Model toy company plans Corgi comeback

Airfix and Scalextric owner Hornby today revealed a 17% jump in profits and said it was well advanced with its next project to revive car firm Corgi.

The model group recently spent £7.5m (€9.4m) on buying Corgi, which sold millions of cars at its peak but failed to make a profit last year.

Hornby chief executive Frank Martin said plans for a relaunch of the brand were well advanced, adding: "Corgi retailers and collectors are delighted that Hornby has taken over. We are confident that we will quickly rebuild sales, profits and market share."

Hornby, whose other brands include Airfix models and Scalextric toy car racing, posted a 17% hike in pre-tax profits to £9m (€11.3m) for the year to March 31. Sales were 19% ahead at £55.7m (€69.8m).

Chairman Neil Johnson said he was confident of further growth this year despite a slower economy. "Notwithstanding the general economic downturn in many of the markets in which we operate, we are anticipating another year of good progress," he said.