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Hornby - European sales grow 50% in H1

December 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HRN
  • Price:
  • 132.5p
Pleasing interims from Hornby showing excellent sales growth both in Continental Europe and in the UK.For the period, sales were up 11% to £28.4m and pretax profit was up 80% to £1.2m. Impressively the European business grew by 50% to £6.9m with Spain, Italy and Germany all up as a result of the improved performance of one of Hornby's major suppliers in China (Sanda Kan) and the addition of a second supplier and this enabled it to meet pent up demand. But even now demand is so great that Hornby says it is still limited by supply.Sales in the UK came in 4% better at £22m and the in-store concessions performed particularly strongly. A stronger pre-Christmas trading period is in sight not just because last year’s compara ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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