Hornby Christmas profits `significantly` up on last year, thanks to James Bond

Hornby provided a rare bit of retail good news today, promising, in its trading update, Christmas figures "significantly" up on last year. Despite a worryingly muted November and early December, a last-minute splurge on Lewis Hamilton and James Bond Quantum of Solace Scalextric packs helped it to amass bumper sales - reports Times Online.

To be sure, the retailer is suffering like its peers: the weak pound has proved a big headache for the business, which buys from its suppliers in dollars. This and the increased caution from the shops that stock its products in the current grave economic climate, will see full-year figures — pre-tax profit is pencilled in for £6.8 million — come in at the lower end of analysts' expectations.

The group — whose shares fell 14 per cent in response — has taken steps to help it weather the storm. It has already raised prices and says that further increases are under consideration. It has also fixed a continuing problem with its main supplier in China, which should ease its flow of products into Europe. Meanwhile, the tendency of consumers to hunker down at home instead of heading off on foreign holidays could actually give a boost to sales. Hold for now.

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