Hornby PLC said on Tuesday that it expects a ‘modest’ loss for financial year ended March 31, after sales for the latest quarter failed to fully recover its previous performance shortfall.

Shares in Hornby were down 6.7% in London on Tuesday at 21.93 pence each.

The Margate-headquartered toy manufacturing company said that sales for the fourth quarter ending March 31 were ‘encouraging’ compared to a performance shortfall in the prior quarter, and were ahead of the fourth quarter in 2022. Sales and gross margins for the financial year were ahead of the prior year.

Despite the stronger close, Hornby said it remained behind internal budgets for the full year. It expects an underlying loss before tax this year, due to increased overheads and lower than anticipated sales.

For financial 2022, underlying pretax profit was £3.2 million. Statutory pretax profit was £582,000.

Hornby said it remains cautious in its outlook. It said it is currently uncertain how various factors including inflation, mortgage increases and the rising cost of living for consumers would affect its future sales.

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