Toymaker Hornby has said that sales for the financial year are due to be below expectations after major supply delays led to a £1 million loss.

The issues, which have been on-going in recent months, have now “finally” been resolved, with Hornby ceasing trading with its major supplier of model railway products.

"While the outlook for the year is disappointing, we have used this year of management change to make some important decisions that we are optimistic will enable us to return to growth," said chairman Roger Canham. "Importantly, we have now reached a conclusion with our previous major supplier. I am confident that this draws a line under this painful period of the group's recent trading."