02-16-2016, 09:11 AM
Quote:James May urges nation to 'save Hornby' as shares plunge 62%
Well-known producer of railway sets, Airfix kits and Corgi cars issues third profit warning in five months
However, Hornby has suffered a torrid period in the last few years due to falling sales, problems with suppliers in China, and disruption from upgrading its computer and stock management systems. The Kent-based company warned on Wednesday that its problems had worsened significantly since the start of the year. Sales of Hornby products fell in January in the UK and the company has also discovered that it needs to write £1m from the value of its stock.
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These factors mean that Hornby is now expecting to record an underlying pretax loss of between £5.5m and £6m for its financial year, far larger than expected, and there is a risk that the company will breach banking covenants in March. If it does so, there is a risk that Barclays, its bank, could call in the debt, threatening the company with collapse. Hornby has roughly £9m of net debt, all with Barclays.
Full story: <!-- m --><a class="postlink" href="http://www.theguardian.com/business/2016/feb/10/hornby-warns-it-will-lose-6m-pounds-this-year">http://www.theguardian.com/business/201 ... -this-year</a><!-- m -->