Financial Highlights
Group sales of £22.3 million (2014: £24.2 million).
Underlying Group loss of £3.4 million (2014: profit of £0.2 million).
Statutory loss for the period of £4.5 million (2014: loss of £0.5 million).
UK trading has recovered strongly - up 10% year on year since the beginning of September.
Refinancing completed with a successful move to AIM, placing of new shares and negotiation of new banking facility.
Net debt £5.7 million (2014: £11.0 million)
Strategic and Operational Highlights
Continued delivery against our significant plans to transform the Group.
New Enterprise Resource Planning (ERP) system implemented in the UK, but with significant disruption to trading in July and August.
Implementation of ERP system across Europe underway, ahead of plan.
Major European structure change brought forward causing organisational disruption but accelerating benefits.
UK supply chain delivery of 96% (2014: 65%).
Supply chain disruption in two European model rail factories adversely impacted trading during Q2 and Q3.
Property strategy continues with contracts exchanged to sell part of the Margate site, subject to planning consent.
Richard Ames, Hornby Chief Executive commented,
"We are at an important stage in Hornby's transformation. Our new ERP system is now embedded in the UK operation and following significant disruption in the first two months, the business is performing well in the important Christmas and New Year period."
"We have pulled forward our reorganisation plan for our European operations, which has contributed to further trading disruption but which accelerates our overall plan. We are confident that these changes will give us the platform from which we can drive our business forward."
