Toy-maker Hornby issues profits warning

Toy-maker Hornby has issued a profits warning, saying earnings were de-railed by the pre-Christmas snow.

The model railway and Scalextric producer says the lower-than-expected sales have resulted in higher inventories at its retail supply chains.

The company, which is designing merchandise for the 2012 London Olympics, saw its share price fall 14% in early trading this morning.