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| Tuesday, 11 June, 2002, 15:40 GMT 16:40 UK Hornby profits from Hogwarts Express Hornby's best customers are enthusiasts and collectors The Harry Potter Hogwarts Express train has helped the toy company Hornby to record a leap in profits. The train set, made to tie-in with the first Harry Potter film, was a big hit with children.
The main reason for Hornby's success was an increase in sales of its model trains to adult collectors and enthusiasts. Baby-boomers The company estimates that three-quarters of its toy trains are now bought for adults rather than children.
Mr Martin told BBC News Online: "There's a whole generation of post-war baby-boomers who've got more time and disposable income on their hands and many of them are looking around for a hobby." He said model railways were at their height in the post-war years, so it was no surprise that people in their 40s and 50s were showing a renewed interest in Hornby trains. And membership of the Hornby Collectors Club has grown by 30%. Ford Mustang The company's Scalextric model car sets have not managed to keep pace with the model train sales. But Mr Martin said he thought the launch of a new track system and nine new cars would give the brand of boost. The new cars include Williams and McLaren Formula 1 cars and the US cult cars, the 1969 Ford Mustang and the Camaro. Adult enthusiasts also collect Scalextric, but about 75% of sets are bought for children. China move In the late 1990's Hornby was struggling with falling sales and had to take drastic action to survive. It cut jobs at its factory in Margate, Kent, and began to transfer production to China. Mr Martin said he thought the company was now benefiting from the move. He said Hornby trains were the first models to be built in China, where production began four years ago. And he thought the focus on greater authenticity and detail had made the trains more popular. Mr Martin said he had absolutely no doubt that transferring production to China was the right move. In the 12 months to March, Hornby's pre-tax profits increased 62% to �3.7m. City reaction In the City, Hornby shares closed 4.5p lower at 424p on Tuesday. The shares have proved one of London's best performers over the last year, closing at 135.5p on 11 June last year. | See also: 16 Nov 01 | Business 17 Aug 01 | Business 13 Jun 01 | Business Top Business stories now: Links to more Business stories are at the foot of the page. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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