Hornby sidetracked by third profit warning

Hornby, the maker of model trains, Corgi toys and Scalextric sets, has issued its third profit warning in less than two years after being hit by £1.2 million of losses.

The small-cap toymaker yesterday said it had lost an additional £200,000 in the past quarter because of foreign exchange rate movements, taking total losses for the year to £1.2 million. It follows a warning by Hornby in January that prolonged problems with a Chinese supplier would result in a £1 million loss for the year to March 31st.

It said the supply delays meant it suffered a decline in the value of currency held to pay its Chinese suppliers.

Hornby paid £600,000 to end its agreement with the Chinese manufacturer and said yesterday it now expected a “gradual improvement” in business. – Copyright The Financial Times Limited 2014