Sales at toymaker Hornby up 7% after bumper Black Friday and Christmas
The toy-train maker Hornby enjoyed bumper trading in the final three months of last year, marking a turnaround for the Kent-based company, which has struggled since a hobby boom during the Covid pandemic.Sales at the model train firm, which also sells toy planes and cars under the Airfix, Scalextric and Corgi brands, rose 7% in the key “golden quarter” compared with the same period a year earlier.December saw particular growth, up 8% year on year, while profits were up 10%.Hornby shares rose almost 4% on Wednesday on the news.The company credited its success to activity around Black Friday, when almost 50% of transactions came from first-time customers, and Christmas demand in December, when revenue grew 23% and profit grew 38% year on year.
Hornby has also benefited from the rise of the “kidult” market – nostalgic teenagers and adults snapping up toys and particularly collectibles.Research from the consumer behaviour advisers Circana indicates this accounts for almost a third of UK toy sales and continues to grow.The positive results follow a turbulent few years for the Margate-based firm.It enjoyed a jump in sales during Covid lockdowns from shoppers staying at home and shopping online, but by 2023 that had soured.The company saw losses mount as inventory levels built up, and by the end of the year shares had slipped to their lowest price in decades.
“Our turnaround is very much on track,” said Olly Raeburn, Hornby’s chief executive since 2023, “as we further reduce central costs, focus on our core brands and improve operational processes across the business.”The success of Hornby, which is being advised by the Sports Direct founder Mike Ashley, whose Frasers Group owns a 9.2% stake, comes despite shoppers cutting back, with figures from the British Retail Consortium suggesting that average UK non-food sales declined by 1.5% in 2024.The three months to December were not much better, with annual growth at 0.
4%, as shoppers prioritised spending on food and drink over the festive season.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionRaeburn 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.”
M&S reports strong festive sales but says tax rises will lead to cost cuts
Marks & Spencer has hailed a “good Christmas” with strong sales of food but warned it would have to find new ways of to cut costs in the face of the government’s tax increases.The UK retailer said sales at established food halls rose 8.9%, making its the top-performing high street grocer over Christmas, according to the analysts Kantar. Equivalent clothing, home and beauty product sales grew by 1.9% in the 13 weeks to 28 December, even as the clothing market fell 2% before Christmas
Greggs boss defends price hikes amid anger over cost of sausage roll
The boss of Greggs has blamed wage, tax and food cost rises for a 5p hike in the price of its sausage rolls, after it faced a backlash over the decision.The UK’s biggest bakery chain has increased the price of its flagship product to £1.30, as part of an average 4% price rise on key items including coffee and doughnuts.The increases, introduced just after Christmas, were labelled “disgraceful” by shoppers with some saying they would stop buying the sausage rolls if prices rose further.Roisin Currie, the chief executive of Greggs, said the price rises were driven by the chain passing on increases to its wage bill, with two-thirds of Greggs workers handed a 6
Tesco enjoys ‘biggest ever Christmas’ as shoppers switch from rivals
Tesco has recorded its “biggest ever Christmas”, with the UK’s largest supermarket chain landing its biggest share of the festive shopping trolley since 2016.The grocer revealed that sales at established UK stores rose 4% in the six weeks to 4 January, with fresh food performing particularly strongly and clothing and homeware sales also up.Tesco now controls 28.5% of the grocery market and gained share from premium and discounter rivals over the 12 weeks to 29 December, according to the analysts Kantar.Ken Murphy, the chief executive of Tesco, confirmed increases to national insurance payments for employers announced in the budget would add £250m a year to the retailer’s wage bill
Royal Mail to celebrate The Vicar of Dibley with 12 special stamps
The Royal Mail is issuing 12 special stamps to celebrate the 1990s BBC comedy series The Vicar of Dibley.Eight stamps depict memorable scenes from the sitcom, including a guest appearance by former ballerina Dame Darcey Bussell, while four stamps show a Dibley parish council meeting.The Vicar of Dibley starred the comedian Dawn French as the chocolate-craving Rev Geraldine Granger and ran for three series from 1994 to 2000, followed by four special episodes between 2004 and 2007.The Royal Mail’s director of external affairs and policy, David Gold, said: “The superb writing and the warmth and idiosyncrasies of its characters made The Vicar of Dibley one of the most loved TV comedies of all time. We celebrate the series with new stamps revisiting some of the show’s classic moments
Rachel Reeves heads to China to build bridges, but a new golden era of relations is impossible
Rachel Reeves will fly with a delegation of City grandees to China this week as Labour seeks closer economic links with Beijing as part of its quest for growth.With the outlook increasingly rocky at home after a run of soft economic data, the chancellor is sorely in need of a positive story to tell.She appears determined to normalise the UK’s relationship with the communist superpower, despite mounting security concerns and a backdrop of growing geopolitical tension.In the past few weeks alone, the UK has expelled an alleged Chinese spy and friend of Prince Andrew, Yang Tengbo, while the US Treasury has accused Beijing of hacking into staff computers. Meanwhile, a lawyer for Shein – the online retailer founded in China and which is lobbying over a potential £50bn London float – was accused of “wilful ignorance” over its supply chain practices by British MPs
Permanent job vacancies in UK shrink at fastest pace for four years
Vacancies for permanent jobs in the UK declined at their fastest pace for four years last month, according to a new survey that adds to the gloomy economic mood.Amid febrile markets and weak economic data, the monthly jobs report from the consultancy KPMG and the recruitment firm REC shows many firms reluctant to hire.The employer survey suggested vacancies for permanent roles had declined at the fastest pace since August 2020, when the UK was in the grip of the Covid pandemic. Temporary vacancies also fell in December.The labour market was slowing for much of 2024
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