The toy-train maker Hornby enjoyed bumper trading in the final three months of last year, marking a turnaround for the Kent-based company, which has struggled since a hobby boom during the Covid pandemic.
Sales at the model train firm, which also sells toy planes and cars under the Airfix, Scalextric and Corgi brands, rose 7% in the key “golden quarter” compared with the same period a year earlier.
December saw particular growth, up 8% year on year, while profits were up 10%. Hornby shares rose almost 4% on Wednesday on the news.
The company credited its success to activity around Black Friday, when almost 50% of transactions came from first-time customers, and Christmas demand in December, when revenue grew 23% and profit grew 38% year on year.
Hornby has also benefited from the rise of the “kidult” market – nostalgic teenagers and adults snapping up toys and particularly collectibles. Research from the consumer behaviour advisers Circana indicates this accounts for almost a third of UK toy sales and continues to grow.
The positive results follow a turbulent few years for the Margate-based firm. It enjoyed a jump in sales during Covid lockdowns from shoppers staying at home and shopping online, but by 2023 that had soured. The company saw losses mount as inventory levels built up, and by the end of the year shares had slipped to their lowest price in decades.
“Our turnaround is very much on track,” said Olly Raeburn, Hornby’s chief executive since 2023, “as we further reduce central costs, focus on our core brands and improve operational processes across the business.”
The success of Hornby, which is being advised by the Sports Direct founder Mike Ashley, whose Frasers Group owns a 9.2% stake, comes despite shoppers cutting back, with figures from the British Retail Consortium suggesting that average UK non-food sales declined by 1.5% in 2024. The three months to December were not much better, with annual growth at 0.4%, as shoppers prioritised spending on food and drink over the festive season.
Raeburn said: “In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter.”
