Hornby plc HRN claims for the umpteenth time that it is at last getting its act together over the delivery problems which have been plaguing it for years. It introduced a new strategy to increase sales which failed to do so because it involved putting an end to discounting. which, not surprisingly led directly to a fall in sales. Although there was some improvement towards the end of the year both sales and profits fell as expected.
It did not however end there because the sales problem was made worse, as it continued to be affected by late deliveries. Hornby must have more experience of long standing delivery problems than any other UK company and it still could not find a solution to what is after all a basic management problem
But good news is in the offing and it intends to refine the strategy which has been a failure so far. The refinement is one which will need more finance, so the begging bowl has come out again and new lenders have been approached for a new finance facility which appears to have been approved and is expected to be in place by mid June. Barclays is doing its bit by agreeing to a waiver for an expected breach of covenant.
The interim Chairman claims that the dust is now settling and trust amongst retailers and customers is returning. One can only hope that this time it will not just be a case of more broken promises.