Hornby PLC Solid Progress On Turnaround Plan (8685B)
07 April 2017 - 4:00PM
UK Regulatory
TIDMHRN
RNS Number : 8685B
Hornby PLC
07 April 2017
Hornby plc
("Hornby" or "the Group")
7 April 2017
SOLID PROGRESS ON TURNAROUND PLAN CREATING SOUND PLATFORM FOR
FUTURE GROWTH
Pre-close statement
Hornby Plc, the international hobby products group, provides an
update to shareholders on progress made in its turnaround plan and
on Group trading for the period from 6 February 2017 to the end of
the financial year, 31 March 2017.
First stage of turnaround successfully completed
The first stage of Hornby's turnaround is now completed and has
progressed in-line with the Board's plan. The Group has
restructured its UK and European operations, resulting in
structural improvements to the cost base, and has re-engaged with
its core independent retailer base as part of a re-positioned sales
channel strategy. The product range has been rationalised and
re-focused which has allowed Hornby to reduce capital expenditure
and improve working capital.
The business is focused strongly on improving cash flow and at
31 March 2017 net cash on the balance sheet was GBP1.1m (31 March
2016 net debt GBP7.2m) which was ahead of management's
expectations. This has resulted from sound underlying trading
combined with a carefully managed programme of stock reduction and
the successful sale of the Group's Margate site.
Current trading
As the Group has previously stated, the year ended 31 March 2017
has been one of transition and, as a result, Hornby was loss making
during this period in line with the Board's expectations. Revenue
performance for the full year was slightly ahead of our plan, with
the fourth quarter showing an improving trend.
Outlook
With the first phase of the turnaround plan now largely
complete, Hornby is confident in the business' underlying trading
momentum as it embarks on the next phase of its turnaround plan.
Having placed the Group on a solid financial footing, Hornby's
focus is now on realising the full potential of its iconic
brands.
Commenting on the trading performance, Steve Cooke, CEO of
Hornby, said:
"I am pleased to report that the first stage of our turnaround
plan has been successful and this provides a strong base from which
Hornby can build. It has been a challenging time for all of
Hornby's employees and I would like to thank them for their
dedication, commitment and hard work over the past year. Improving
our customer focus has been a key part of the plan and I am
particularly pleased that we have now begun to restore our leading
position with our core hobby retail customers. Coupled with the
considerable improvement in our financial position, I am confident
that we have set the Group on the right course to generate value
for all our stakeholders.
-ends-
Date: 7 April 2017
For further information, contact:
Hornby Plc 01843 233500
Steve Cooke, Chief Executive
David Mulligan, Group Finance Director
www.hornby.com
Capital Access Group 020 3763 3400
Scott Fulton
Jessica Bradford
Numis Securities Limited 020 7260 1000
Oliver Cardigan (Nomad)
Paul Gillam
Tom Ballard
This information is provided by RNS
The company news service from the London Stock Exchange
END
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