HORNBY, the model railway maker and owner of brands such as Corgi and Scalextric, today announced pre-tax losses of £3.4m, down from £4m profit the year before.
Turnover fell from £64.4m to £57.4m year-on-year, with the decline attributed to supply problems and disappointing Olympic sales.
“This year was one of challenging economic conditions in all of our major markets that were exacerbated by continuing disruptions to the model railway supply chain and the distractions of what was a disappointing venture into London 2012 branded products,” said the company.
“We estimate that across the group, more than 10 per cent of product ordered was not delivered during the year with our European subsidiaries faring worse than the UK business.
“The UK business was also impacted by the sales of London 2012 product, which although totalling just short of £5 million produced an overall loss of £1.3 million.