Friday preview: Hornby hopes to pick up steam

2nd Jun 2011 17:07

The brand names controlled by hobby products firm Hornby are enough to make men of a certain age go all misty eyed: as well as the eponymous trains sets, the company produces Scalextric racing sets, Airfix model kits and Corgi die-cast models.As one might expect, the crucial season for the company is Christmas, and last year Father Christmas's bag was not as stuffed full of Hornby products as anticipated."Retail customers experienced weaker sales than expected in the weeks immediately prior to Christmas. The major reason was the impact of the inclement weather, which led to sales to consumers being lower than expectations," the toy maker said in a company statement.Sales at its European subsidiaries, which were constrained by shortages of product due to supply chain issues, have been improving but sales in Europe prior to the end of the financial year will not recover the ground lost in the first half, the company said back in late January.Following that profits warning, analysts cut their profit forecasts for the year, leaving the consensus figure for pre-tax profit at £4.6m, down from £5.2m the year before. Sales are tipped to hold steady at around £65m.The good news for the company is that the 2012 Olympics represents a good selling opportunity for the company, with many tourists set to take home a special die-cast Olympic themed London taxi.The expected Olympic boost could account for why analysts expect profits for the current financial year to leap to £7.8m, on sales of £75m.On the economic front, the main focus in the morning will be on the services Purchasing Managers Index for May. Consensus is for a slight easing of the index to 54.2 from 54.3 in April, though a value above 50 still represents an expansion in activity. In the afternoon, the spotlight moves across the Atlantic to the eagerly awaited US non-farm payrolls figure. Consensus is for 175,000 jobs to be added in May, compared to April's rise of 244,000.INTERIMSRWS HoldingsINTERNATIONAL ECONOMIC ANNOUNCEMENTSPMI Service Sector Survey (08:50)PMI Composite (GER) (08:55)PMI Services (GER) (08:55)PMI Services (EU) (09:00)PMI Composite (EU) (09:00)Unemployment Rate (US) (13:30)Average Hourly Earnings (US) (13:30)Change in non-Farm Payrolls (13:30)ISM Non-Manufacturing (US) (15:00)ISM Services (US) (15:00)GMSChaucer HoldingsFINALSHornbyANNUAL REPORTNorthern Investors CoEGMSProsperity Voskhod Fund Ltd.AGMSDatang International Power Generation Co Ltd., Golden Prospect Precious Metals Ltd., Inde-pendent News & Media, JSC VTB Bank GDR (Reg S), Planet Payment Inc., Treveria, Verona PharmaUK ECONOMIC ANNOUNCEMENTSOfficial Reserves (09:30)PMI Composite (09:30)PMI Services (09:30)FINAL DIVIDEND PAYMENT DATEAcencia Debt Strategies Ltd., AG Barr, Aga Rangemaster Group, Cape, Cobham, Croda International, CSR, Downing Planned Exit VCT 8, Downing Planned Exit VCT 9, Elementis, Ferrexpo, G4S, Gresham House, Hardy Underwriting Bermuda Ltd. (DI), Hydrogen Group, InterContinental Hotels Group, Kentz Corporation Ltd., Laird, Neptune-Calculus Income & Growth VCT, RSA Insurance Group, SDL, Straight--jh