LONDON - Hornby Plc, an international models and collectibles group, provided an update today on its performance for the third quarter, which ended on December 31, 2024. The company reported a 7% increase in group sales compared to the same period last year, excluding the impact of the recently sold LCD Enterprises Limited. This performance contrasts with a general 1.5% decline in UK non-food sales, as reported by the British Retail Consortium for the same period.
For the financial year to date, Hornby's sales are up by 8%, and gross profits have risen by 10%. A significant contribution to this growth was the month of December, which saw a 23% revenue increase and a 38% gross profit boost compared to the previous year. Hornby attributes this success to a strong Black Friday and Christmas campaign, noting that nearly half of all Black Friday transactions were from first-time customers.
Direct-to-consumer sales have also risen by 10% year-over-year, and the company has seen an improvement in margins, which were up to 48% from 44% in the previous year. This increase is partly due to more full-price sales and a rise in direct-to-consumer activities.
Hornby's financial position has also shown signs of improvement, with a slight reduction in net debt, which stood at £18.2 million at the end of December, down from £18.8 million at the end of September. Inventory levels have decreased by nearly 23% since March 2024, following efforts to reduce aged stock and the sale of LCD Enterprises Limited.
CEO Olly Raeburn expressed satisfaction with the company's performance in a challenging economic environment, highlighting growth in key financial metrics and the continued execution of turnaround initiatives. Raeburn emphasized the reduction of inventory levels and central costs, focusing on core brands, and improving operational processes as part of the company's steady progress.
Hornby anticipates year-on-year growth for the fiscal year ending in March 2025 and plans to announce its preliminary results for the year in June. This trading update is based on a press release statement provided by RNS, the news service of the London Stock Exchange (LON:LSEG).
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