Hornby says it has “fixed the engine” and is on track to return to profitability after putting a stop to widespread price-slashing and investing in attracting customers.
Losses narrowed to £2.4m in the six months to 30 September, compared with £3m in the same period last year, and group revenue grew to £15.9m, a healthy 15 per cent rise on the £13.8m in 2018.
CEO Lyndon Davies says: "Revenue is growing, losses are narrowing and we are shifting gears in our journey back to profitability and beyond."
But Hornby admits it has always “taken advantage of all the opportunities on offer” to foster a modern brand.
In its interim report, the model maker says it has been “thinking a lot about how we reach customers”, balancing its important bricks and mortar trade with the inevitable world of online commerce.
The company intends to support its retail partners with “razor-sharp marketing” and use its online presence as a place for enthusiasts and potential customers to learn more about it brands and products. But it compared the current Hornby website to a cob-web ridden shop with “dusty old faded boxes” in the window that is need of a “complete refurbishment”.
“It should be a place where customers want to come to learn about our current and future products,” the company says. “Like our physical shops, we think it is important to make sure people know it is there and that we provide a delightful platform which digital customers can enjoy hanging around.”
Investment online will match its on-going investment in specialist shops and retail partners on the high street.