MODEL group Hornby said yesterday that its trains steamed to their best Christmas sales performance since the mid-1970s. The group, led by chief executive Frank Martin, sold more than 100,000 model train sets in the run-up to the festive period, out-performing sales of its Scalextric slot racing cars. Hornby, which now produces all its models in China, attributed the success to renewed popularity of its model railways among 40-50 year-olds, who are buying them as a serious hobby. Hornby said all its ranges, particularly railways, had performed well despite generally difficult trading conditions in the UK. Sales of trains and the company's Scalextric slot racing cars outperformed the previous year in the three months to December. The group, which employs 140 people in the UK, said product ranges launched in early 2004 had proved very popular. It said its Live Steam model train and historic Scalextric racing car ranges had strengthened its position in the hobbyist and enthusiast market and were attracting new customers. Hornby said one of the main drivers of the pre-Christmas growth was the company's 120-strong network of in-store concessions, which were proving popular with enthusiasts and collectors. The group also said the performance of its new Scalextric digital racing sets, which allow cars to move at different speeds on the same track and to overtake each other, was excellent. Hornby added that its Spanish subsidiary Electrotren, which it bought last March, had launched more locally-oriented products and continued to perform well. The group, which bought some of the assets of liquidated Italian model railway group Lima last year, said the process of moving Lima production to China from Italy was going to plan. Hornby said it anticipated a good final quarter performance and forecast that annual pre-tax profits in the year to March 31 would meet expectations. Chairman Neil Johnson said the group's strategy continued to be to develop the Hornby and Scalextric brands. He added: "Coupled with this, our international acquisitions provide an excellent platform to replicate our UK success story in other major markets." Broker Baird expects Hornby to turn in pre-tax profits in the year to the end of March of £7.4m, against £6.5m a year earlier. Analyst Iain Daly said: "Hornby had a pretty decent Christmas against a mixed backdrop in the rest of the retailing sector." | 
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