Hornby unveils annual loss

7th Jun 2013 08:07

Hobby products group Hornby reported an annual loss following a drop in annual turnover, disruptions to the supply chain and weak trading conditions in the UK and Europe.The company posted an loss before tax of £3.4 for the year ended March 31st, compared to a pre-tax profit of £4.0m a year earlier, following adjustment for amortisation of intangibles, net foreign exchange adjustments on inter-company loans, restructuring costs and impairment of goodwill.Turnover dropped to £57.4m from £64.4m, while the profit margin declined to 42.6% from 48.3%.The firm said supply shortages of products weighed on the company's results. "The economics of sourcing our products from China continue to be affected by reducing availability of labour and increasing costs," said Chairman, Roger Canham.He said Hornby was working hard to improve its supply chain. The group is moving some of its manufacturing from China to India."I'm encouraged with the progress we have made, and we have continued to broaden the range of suppliers that we work with," Carnham said. In a milestone for the year, the company launched its new product range of aircraft model planes, Airfix Quickbuild. They also launched Hornby E- Link and a Railmaster app, which allows users to control a model railway on their PC.Net debt reduced to £2.1m from £6.3m.Shares fell 2.50% to 78p at 08:40 Friday.RD