Exchange rate loss derails Hornby results

8th Apr 2014 07:13

- Exchange rate loss to lead to an overall 1.2m pound loss - Trading, on an operating level, in line - Eyes improved trading next yearModel railway and Scalextric car maker Hornby warned that a 0.2m pound exchange rate loss will lead to a 1.2m pound loss overall, but on an operating basis it traded in line with its own expectations during the last quarter.The group said it expects to deliver a performance for the year around breakeven at the underlying pre-tax level as indicated in the last trading update. Hornby said it is currently engaged with its main bankers for new banking facilities based on the operating plans for the next financial year. Talks are expected to be concluded by June.Net debt at the end of March 2014 is now expected to be around £7.3m compared to £6.5m at the end of December 2013 and £2.1m at March 31st 2013."The group's plans for the new financial year are well advanced and with the main obstacle to an improved and efficient supply chain out of the way, we expect a gradual improvement in its reliability and quality. As a result we look forward to improved trading next year," Hornby said in the company update. As announced previously, Richard Ames will join the group as Chief Executive later this month. CJ