LONDON: British toymaker Hornby PLC said it would decrease its product lines by 40 percent and exit a majority of its concession agreements in the UK in a turnaround plan aimed at boosting its gross margins.
Hornby, famous for its model railways, appointed finance director Steve Cooke as its CEO in April, two months after its previous head, Richard Ames, left in the wake of its third profit warning. The new business plan will focus on its core hobby customers, Cooke said in a statement, adding that revenue would fall by about one-quarter.
The company reported an underlying pretax loss of ￡5.7 million (US$8.35 million) for the year ended March 31.
