Hornby has announced problems with its supply chain has had an effect on sales figures.

The model railway manufacturer has issued its second profit warning in the last 18 months following delays caused by its Chinese supplier. It states that because of the problem, trains would only account for 61 per cent of sales in the UK and 68 per cent in Europe, compared to the anticipated figures of 88 per cent and 80 per cent respectively. 

Executive chairman Roger Canham announced the company has negotiated a parting of ways from the supplier, adding:"It's painful to get it done in the way we have, but it does draw a line under what has been a very difficult period for the business." He stated he expected that the business would return to fortune soon.

Hornby, which also owns the Scalextric car and Airfix military aircraft model brands, saw its share price fall seven per cent as a result of the announcement.