Supply woes knock Hornby off track

Scotsman

1st April 2009

Victoria Thomson

" Hornby yesterday warned that its full-year profits were set to fall by =A32 million because of supply chain problems.

The Scalextric and Airfix group said underlying pre-tax profits for the year to 31 March could fall as low as =A36.2m, from =A38.4m a year earlier.

Hornby suffered a =A32m sales hit as a result of delays in receiving shipments amid restructuring at it principal supplier in China. "

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Chris

It's not the size of the dog in the fight but the size of fight in the dog.

Reply to
Dragon Heart
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"Dragon Heart" wrote

by £2 million because of supply chain problems.

the year to 31 March could fall as low as £6.2m, from £8.4m a year earlier.

shipments amid restructuring at it principal supplier in China. "

Always a risk when you outsource your manufacturing - that and a significant loss of flexibility in production. For a fraction of the price Hornby paid for Corgi, they could have pruchased Sander Kan and been pretty much in control of their own production.

John.

Reply to
John Turner

I totally agree ........ but they could also have got into a bidding war with their rivals.

Also I feel their recent restructuring was totally dependant on having NO manufacturing facilities of their own.

Chris

Reply to
chris.brett58

I totally agree ........ but they could also have got into a bidding war with their rivals.

Also I feel their recent restructuring was totally dependant on having NO manufacturing facilities of their own.

Chris

Think thats very important so over the years they can move manufacturing to different countries. Also they may want to have more than one manufacturer.

cheers, Simon

Reply to
simon

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