In major news on UK stocks, Hornby PLC (GB:HRN) shares fell by nearly 8% as of writing, after the company maintained a cautious outlook despite posting an uptick in its full-year sales for FY24 (ended March 31, 2024). The caution was mainly triggered by macro challenges affecting the business. For the full year, the company’s sales reached £56.2 million, indicating a modest increase of 2% compared to the previous year.
Hornby is scheduled to release its preliminary results for Fiscal 2024 in June.
Hornby PLC is a British company that specializes in manufacturing model railways and operates in the UK, Europe, and the U.S.
More from Hornby’s Trading Update
As per Hornby’s recent trading update, fourth-quarter sales declined by 8% year-over-year, primarily due to disruptions in the Red Sea, the postponement of certain deliveries to April, and early Easter this year. The company’s direct-to-consumer sales have continued to show robust growth, surpassing last year by 18%.
Additionally, the company noted that its underlying losses before tax had deteriorated in the second half of its financial year. This was mainly attributed to margins, which lagged due to higher tooling amortization compared to previous years. However, the company witnessed a modest improvement in margins and profitability in the second half of the year. Overall, the company stated that the results were in line with its expectations.
Moving forward, Hornby is ramping up its investments in sales and marketing, along with research, data, and loyalty capabilities. The company anticipates that its initiatives will begin to positively impact its revenue and margins during Fiscal 2025.
Year-to-date, HRN stock has gained over 130%, mainly driven by the additional investment from the UK-based Frasers Group PLC (GB:FRAS).
