Model and toy manufacturer Hornby has announced it will continue to target collector markets in Europe to reduce its dependence on the British market.
Trading for the company in the second half was as strong in the UK and good growth of continental subsidiaries in Spain, Italy, France and Germany was also reported.
In December 2004 Hornby acquired model train manufacturer Lima and produces a large range of European outline models, as well as US and British trains.
Chairman Neil Johnson said of the results: "Christmas sales were encouraging after a period of slow sales in the UK during the summer of 2006 and we therefore expect to report a satisfactory trading result for the current financial year."
Mr Johnson went on to say: "Strategically, we have continued to make very good progress in building a profitable hobby business across Europe. The acquired businesses have all performed better than last year as increased volumes have come on stream.
"There is excellent potential to continue this process and to leverage the brand strengths we have in the key European markets," he added.
The current year marks the 50th anniversary of Scalextric and the popular racing car game will be commemorated by a number of profit-boosting "limited edition products and promotional activities".
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