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Toy train maker Hornby has successfully completed the first stage of its turnaround plan as it looks to reduce product lines and cut back on its investment needs.
The loss-making company behind the Scalextric car models has been aiming to create “a smaller and more focused business” after being hit by a series of profit warnings and management changes.
In an update on Friday, Hornby said it has successfully restructured its UK and European business, reducing its cost base, “rationalising” its product offering, and cutting back on investment.
Hornby has been supplying adult hobbyists and children since the 1920s. But the Kent-based Aim-listed company has been hit with difficulties at its Chinese suppliers and a costly reorganisation of distribution and back office systems, which badly disrupted its ability to deliver to customers.
Chief executive Steve Cooke, who joined the company last year, said its restructuring provided a “a strong base from which Hornby can build”.
“It has been a challenging time for all of Hornby’s employees and I would like to thank them for their dedication, commitment and hard work over the past year”, said Mr Cooke.
“Coupled with the considerable improvement in our financial position, I am confident that we have set the Group on the right course to generate value for all our stakeholders.”