Iconic firm Hornby Hobbies has secured a £12 million funding boost as it continues to turn around its once flagging fortunes.

The company, based in Margate, had been struggling, but after an overhaul of its management team in 2017, it has seen a growth in sales and last year delivered its first profits in nine years.

Founded in 1901, its brand stable now includes Hornby, Corgi, Airfix, Scalextric and Humbrol.

Now it has secured a £12m combined facility from Secure Trust Bank Commercial Finance, which specialises in lending money to businesses in the UK. Half will be for accounts, the other for inventory.

A facility is a formal funding programme and means the company will have access to the money as it looks to grow its sales globally.

The toy giant employs more than 200 staff with offices also in the US, France, Germany, Spain and Italy.

Lyndon Davies, chief executive at Hornby, said: “The past few years have been transformational for Hornby. It’s been our priority to keep the business on track and thriving for the millions of collectors and hobbyists across the globe.

"Since welcoming our new management team, we have expanded our workforce, enhanced our market knowledge, and established partnerships with the best manufacturers.

“The support that we have received from Secure Trust Bank is set to prove invaluable, and this new facility will help us to continue creating timeless products that our customers love."

Tony Young, regional sales director of London and South East at Secure Trust Bank Commercial Finance, added: “With this facility in place, Hornby can continue to thrive and invest in a legacy that started more than a century ago.”

In 2019, Hornby reported a revenue of £32.6m, which increased to £37.6m in 2020 and £45.9m in 2021.

Last year saw it turn a £300,000 pre-tax profit compared with a £3.4m loss a year earlier.