Hornby PLC Trading Statement (2284M)
January 20 2021 - 01:00AM
UK Regulatory
TIDMHRN
RNS Number : 2284M
Hornby PLC
20 January 2021
Hornby Plc ("Hornby" or "the Group")
Trading Update
Hornby Plc, the international models and collectibles Group, is
today updating shareholders on trading for the period from 1
October 2020 to date, which includes the important Christmas and
New Year period.
Business Performance
Group sales for the third quarter were positive and ahead of the
same period last year. As a result, cumulative group sales for the
financial year to date are ahead of last year. This has been driven
by a hugely popular product range and increased global demand as
consumers spend more time indoors focusing on their hobbies and
taking comfort from our brands.
January to date has been a slower start that we would have liked
as we contend with tighter COVID-19 restrictions within the
warehouse and the impact of courier companies pausing collections
bound for Europe due to Brexit backlogs. We have now largely worked
through these issues and will start shipping to Europe
imminently.
Covid-19
In the short term we have had to make repeated changes and
adaptations to protect our supply chain, to ensure that we will be
stronger after Covid-19 than we were before it. Our sales
performance currently bears this out; throughout this difficult
period most of our wonderful staff have had to adapt by working
from home or restricting their activities in other ways, but they
still achieved higher sales than in the prior year, pre-Covid. We
need to continue this hard work so as to earn our customers'
continued loyalty.
We have to accept that the previously established retail
environment has changed forever, due to the pandemic. We continue
to adapt to this new situation and the challenges it presents. Our
responses, and the changes we have made, have given us a stronger
bond with our customers. Our direct sales are up 133% year on
year.
Financial Position
Covid-19 has had dire consequences for many businesses, but we
have coped with it. We will be in a much better position to advance
still further, once the pandemic is over.
Net cash at the end of December 2020 was GBP3.8 million compared
to net cash GBP3.9 million at the end of September 2020 and net
debt GBP9.9 million at December 2019.
Product Range 2021
We would normally be attending several Toy Fairs during January
but these have been cancelled due to COVID restrictions. As such we
have digitally previewed our latest range announcements which have
been released to the trade and the public through various social
media platforms. The feedback was encouraging, and we were buoyed
by the levels of interest.
Outlook
We currently expect to finish the year with sales 15-20% ahead
of the prior year subject to the warehouse still being able to
operate fully with new COVID restrictions in place.
Our new website is expected to go live in the coming weeks and
we anticipate a much improved interaction with our much loved
customers as the platform allows us to continually develop the
communities we serve.
Hornby will announce its preliminary results for the year ended
31 March 2021 in June.
Chief Executive Officer, Lyndon Davies commented:
No one expected the last year to turn out as it did. It is hard,
however, not to want to spread a little 'good news' amongst all the
bad. The transformation at Hornby continues to accelerate, this is
not time for braking, we must now accelerate upwards through the
gears.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
-ends-
Enquiries:
Hornby plc
Lyndon Davies, CEO 01843 233 500
Kirstie Gould, CFO
Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber 020 3100 2222
Edward Thomas
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END
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