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| Hornby in profits warning as Olympics sales disappoint | Hornby in profits warning as Olympics sales disappoint |
| (35 minutes later) | |
| Model maker Hornby has said it will not make a profit this year, due to disappointing sales of London 2012 merchandise and supply problems. | Model maker Hornby has said it will not make a profit this year, due to disappointing sales of London 2012 merchandise and supply problems. |
| Lower-than-expected sales of Olympic products meant retailers cancelled repeat orders, it said. It also expects substantial disruption to production at one of its major suppliers in China. | Lower-than-expected sales of Olympic products meant retailers cancelled repeat orders, it said. It also expects substantial disruption to production at one of its major suppliers in China. |
| With consumer spending still depressed, the firm now only expects to break even in the 2012-13 financial year. | With consumer spending still depressed, the firm now only expects to break even in the 2012-13 financial year. |
| Last year, it made profits of £4.5m. | Last year, it made profits of £4.5m. |
| Its shares fell more than 40% to 50 pence in the first few minutes of trading. | |
| Hornby, which owns the Scalextric and Corgi brands, gained the licence to sell a range of London 2012 merchandising, including replica mascots and a Scalextric velodrome. | Hornby, which owns the Scalextric and Corgi brands, gained the licence to sell a range of London 2012 merchandising, including replica mascots and a Scalextric velodrome. |
| This year, the firm said its performance would be "constrained significantly". | This year, the firm said its performance would be "constrained significantly". |
| It said it would try to find alternative sources of products to try to reduce the disruption created by its Chinese supplier, which is rationalising its manufacturing. | It said it would try to find alternative sources of products to try to reduce the disruption created by its Chinese supplier, which is rationalising its manufacturing. |
| This supplier currently represents 35% of Hornby's purchases, but at its peak had accounted for about 75%. | This supplier currently represents 35% of Hornby's purchases, but at its peak had accounted for about 75%. |