Profits at hobby giants Hornby have raced ahead in the past year.

The Broadstairs-based company, behind model trains and Scalextric cars, has reported profits up 17 per cent to £9m on sales of £55.7m - up 19 per cent - in the 12 months to March 31.

Overseas sales were strong, with turnover and profits up in Europe and only slightly down in the United States.

The Hornby Digital Control System for model railways gained market share and its digital Virgin Trains Pendolino set sold well. A new entry level "Railroad" range aimed to appeal to younger people and was proving a success.

Hornby has acquired several big brand names in recent times, including Airfix, Humbrol, and, more recently, Corgi.

The company reported that the first two were performing well ahead of expectations and it was making good progress with the integration of Corgi. It is also about to launch a new series of Scalextric sets with a James Bond theme

Hornby said that despite economic difficulties in many of its markets, it anticipated another year of good progress.

Frank Martin, chief executive, said it had been another excellent year for Hornby and the group was always looking out for other brands that could strengthen its portfolio.

"Our strategy to build a broader base of exciting product ranges selling in more countries is well on target," he said. "We have acquired a series of well-known hobby brands that have responded well to our fresh investment and active management."

He added: "Despite the challenging market conditions, the group is confident it will continue to deliver further growth."