Hornby Plc ("Hornby" or "the
Group")
Trading Update
Hornby Plc, the international models
and collectibles Group, is today updating shareholders on trading
for the period from 1 October 2024 to 31
December 2024.
Business
Performance
Group sales for the third quarter to
31 December 2024 were 7% ahead of the same period last year on a
continuing operations basis (excluding LCD Enterprises Limited
which was sold on 30 November 2024). For context and comparison,
the British Retail Consortium reported UK non-food sales decreased
by 1.5% versus previous year for the three months to 31
December.
Group sales for the financial year
to date are 8% ahead of last year, and gross profits are ahead by
10%.
A strong programme of activity
around Black Friday and Christmas contributed to 23% revenue growth
and 38% gross profit growth versus last year for the month of
December. Almost 50% of all Black Friday transactions came from
first time customers, up from 42% in 2023, demonstrating improved
acquisition of new customers to our brands in this key promotional
period. Acquiring new customers in these naturally buoyant trading
periods is critical for feeding our CRM strategy that drives
further purchases over time.
Our direct-to-consumer sales
continue to increase steadily and are 10% ahead versus the same
period last year.
Our margins for the quarter were
48%, up from 44% in the same period in 2023, reflecting both the
increase in direct-to-consumer activities and the additional
full-price sales.
Financial Position
Net debt marginally reduced in the
quarter and was at £18.2 million by the end of December,
compared to net debt £18.8 million at the end
of September 2024.
Inventory at £16.6 million, is
almost 23% down from £21.5 million at the end of March 2024 as a
consequence of our ongoing focus on reducing aged stock, in tandem
with driving sales of newer product and the sale of LCD Enterprises
Limited in November 2024.
Outlook
Our current forecast to year
end March 2025 remains on track for year-on-year growth,
and we continue to work on many of the turnaround initiatives
outlined in the Annual Report and our Interim Results.
Olly Raeburn,
CEO, commented:
"In a tough economic climate, we are
pleased to be able to report growth in revenue, margins and gross
profits through this critical quarter. Concurrently we are
continuing to drive down the inventory levels that had built up in
recent years and are delivering our change plans in a steady and
sustainable way. Our turnaround is very much on track as we further
reduce central costs, focus on our core brands and improve
operational processes across the business."
Hornby will announce its preliminary
results for the year ended 31 March 2025 in
June.