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Hornby's China factory on track

Hornby has said that it will be able to make enough model railway sets to meet demand for the first time in five years, after it resolved a long-running problem with its main supplier in China.

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Hornby has said that it will be able to make enough model railway sets to meet demand for the first time in five years, after it resolved a long-running problem with its main supplier in China.
Analysts are expecting sales to be boosted by 20pc this year as a result of the sorting out of the production issue and the benefit of the Olympics, but Mr Martin said the high price of plastic and labour was pushing up costs. Credit: Photo: Daniel Jones

The toy maker has been bedevilled with supply issues since the main factory in China specialising in model trains ran into financial difficulties in 2006.

"We just haven't fulfilled our potential," said Frank Martin, chief executive, who said that many of its new product ideas had never made it to shop shelves, because the factory was not able to deliver in time.

However, it has persuaded its main Scalextric manufacturer to branch out into trains, to ensure that not only will it be able to produce 130,000 train sets, but it will also be able to produce its wide range of Olympic-branded toys, after winning the licence to manufacture London 2012 toys and key rings.

Mr Martin said that in total "millions" of Olympic products would be produced and that its Velodrome Scalextric, featuring model bicycles racing around a sloping track was likely to be its best-selling product of the year.

Analysts are expecting sales to be boosted by 20pc this year as a result of the sorting out of the production issue and the benefit of the Olympics, but Mr Martin said the high price of plastic and labour was pushing up costs.

The shares finished up ¾ to 137p.