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Hornby Make a Profit


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If this has been reported elsewhere, then transfer it or whatever. Hornby has just made a profit of £300K in their last trading year, the first profit for 8 years or so. I hope we carry on with modelling eventhough we are coming out of lockdown bit by bit. Good news, eh?

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Heard this on the R4 this morning. Good news for modellers and Hornby, although I cannot recall buying anything myself from them recently.

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Good news.

I genuinely hope they continue well, but ...

 

I still won't buy anything directly from them, more as a matter of principle in view of their enforced tier system conditions which has complicated many collectors in the last few months.

 

Al.

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Posted (edited)
Quote

Thu 10 Jun 2021 07:00

RNS Number : 3531B

Hornby PLC

10 June 2021

 

10 June 2021

Hornby PLC

Hornby ANNOUNCES ANNUAL RESULTS

 

Hornby Plc ("Hornby" or the "Group"), the international models and collectibles group, today announces its results for the year ended 31 March 2021.

 

Highlights 2021

 

Revenue - £48.5m (2020: £37.8m)

Operating profit - £0.6m (2020: £(2.8)m loss)

Reported profit before taxation - £0.3m (2020: £(3.4)m loss)

Underlying1 profit before taxation - £1.5m (2020: £(3.2)m loss)

Reported profit after taxation - £1.4m (2020: £(3.4)m loss)

Reported profit per share - 0.82p (2020: (2.67)p loss)

Underlying2 basic profit per share - 1.36p (2020: (2.57)p basic loss)

Net cash - £4.7m (2020: £5.9m) (see note 28)

 

1      Underlying figures are before amortisation of intangibles (brand names and customer lists), and net unrealised foreign exchange movements on intercompany loans, share-based payments and exceptional items

2      Underlying basic profit per share is before amortisation of intangibles (brand names and customer lists), and net unrealised foreign exchange movements on intercompany loans, exceptional items and shared-based payments (see note 7).

 

 "In a year overshadowed by the global pandemic and the consequences of Brexit, our employees have restored pride and profitability to the company. Frank Hornby would be proud of his legacy.

We are all excited by the prospects for Hornby; we are heading in the right direction and the engine at the heart of the business is now firing on all cylinders.

Our world-renowned iconic brands have a fantastic pipeline of new products for the future. The excitement is Hornby!"

 

(Lyndon Davies, Chief Executive)

  

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. For further information contact:

 

 

Edited by JohnR
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Bet its all that steam punk stuff that has put them in profit.

 

or Airfix! just try and buy a kit of late! Military modelling is a little bit more table top, I have invested in a few aircraft principally with the lack of rail shows my bits buying has shrunk.

 

Compare military traders they have grasped e commerce. 

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30 minutes ago, adb968008 said:

Forgive me being underwhelmed at those numbers.


 

 

 

 

 

 

A modest profit is still better than yet another massive loss though - particularly given the amount of debit Hornby have on their books.

 

Whether it will continue to improve is of course open to question

Edited by phil-b259
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What's impressive about Hornby's results is their sales growth in contrast to Kader/Bachmann's sales decline. That company still remains loss-making but I appreciate it also has manufacturing and small property arms.

Quote

Kader Holdings 2020 Annual Account The keen competition, the outbreak and spreading of the COVID-19, and the United States and China tension have notable effects on the Group’s performance for 2020. The Group believes that it will take some time for the economy to recover. To cope with the unfavourable conditions, the Group will diversify its businesses, implement various measures to increase efficiency and strengthen the cost control measures.

Toys and Model Trains For the financial year ended 31 December 2020, the revenue was approximately HK$327.98 million, [about £30m] representing a decrease of approximately 18.78% as compared to last year. The Group will continue to explore new sales opportunities and manufacture high quality products with competitive prices to sustain its business.

https://www.kader.com.hk/investor_relations/financial_reports.html

 

On another note, tucked away in Section 11 of Hornby's results is a snippett about the results from 49%-owned associate company LCD (Oxford Diecast incl Oxford Rail).

It shows revenues for year ending 31 March 2021 fell  27%to £2.2m from £3.0m whilst profit after tax rose more than 200% to £223k from £70k.

https://polaris.brighterir.com/public/Hornby/news/rns/story/w047m8x

Edited by 1andrew1
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4 hours ago, MikeParkin65 said:

 My wife, without even looking up said 'No surprise the amount of parcels you've been sneaking in!' :)

 

More accurately, the parcels that you thought you were sneaking in,

 

In my retail days, I had many customers who would ask for their parcels to be delivered to a friend.

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“Annual income twenty pounds, annual expenditure nineteen nineteen and six , result happiness.
Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery”


― Charles Dickens, David Copperfield

 

Brit15

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Sorry to be a bit negative but it is good that they made a profit, trouble is £300k is not a great deal. It is a lot better than making a loss, but I expect the investment they will continually need will wipe that out quite quickly. On another thread I quoted that the figures need to be related to a percentage of overall turnover, to get an appreciation of how good it is.

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1 hour ago, Joseph_Pestell said:

 

More accurately, the parcels that you thought you were sneaking in,

 

In my retail days, I had many customers who would ask for their parcels to be delivered to a friend.

In case my wife rings when I'm in my local model shop, the manager there has created a special sound file to make it sound like I'm down the pub! :mocking_mini:

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1 hour ago, cbrooks122000 said:

Sorry to be a bit negative but it is good that they made a profit, trouble is £300k is not a great deal. It is a lot better than making a loss, but I expect the investment they will continually need will wipe that out quite quickly. On another thread I quoted that the figures need to be related to a percentage of overall turnover, to get an appreciation of how good it is.

Agreed. That's why they need to increase sales to about £60m and keep fixed costs as they are. That's when you will start to get a profit of 5%+ of turnover. The EU and US operations are currently loss-making so they definitely need to sell more in these territories to make them profitable. 

Edited by 1andrew1
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11 hours ago, friscopete said:

I think the industry needs Hornby rather more than its detractors.


Not so  sure about that. After all what is Hornby but a commissioner of models with a famous name . The name would live on as another commissioner would buy it. In fact you could claim it had happened already , the original Hornby being subsumed by Tri-ang which is the real basis of today’s Hornby .

 

My previous post , congratulating them , was being a tad ironic . Of course it’s good they made a profit , but £300k on a turnover of £48m , pretty poor . And it took a pandemic to get the sales up . We all hope that that’s a once in a lifetime event . A 28% increase in sales and they can only scrape a small profit I’m afraid says more than the actual £300k profit. This is not a sustainable business model  and I think that’s what’s behind recent decisions  

 

They are simply not making enough so they need the retailers as well as their own margin. There was this successful  business in Liverpool that was grabbing a lot of their business and shock horror was discounting too . Suppose we knock them out of the game, as nicely as possible , and get most of their business . To get the latest models we will gamble that people will order direct from us at full retail . That means we will make more money out of each model and we need it . 
 

I really  think that is their only way out of this . Ironically the previous management I think recognised this well ahead of the current lot.  What are they going to do this year/next when hopefully pandemic eases and their sales bonanza declines . It won’t take much of a drop,to plunge them into a loss .  That’s why they must change .

 

They must deliver product . Shipping difficulties are not unique to Hornby but their results are very vulnerable to it 
 

So well done Hornby on making a profit , but I think there are still a lot of issues to deal with , some of which are of current managements making . 

Edited by Legend
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Good for Hornby but they’re not out of the woods yet.  £300k after the most near perfect year imaginable for sales is not much, and as the lockdowns ease trading conditions will normalise.  

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