Hornby Plc ("Hornby"), the international hobby products group, has today announced its results for the year ended 31 March 2011
· Turnover for the year down 1% to £63.4 million (2010: £63.9 million)
· Net debt £6.1 million (2010: £3.2 million)
· Underlying profit before tax* of £4.4 million (2010: £5.7 million)
· Reported profit before tax of £4.1 million (2010: £5.2 million)
· Statutory basic earnings per share 7.50p (2010: 9.76p)
· Total dividend of 5.0p per share (2010: 5.0p)
· Sales of London 2012 merchandise accelerating
· New licence wins including Star Wars and Disney Pixar's 'Cars 2'
Frank Martin, Chief Executive of Hornby, commented:
"The business is in great shape. We are delighted that we have secured the worldwide licence for a range of Star Wars Scalextric products. As the films are converted into 3D format by Lucasfilm over the next few years, we anticipate that we will get an encouraging reaction to our new range of speeder bikes and X-wing fighters. We also have high hopes for our products associated with the new Disney/Pixar movie "Cars2" and have also secured the exclusive worldwide Master Toy licence rights to a new children's animated TV series 'Olly the Little White Van' which will soon be launched on ITV.
"Our range of London 2012 merchandise is now gathering real momentum. As we approach a year to go to the games, we are seeing a significant increase in sales. We are also benefiting from the increased distribution coverage.
"The team is very pleased that our supply chain is now delivering. Our major suppliers are working well and we are confident that they will support our growth ambitions in the UK and our overseas markets.
"Looking ahead, Hornby is in an excellent position. This is a very exciting time for us with the imminent launch of new products. The new licence wins have presented us with an outstanding opportunity to appeal to a new generation of hobbyists and represents a major opportunity for us to grow our business and deliver significant value for our shareholders."
Outlook from CHAIRMAN'S STATEMENT (Neil Johnson, Chairman, 3 June 2011)
Despite the frustrations caused by supply delays, the Group has continued to exploit the synergies arising from its strong brand portfolio. In particular our prominent position has resulted in further high profile licences being secured. We will shortly launch Scalextric products based on the forthcoming Disney/Pixar movie "Cars 2". We have also achieved a major coup in securing worldwide Slot-racing rights to the Star Wars movie franchise. Beginning with the theatrical release of Star Wars: Episode I The Phantom Menace in 2012, Lucasfilm will convert the series of six Star Wars movies into 3D format. We believe that our association with this powerful franchise will drive incremental Scalextric sales for many years to come, particularly in the USA.