British toy company Hornby says its move into the digital age is helping it to cope with tough UK market conditions.
Hornby, best known for its model railways and Scalextric racing cars, said it made a pre-tax profit of £8.2m in the year to the end of March, up 8% on the previous year, though turnover was down 2% at £44.1m.
The 2004 launch of a digitally-controlled version of Scalextric cars followed by the 2006 launch of a digitally-controlled model railway have boosted sales and secured wider distribution worldwide, the company said.
It added that a downturn in UK consumer spending slowed down trading in 2005 but measures to reduce costs had offset the worst effects. The company, therefore, has relied on European expansion to achieve growth.
