Hornby set for Olympics boost

The group reported a nine per cent drop in underlying profits for the year to March 31, but said the period finished in robust fashion as many UK retailers looked to restock after a strong Christmas trading period.

With its "formidable" portfolio of hobby brands, including Corgi and Airfix and Scalextric, Hornby said full-year sales rose by five per cent to 64.7m and were expected to show a significant further increase this year.

It has reported strong interest in existing and proposed London 2012 ranges and predicted that products linked to the games should offer a major boost to revenues in the financial years to March 2012 and 2013.

Price points will range from below 5 for Corgi vehicles to more than 100 for limited edition Hornby train sets.

The company added that Hornby and Scalextric products linked to the Toy Story 3 film were expected to benefit sales in the current financial year.

While Hornby enjoyed a robust end to the financial year, difficult trading at the start of the period and the impact of the weak pound meant profits dropped to 5.7m from 6.3m a year earlier.

Chairman Neil Johnson said the group had emerged from a difficult trading period in sound financial health.

He added: "The board is pleased with the performance of the group which gives us renewed confidence for the future. The group now has significantly improved prospects for future growth."