LONDON (ShareCast) - Models and collectibles group Hornby continues to enjoy strong demand for its products and says it is confident of further growth despite higher input costs and a tougher consumer environment.

“Our businesses in the UK, mainland Europe and the USA continue to experience good demand for our products,” chairman Neil Johnson said.

“Sales to consumers via our network of concessions and via our retail customers have been encouraging and have held up well in a generally challenging retail environment.”

Hobby products such as Hornby’s tend to perform relatively well in times of consumer uncertainty, he said.

The integration of model car maker Corgi, acquired in April, is proceeding according to plan, but Johnson said given the inevitable time-lag between buying the Corgi assets and receiving supplies of new products from suppliers in China, earnings will be adversely affected in the first half of the current financial year.

“Although the group is operating against a background of higher input prices and in difficult economic circumstances, the brand, product and distribution strengths of the group, coupled with increased breadth of sectoral and geographic coverage give confidence that we are in a good position to continue to build our business during the current financial year and beyond,” he added.

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