Hornby signals move back into profit

Model train maker Hornby has said it is set to report its first annual profit in three years.

The firm, which also owns the Airfix and Scalextric model brands, said sales growth in the January-to-March period had improved "significantly".

As a result, it expects sales to grow 13% in the financial year to the end of March, and to report an underlying full-year profit of £1.5m.

Shares in Hornby jumped 5% following the trading update.

The company, which has been struggling with supplier problems for some time, reported a half-year loss of £516,000 in September.

Hornby said it was making progress in moving to its new headquarters in Sandwich, Kent. The company has begun moving out of its old HQ in Margate, and expects to complete the relocation by the end of May.

In a statement, Hornby said that work on its reorganisation was continuing "and plans are now developed for the next phase that incorporates the rationalisation of the European warehouses and management structures for implementation later this year".

Hornby also announced that group finance director Nick Stone will leave the company later in the year.