.
This development has helped shares of the Margate-based company rise. The positive trend sets Hornby on a good path to profitability after experiencing a £5.9 million loss last year.
The company's profit margins have recently improved, credit goes to more direct consumer trading and full sales prices. As a result, Hornby reported a 5% increase in group sales for the quarter ending December 31, compared to the same period in 2022.
Not only did sales over the first nine months of this financial year go up by 6%, but their Black Friday performance was also "strong", contributing to a 10% year-on-year increase for November. In another piece of good news, the company sliced its debt load. Net debt as of December stood at £13.5 million, down from £14.6 million in September.
Olly Raeburn, boss of Hornby, said: "As outlined in our interim results to the end of September, this is a year of significant strategic, structural and operational change, requiring investment in many areas. We continue to make good progress on our key strategic initiatives and look forward to a return to profitable growth in the next financial year."
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This news comes as the model railway industry faces wider pressures, with Widnes-based Hattons Model Railways announcing earlier this month that it will stop trading after 77 years. On Wednesday morning, Hornby's shares were up by 3.2% at 16p.
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