by business editor Trevor Sturgess

Hornby, the Kent-based toy and hobby business that has seen profits dip in the past year, aims to pick up speed after signing a deal with the winning Brawn GP Formula One motor racing team.

The Broadstairs company with iconic brands such as Scalextric, Corgi, Humbol, and Hornby model railways, raised turnover by 11 per cent to £61.6 million in the year to March 31.

But it blamed the weak pound and supply chain problems for denting profits, which fell 32 per cent to £6.1m and led to the company deciding not to pay a final dividend, leaving a total for the year of 2.7p.

Sales in the second half of the year did well, with the company gaining widespread publicity for its Scalextric model motor racing products. It already partners McLaren, the team that helped Lewis Hamilton win the F1 drivers’ championship last season, and has just annnounced a new exclusive worldwide deal with Brawn GP, which is leading the way this year with Jensen Button.

Hornby also said it had entered licensing agreements with Disney to produce Scalextric products based on the "Cars" film series.

Airfix kits, Corgi and Humbol sold well, especially in the second half of the year. Hornby reported its first contribution of Corgi, the model business it acquired in May 2008. It said it expected further strong sales growth from these brands in the current year.

Hornby admitted that it had faced supply chain issues from its largest supplier in China but hoped the situation would improve following its acquisition by a Hong Kon company. The problems hit sales targets in mainland Europe.

Chief executive Frank Martin said: "This has been a challenging year for Hornby. As a result of the weak pound and continuing supply chain issues, our profits and margins have come under pressure."