Iconic model railway brand Hornby says the last six months have proved "a difficult trading period" as it gears up for what it hopes will be a profitable festive season.

The company, based in Margate, updated investors on its first half-year results for the six months ending September 30.

In addition to Hornby, the company also owns brands such as Corgi, Airfix and Scalextric.

The figures revealed that while revenues have increased by 3% - rising to £22.4million (from £21.8m in 2021) - pre-tax losses for period increased to £2.9m, compared to £700,000 last year.

Net debt has also increased from £0.2m to £4.9m

However, bosses say the company is hoping for a more encouraging second half of the year and says it is well placed to avoid the supply chain problems which dogged its performance this time last year.

Lyndon Davies, Hornby's executive chairman and out-going CEO, said: "Revenues have marginally increased in the first half of a difficult 2022/23 trading period.

"A year ago, sales in the second half were held back by supply chain disruption, but we are now in a stronger position, having taken strategic decisions to raise stocks to support sales and avoid shortages.

"Our order book is very strong and higher than a year ago. We are heading into our key Christmas trading period and right now it is hard to tell what the outcome will be for the full year results.

"It is over 40 years since the UK last experienced an inflationary shock on the scale we are witnessing today; and the UK economy of the 1970s - with its reliance on highly subsidised and geographically concentrated heavy industry - was incomparably different to the economy of today."

Earlier this month, Hornby appointed former Paperchase boss Olly Raeburn to take over as CEO from Mr Davies in January. Mr Davies will continue with the firm in his role as executive chairman.