Model railway firm Hornby has concluded an agreement to extend its borrowing to £18 million.

The company, which is based at Discovery Park in Sandwich and runs the popular visitor centre in Margate, previously had a £6m facility with Barclays.

But earlier this year the firm, which also makes Scalextric, said poor sales at the start of 2018 meant it breached the terms of its agreement with the bank.

Barclays said it would not take action, but Hornby chiefs confirmed the company was seeking alternative loan deals.

It will now be replaced by two new deals - a £12m agreement provided by PNC Business Credit and £6m secured from largest shareholder Phoenix UK.

Both facilities are secured by debentures on Hornby PLC and Hornby Hobbies Limited.

A spokesman for the firm said: "Whilst the board believes it is unlikely that we will need to draw down on the entire availability, the board is of the opinion that having a robust balance sheet is important to give our customers, suppliers and retail partners full confidence in our ability to execute on the current plan and continue building beyond.

"The group is currently in a net cash position following the year end."