International toy company Hornby, backed by billionaire Frasers Group founder Mike Ashley, has seen a boost in sales owing to a successful festive season and attracting new customers.
The models and collectables group notified the markets today of a seven per cent rise in group sales for the third quarter ending on 31 December, as reported by .
Sales for the financial year have increased by eight per cent, and there has been a notable 10 per cent jump in gross profits.
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Hornby attributes this positive development to a "strong programme" of Black Friday and Christmas promotions, leading to a 23 per cent increase in revenue and a staggering 38 per cent growth in gross profit over the previous year.
This comes amid a generally challenging festive period for other high street retailers; data from the British Retail Consortium indicates a 1.5 per cent decrease in non-food sales in the 海角视频 during this year's key trading quarter.
Hornby's Chief executive Olly Raeburn commented: "In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter. " He added: "Concurrently we are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way."
Mike Ashley's role at Hornby further underscores the firm's strategic direction, given his vast experience as the founder of Frasers Group Plc.
Retail magnate Mike Ashley took on a consultancy post at Hornby in March, following a significant increase in his stake in the model railway maker the previous month. The mogul behind brands like Sports Direct and House of Fraser secured upwards of 11 million shares in the Kent-based firm, uplifting his total holding to over 15 million, or an 8.9% interest.
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Later that year, in a financial report to the London Stock Exchange, Hornby disclosed a favorable trading period from 1 April to 31 August, 2024, with sales and gross profit climbing by 10% compared to the corresponding timeframe in 2023. The company's prospects for the fiscal year concluding in March 2025 are promising, with Hornby today announcing its trajectory "on track for year-on-year growth," whilst it maintains focus on various ongoing business recovery initiatives.
"Our turnaround is very much on track as we further reduce central costs, focus on our core brands and improve operational processes across the business," remarked Raeburn, reinforcing the positive momentum gathered by the firm’s strategic efforts.