🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Toymaker Hornby announces turnaround plan, reports FY pretax loss

Published 22/06/2016, 07:51
© Reuters.  Toymaker Hornby announces turnaround plan, reports FY pretax loss
HRN
-

(Reuters) - British toymaker Hornby Plc (L:HRN) said it would decrease its product lines by 40 percent and exit a majority of its concession agreements in the UK in a turnaround plan aimed at boosting its gross margins.

Hornby, famous for its model railways, warned on profit three times last year, with shares having tumbled 65 percent in the last twelve months.

The company appointed Finance Director Steve Cooke as its CEO in April, two months after its previous head Richard Ames left in the wake of its third profit warning.

The new business plan will focus on its core hobby customers, Cooke said in a statement, adding that revenue would fall by about a quarter.

The company will raise about 8 million pounds through a placing of shares in order to fund the restructuring.

Hornby reported an underlying pretax loss of 5.7 million pounds for the year ended March 31, compared with a profit of 1.6 million pounds a year earlier.

($1 = 0.6812 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.