Hornby, the model maker, has raised £15 million after changing markets on the London Stock Exchange and revealed it has returned to the black in its full-year results.

The company, which moved its head office from Margate to Sandwich this year, has moved from the main market to the AIM, where it issued more than 15 million shares at 95p each.

Part of the funding will be used the cash to pay off £8 million of Hornby’s bank debt, with the rest used to fund its growth strategy and for working capital.

The company also revealed underlying profits of £1.6 million in the year to the end of March, a turnaround from a £1.1 million loss in the previous 12 months.

The firm, which runs its warehouse operations in Hersden, near Canterbury, said revenues grew to £58.1 million, up 13%, and slashed its overall loss after tax to £100,000, down from £4.4 million a year earlier.

Hornby, whose brands include Airfix, Scalextric and Corgi, has also agreed a new revolving credit facility of £10 million with Barclays for four years.

The company revealed last month it expected a return to profit for the first time in three years amid a turnaround led by former Ladbrokes director Richard Ames, who joined as chief executive in February last year.

It launched a crowdfunding initiative to recommission old Airfix products last month and has launched a new E-Commerce Team in Shoreditch, London.

It said it has improved the volume and quality of products it receives from its Far East vendors.

Mr Ames said: “I am pleased to announce that, after a year of hard work and numerous challenges, Hornby has returned to an underlying profit.

“We are improving product deliveries and quality from our supply chain, and I remain confident that the turnaround plan will continue to deliver further improvements.

“I am proud of what we have achieved during this phase of Hornby’s recovery.

“Next year will be another one of change for the group as we push for further growth.

“We are now heading in the right direction and the outlook has been greatly improved by the new equity and debt proposals announced today.”