Hornby derailed by supply issues

12th Nov 2010 08:27

Hornby made "encouraging progress" during the first half but ongoing supply problems continued to hamper the toy company that owns the Scalextric, Corgi and Airfix brands.Profit before tax for the six months ended 30 September fell to £528,000 from £743,000 in 2009 as product mix, market mix and the sale of goods bought the year before at less favourable exchange rates pressured operating margins.Turnover was up 2% though at £25.5m, but it could have been more as the group was unable to meet demand due to low inventories and delays to new products.But suppliers have taken steps to increase volumes and consumer demand is increasing.And sales in the UK jumped 12% as the new Scalextric Start range - selling for between £60 and £80 - exceeded expectations. "We have high hopes for this range over Christmas," Hornby said. "Ahead of the Christmas season, we are well placed," chief executive Frank Martin believes."Despite the economic conditions, the team is really excited about the prospects for the group."The interim dividend is restored after last year's break with a payout of 1.7p a share.