Toymaker Hornby reported a fall in revenue and another year of losses as it continued to be plagued by persistent supply backlogs.
The maker of Corgi cars, Hornby trains and Scalextric racetracks said on Tuesday that revenue for the 12 months ended March 31 would be lower than the previous year’s £35.7m due to issues in its supply chain dating back to 2017.
Those legacy engineering problems have begun to “tail off”, Hornby said, but still led to stock being ordered late and subsequently not arriving at stores on time.
Still, the group reported a “significantly lower” loss compared with the previous year’s £9.9m, in line with the board’s expectations despite reduced product availability and lower sales in the first half of the year.
“We are rebuilding trust with our customers and suppliers,” Hornby said in a trading update ahead of the release of its full results in June.
The group has suffered a tough five years, including multiple profit warnings and a halving of its share price since 2016.
Hornby on Tuesday said a new strategy under Phoenix Asset Management, which took control in 2017, is beginning to show results, and flagged that underlying margins have improved and a reduction in overheads has continued. It pinned its lower-than-expected loss on “a focus on doing more with less”.
Chief executive Lyndon Davies, an industry veteran, has focused on removing discounting of stock and improving management of its inventory and supply chain.
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