Hornby earnings come off the rails

Model train firm Hornby says that its annual profits have been hit by supply chain problems.

The UK group, which also makes Scalextric model racing car sets, said delays in shipments from the Far East had impacted European results.

The UK performance was also hampered by a spending slowdown in recent weeks, it added.

Margate-based Hornby warned that pre-tax profits for the year to March 31 would come in at between £8.75 million and £9 million as a result, compared with market estimates of £9.2 million.

The group, which also owns the Airfix model-making brand, said the impact of the recent shipping delays would defer sales into the coming financial year.

But it added: "We have taken steps to ensure that the rate of new product deliveries is improved to meet demand in the new financial year."

The company has also increased its exposure to continental Europe in recent years, following the acquisition of businesses in Spain, Italy, France and Germany.

Image: Model train maker's profits hit buffers

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