Hornby share price plummets after sales go off the rails

 
Oliver Gill
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Miniature Train
Hornby has been making miniature trains for over a century (Source: Getty)

Shares in miniature transport firm Hornby took a tumble this morning after disappointing investors on first-half trading.

The Kent-based firm said sales had been hit by softer market demand over the summer months and an increase in competition from independent firms in the UK.

Hornby reckons it can make up on the lost ground in the second half of the year.

Shares fell over 15 per cent in the minutes that followed the 10am statement before recovering slightly, and are currently down over seven per cent.

Read more: Hornby appoints millennial fund manager to its board

"It is expected that trading this year will be more heavily weighted to the second half than last year due to the relative timing of the new product releases year-on-year and to the significant stock reduction in the first half of the previous financial year," the firm said in a statement.

Nevertheless, it warned:

There is a risk that the shortfall in performance to date may not be recovered fully over the remainder of the financial year.

Hornby has been the subject of a takeover attempt by Barnes-based asset manager Phoenix and its management will today face investors at the firm's AGM.

Read more: Going off the rails? Hornby rubbishes Phoenix's takeover offer

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