Hornby, the model-railway maker, today added currency problems to the long list of woes that will see it post a worse-than-expected annual loss of £1.2 million.
The Scalextrix and Airfix business issued the latest in a long line of profit warnings in January over an ongoing problem with its biggest Far East supplier, forecasting a £1 million loss and writing off about £600,000 to split from its biggest model-railway supplier.
But today Hornby, whose new chief executive Richard Ames joins later this month, said it had suffered a £200,000 foreign-exchange loss since January’s update that increases the annual deficit.
The toy group said it was talking to its main bankers about new banking facilities; net debt is now around £7.3 million against £2.1 million a year ago.
