Frank Martin, chief executive of toy manufacturer Hornby

Thanet toy manufacturer Hornby has announced its chief executive Frank Martin is to step down.

Mr Martin has been with the Margate-based firm since 2001 and has overseen the introduction of a wider portfolio of brands in recent years including Airfix and Humbrol paints, sold across a range of international markets.

The model manufacturer's profits have been hit by the challenging retail environment, suffering a particular blow last year when sales of its Olympic merchandise were lower than forecast.

But the company has responded by introducing new products including the Quick Build concept across both Airfix and Scalextric brands and re-launching the Pocher model car range boasting classic Italian names, such as Lamborghini.

The process to appoint a new chief executive will begin immediately, overseen by chairman Roger Canham.

Mr Martin has agreed to stay on temporarily as deputy chairman to help with the transition, before retiring in June next year.

He said: "Hornby has faced significant global challenges over the past few years. However, I believe that we have laid the foundations to improve the performance of the Group and deliver value to our shareholders as we continue to drive our outstanding portfolio of brands."

Mr Canham said: "I am pleased that the business is in a more stable shape going forward. Our supply chain is improving and our brands remain popular. I am satisfied that the steps we have taken will lead to an improved financial performance in the future. Management succession is an important priority for Hornby. We have started the process to identify and select a new chief executive who will lead the next stage of Hornby’s development. I am delighted that Frank is staying with the Group during this transition, so that we will continue to benefit from his knowledge and enthusiasm."