Toy maker Hornby has warned it was likely to sink into the red over the full-year after tough trading over the summer and as its turnaround plan caused disruption to sales.

The Kent-based company, whose brands include Airfix, Scalextric and Corgi, said it expected to post a pre-tax underlying loss of £2 million.

The group said UK trading was impacted during July and August, but added the trend in UK revenue growth since early September has been "very encouraging".

European trading has been hit by the roll-out of new logistics and distribution systems and management changes.