Sept 25 British toy maker Hornby Plc
warned results for the year would fall short of its expectations
as depressed consumer spending and disappointing sales of 2012
London Olympics merchandise prompted retailers to buy
The company, known for its model railways, also said a
disruption in shipments from a major Chinese supplier would also
hurt its results.
Hornby said it now expects approximately break-even results
for the year ending March 31, 2013.
The company was anticipating a boost from the Olympics but
lower-than-expected sales of Games merchandise forced retailers
to discount heavily, the company said.
"The consequence of this for Hornby was that retailers lost
confidence in many categories of London 2012 merchandise, and
repeat orders for our products were cancelled," the company
With the country in recession and Britons' disposable
incomes squeezed by government belt-tightening and muted wage
growth several retailers have found the going tough.
Shares in the company, whose founder invented Meccano
construction toys early last century, were down 38 percent at
56.4 pence at 0736 GMT on the London Stock Exchange.
The stock, which lost more than a third of its value so far
this year as of Monday's close, was the biggest percentage loser
on the exchange on Tuesday.