Hornby has warned that more job cuts are on the way after making a “signifiant headcount reduction” as part of its turnaround plan being aided by billionaire Mike Ashley.
The Kent-headquartered company said the job losses have helped to save around £1m of annualised central costs in the six months to 30 September, 2024, while a further £500,000 of savings are expected in 2025.
In a statement issued to the London Stock Exchange, Hornby said: “We have enjoyed revenue growth at the top line for five years in a row, but our return to profitability has been held back, in part, by a central cost base that has grown disproportionately over the years and is suited to a larger business.
“In H1 2024 we spent a great deal of time looking at structures and costs across the organisation and enacted a significant headcount reduction in the Margate head office in September.”
It added: “We continue to review our central overheads, and cost base in totality, and there are a number of live initiatives in play that will further, positively, impact this number moving forwards.”
Hornby, which counts Mike Ashley’s Frasers Group as a shareholder, has also reported a revenue of £25m for the first half of its financial year, a ten per cent rise.
However, the London-listed business has see its pre-tax loss widen from £4.9m to £5.1m over the same period.
Hornby also confirmed that its digital revenue increased by 12 per cent compared to the same period in 2023 and is up 45 per cent in relation to the first half in 2022.
Hornby ‘focused on right-sizing the business’
Chief executive Olly Raeburn said: “We continue to make good progress with our turnaround strategy.
“H1 2024 has seen us make a number of strategic and structural changes.
“These will deliver clear operational efficiencies and significant cost savings.
“Whilst the impact of some of these decisions will not be fully felt until the next financial year, we are firmly focused on right-sizing the business for sustainable growth.
“Revenue performance versus last year has been solid, and we exit the half year with a clear, and aggressive, plan for maintaining that momentum through the critical Black Friday and Christmas trading periods.
“As ever, the third quarter is a crucial one for us so we look forward to sharing the outcomes in our January update.”