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Hornby has made a return to profitability in the first half of its financial year.
The hobby products company, specialising in model trains, has increased its revenue by 33% to £21.1m following a business restructuring and new product launches.
The business reported a statutory pre-tax profit of £17,000 compared to a loss of £2.8m in the same period last year.
According to Hornby, online sales have risen in the past six months due to more people shopping online and taking on hobbies during the pandemic.
Lyndon Davies, Hornby’s chief executive, said: “Much of my time so far at Hornby has been spent on restructuring the business, correcting the problems which were allowed to build up in the past and ‘fixing the engine’.
“It has been a longer journey than I had hoped, but it was important to get it right. As you can see, during the first six months of our financial year, Hornby has moved back into profitability – a small, but significant milestone, especially considering the Covid-19 pandemic overshadowing every move we make.”
He added: “Achieving this turnaround has been a battle which was fought on many fronts, demanding a massive effort from the senior management team, and we now move into what is traditionally the busier period in our financial year.
“More recently the team has been focussed on our future plans. We will not only build on the success of the fantastic new products that have begun to release to the market, we also have to plan our best strategy to deal with the ‘new normal’ after the changes we have seen in the course of this year.”
