Late sales gains for model firm Hornby

The group reported a 9 per cent drop in underlying profits for the year to March 31 but said the period finished in robust fashion as many retailers in Britain looked to restock after a strong Christmas trading period.

With its "formidable" portfolio of hobby brands, including Corgi and Airfix and Scalextric, Hornby said full-year sales rose by 5 per cent to 64.7m and were expected to show a significant further increase this year.

It has reported strong interest in existing and proposed London 2012 ranges and predicted that products linked to the Olympic Games should offer a major boost to revenues in the financial years to March 2012 and 2013.

While Hornby enjoyed a robust end to the financial year, difficult trading at the start of the period and the impact of the weak pound meant profits dropped to 5.7m from 6.3m a year earlier.

Hornby said its improved prospects meant it would pay a dividend of 5p a share.