Model Forum / General / Railroads / June 2004

nicked from the Yahoo finance pages and Reuters:

Model train maker Hornby says it hopes acquisitions in Spain and Italy
will help it conquer the European market, after posting full-year profits
in line with expectations.

Hornby will move all production from the newly acquired sites to China
and use the Mediterranean firms as doors to the market in continental
Europe.

The purchase of the assets of Lima, a manufacturer just outside Milan,
will temporarily eat into profits for the current year, but Hornby
expected revenues from recently bought Spanish firm Electrotren to fill
that gap.

"We don't see dramatic growth, but we see good growth," Chief Executive
Frank Martin told Reuters on Friday. "There's this father and son, or
father and grandson element -- it's an activity they can happily do
together as a male bonding type of thing."

Hornby's pre-tax profits for the full year rose 20 percent to 6.47
million pounds, against a consensus forecast of 6.45 million, according
to Reuters Estimates. Sales were up 14 percent at 39 million pounds.

The company raised the total dividend by one-fifth to 30 pence.

From sharecast:

"Sales have been boosted by our new product launches and our focus on
growing our network of in-store concessions," Hornby said in a company
statement.

The group is also targeting bolt-on acquisitions, which are broadening
sales and product line coverage overseas, it added.

Hornby said trading in the new financial year has again started well and
it has also proposed a five for one share split to make the stock more
attractive to potential investors.