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Hornby (HNBY) transforms profits into another loss

Unbelievably in its big transformation year, Hornby has managed to turn last years small interim profit into major losses for the half year to 30th September.  As group sales fell by some 5% that is perhaps not surprising.

Underlying profit before tax of £0.2m  has been transformed  into a loss of £3.4m and the statutory loss has shot up from £0.5m to  £4.5m.

After all this time the same management is trotting out the same old excuses – supply side disruptions caused by managements transformation plans. How long can this be allowed to continue. This time it is Europe which gets the blame, rather than the UK where sales did rise by 10% .And then management concludes that these transformations will give it a platform to move forward. – it is not a platform which Hornby needs but a repair yard and it does not seem to have one.

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