Model trains and Scalextric group Hornby today issued its second profits warning of the year, as it said a return to profitability in its international business had not been enough to counter continued tough trading in the UK.
It said pre-tax profits for the year which ended last month are now likely to come in at “not less than £4.5 million”.
Following January’s profit warning, analysts had pencilled in profits of £5 million for the year against the £4.1 million it made in the year to March 2011.
Chairman Neil Johnson said: “The results for the year reflect the impact of a weak retail environment in the UK.
“However, the performance of our international business continues to improve and our London 2012 Games range of merchandise is proving to be increasingly popular.
“The board is looking ahead with confidence.”
Hornby shares fell by 2.13p to 93.5p.
The group described final-quarter trading as “muted” and that “the backdrop of a challenging UK retail sector remains”.
However, Hornby said it had increased distribution coverage significantly across the country.
