Hornby Plc, the international hobby products Group, today announces its interim results for the six months ended 30 September 2018.
Interim Results Highlights
- Group revenue of £13.8 million (2017: £17.0 million)
- Underlying Group loss before tax* of £3.0 million (2017: loss of £4.6 million)
- Statutory loss before taxation for the period of £3.2 million (2017: loss of £5.7 million)
- Net debt of £1.8 million (2017: £4.7 million)
* Stated before exceptional items.
Continued delivery of our plans to transform the Group
- A removal of the aggressive discounting strategy, favouring the long-term health of the brands over the short-term sales number
- Nearly 200 years of combined model and hobby experience added to the brand teams to optimise product selection and pricing architecture across the ranges
- Line plans for next year are now in place 6 months ahead of last year to give us the best chance of getting products to market in the right quantities at the right time
- A relentless focus on frugality, making sure we squeeze the maximum amount of benefit out of every penny of cost we incur
Lyndon Davies, Hornby Chief Executive, commented:
“Having slammed on the brakes as hard as we could to prevent further damage to the brands from discounting, the trust in the supply chain is starting to move in the right direction.
Perhaps most importantly, our loyal employees are beginning to believe in the business again. There are some incredible products in the pipeline that will finally get us back on the front foot and give us the ability to take back the market share that we have given away.
Motivation and alignment has been an issue in the past for the business, especially for staff below the board level who have not had their fair share of the rewards. As a result, I am proud to announce a profit share scheme for our employees. Employees at ALL levels who contribute to the success of the business will share in the rewards.
The scheme is one of the most generous you will find; and will see a one-off 5% bonus given for getting to break even and c.15% of operating profit shared between employees thereafter.
We want to attract the best talent, keep them and make sure they are aligned with shareholders’ interests. I think this scheme achieves that aim.”
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