Hornby sales hit by attacks on Red Sea shipping

Model train manufacturer Hornby has blamed falling sales on delivery delays linked to attacks on shipping in the Red Sea.

The Kent-based company, which specialises in toys and collectibles, said its sales declined 8% in the last quarter.

It said the decline was partly driven by delays to deliveries via the Red Sea, with the movement of some container ships being pushed back from March to April.

Container shipping firms have been forced to re-route around the Cape of Good Hope in response, adding weeks to voyage times.

Iran-backed Houthi rebels are behind the attacks in what they say is a campaign of solidarity with Palestinians in Gaza amid the Israel-Hamas conflict.

Ongoing attacks along key trade routes, including the Suez Canal, have had a knock-on effect on delivery times and freight costs.

Pepco Group, which owns Poundland, and fashion chain Next, are among retailers that have flagged heightened freight charges and delays due to disruption in the Middle East.

Hornby, which is based in Margate and also sells Scalextric, said lower sales were also caused by Easter being celebrated earlier.

The company said group sales for the 12-months ending March 31 was £56.2m, slightly ahead of the previous 12 months and driven by direct-to-consumer sales, which jumped by nearly a fifth.

It expects sales to improve as it targets new customers and launches new product ranges.

Hornby said: "We do, however, remain cautious in our outlook due to the natural challenges facing a business in turnaround, and the uncertainty of the wider economic and socio-political factors affecting all businesses at this time."

Hornby will announce its preliminary results for the year-ended 31 March 2024 in June.

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