Hornby’s new chief executive revealed his first strategic move at the company with a warning about profitability and news that his interim chairman is stepping down.

Lyndon Davies, who joined the model maker from Oxford Diecast this month, said he had cancelled plans to offload large quantities of stock at a discount.

The move means revenues will be lower this financial year and there will be “a material impact on profitability”.

The Sandwich-based company, which has a visitor centre in Margate, had already warned in September that performance had been below expectations.

It comes as interim chairman David Adams indicated he is stepping down from the board to take up another appointment, although he will continue to chair the board until a permanent successor is found.

He was appointed in June, having joined the firm as a non-executive director in January 2014.

Senior independent director Martin George said: “On behalf of the board I would like to thank David for his skill and expertise in guiding the business through a period of significant change and for his invaluable contribution to Hornby over the last four years.”