Iconic collectables firm Hornby is set to cut more Kent jobs and move its distribution centre out of the county as part of an on-going restructuring.

It comes as the Margate-based firm revealed its losses had widened in the six months to the end of September. Its statutory pre-tax loss for the period increased to £5.1million from £4.9m during the same period in 2023.

However, revenues increased by 10% - up from £22.7m to £25m.

The group, which also includes brands such as Corgi, Scalextric and Airfix, has been seeking to turn its fortunes around in recent years with a string of moves to reduce costs. It says it is currently half-way through a three-year “turnaround” strategy.

This included “a significant headcount reduction in the Margate head office in September” with the restructuring saving some £1m. More cuts are expected, with the firm saying it looks to save £500,000 in central costs by July 2025.

Among its plans will be moving its logistics operation - currently handled by Global Freight Management Hersden, near Canterbury, to a new partner in the Midlands next year.

In a statement, it said the move will result in “greater flexibility in how we serve our UK digital customers, and will significantly improve our ability to support our international business and platforms like Amazon and eBay”.

Adding: “There are significant commercial benefits to be gained from relocating operations from Kent to the middle of the country, closer to a national delivery hub, and we will also see ongoing savings as a result of changes in process and new technology that come from the move.”

The latest financial figures also revealed its net debt had risen to £18.9m from £14.8m in September 2023.

As part of a rationalisation of its portfolio of brands, it recently sold off Oxford Diecast, which made model cars, in a deal worth around £1.38m.

Olly Raeburn, Hornby chief executive, said: ”We continue to make good progress with our turnaround strategy.

“The first half of 2024 has seen us make a number of strategic and structural changes. These will deliver clear operational efficiencies and significant cost savings.

“Whilst the impact of some of these decisions will not be fully felt until the next financial year, we are firmly focused on right-sizing the business for sustainable growth. Revenue performance versus last year has been solid, and we exit the half year with a clear, and aggressive, plan for maintaining that momentum through the critical Black Friday and Christmas trading periods.”

Earlier this year, Frasers Group - which also owns Sports Direct and video game retailer Game - upped its stake in the Thanet firm. It now owns 8.9% of the company, a move which should see more Hornby product sold through its retail outlets.

Hornby has been contacted for comment and further elaboration on the number of Kent job cuts.