Hornby has announced positive results in its third quarter trading update, with group sales jumping by 7% year-on-year.

The international models and collectables group said this figure, which covered the period from 1 October to 31 December 2024, compared to the 1.5% year-on-year decrease in UK non-food sales announced by the British Retail Consortium.

Group sales for the financial year to date at Hornby were 8% ahead of last year, while gross profits are up 10%.

The firm has pointed towards a "strong programme of activity around Black Friday and Christmas" for these results, with revenue and gross profit increasing year-on-year by 23% and 38%, respectively, in December.

Furthermore, almost 50% of all Black Friday transactions came from first-time customers, with Hornby stating that this demonstrates "improved acquisition of new customers" to its brands in this "key promotional period".

Chief executive officer at Hornby, Olly Raeburn, said: "In a tough economic climate, we are pleased to be able to report growth in revenue, margins and gross profits through this critical quarter. Concurrently, we are continuing to drive down the inventory levels that had built up in recent years and are delivering our change plans in a steady and sustainable way. Our turnaround is very much on track as we further reduce central costs, focus on our core brands and improve operational processes across the business."

Looking at its financial position, the firm was able to reduce its net debt marginally from £18.8m at the end of September to £18.2m by the end of 2024.

Its inventory also fell by almost 23% to £16.6m, as a result of its ongoing focus on reducing aged stock and driving sales of new products.

In its outlook for the year to March 2025, Hornby said it remains "on track for year-on-year growth", while it continues to work on the turnaround initiatives outlined in the annual report and its interim results.

It is set to announce its preliminary results for the year ended 31 March 2025 in June.

Investment director at AJ Bell, Russ Mould, concluded: "Mike Ashley gets frustrated when things are derailed so he’ll be pleased that Hornby’s turnaround efforts are finally chugging along.

"Frasers owns 9.25% of the toy train company, which has reported a decent end to 2024. Progress looks encouraging with an increase in first-time customers, higher margins and lower net debt.

"Hornby is not going to be fixed overnight but it is encouraging to see the business is finally on the right track."

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