Hornby says orders ahead of last year despite pressure on consumers
Model train maker Hornby said orders are ahead of last year as it told shareholders its latest performance is on track.
The collectibles group saw shares nudge higher as investors continue to seek signs of positive consumer sentiment amid concerns rising household bills could affect spending.
The firm highlighted that it takes encouragement from previous performances during times of economic uncertainty.
We are mindful of the impact the current economic climate may have on demand but remain encouraged by the historic performance of the hobby industry in prior downturns and our expectations for the full year are unchanged
Hornby revealed on Wednesday that both sales and profit margins over the five months to August 31 were “in line” with its performance over the same period last year.
Nevertheless, the group flagged that its overall performance for the year will be heavily influenced by its “sales rate over the key Christmas trading period”.
The retail business said it has an “outstanding order book” which is higher than compared with the same period last year.
In a statement, the group added: “We are mindful of the impact the current economic climate may have on demand but remain encouraged by the historic performance of the hobby industry in prior downturns and our expectations for the full year are unchanged.”
Hornby also said it has sought mitigate any potential supply chain disruption it could face over the key Christmas period by bring forward shipping on key product lines.
Shares in the company were 0.9% higher after early trading.