Model railroad maker Hornby announced higher losses and declined to provide estimates for the full year, but it is well prepared for the critical Christmas season as supply chain problems ease. said.
T.The group reported a pre-tax loss of £2.9m in the six months to 30 September in its previous ‘difficult’ financial year, compared to a loss of £700,000 in the previous year.
Hornby was out of stock last Christmas due to shipping delays due to widespread supply chain issues.
However, he said he is now in a “stronger position” as shipments from overseas factories have increased by 40% from last year and he is securing inventory early to avoid shortages.
But the group declined to give full-year projections, saying the results were “difficult to say” due to pressure on consumer spending during the critical Christmas period amid the cost of living crisis.
As we enter the critical Christmas sales season, it is not yet known what the full year results will be.Lyndon Davis Hornby
Lyndon Davis, Chairman of Hornby’s Board of Directors, said:
“It has been more than 40 years since Britain last experienced an inflation shock of the scale we see today. I was doing it today.”
A year ago, sales in the second half of the year were lowered due to supply chain issues.
As container prices continue to fall, Lyndon said, as costs won’t return to pre-Covid levels, the shipping industry is canceling flights and slashing capacity, causing the group to delay shipment departure dates. I said I still struggle with being there.
According to the company, “We have also reduced potential supply disruptions this Christmas by prioritizing ship dates for key product lines that are in stock.”
He added that the order book was “much stronger and louder than it was a year ago.”
Sales increased by 3% in the first half to £22.4m and direct sales from the website increased by more than 50% with further increases in the remaining six months.
Lyndon will soon take the reins to Paperchase boss Olly Rayburn and take over as managing director on January 23.
Lyndon will then assume the executive role and become non-executive chairman.
Author: Holly Williams, PA Business Editor
Source: Belfast Telegraph