Toy manufacturer Hornby PLC
The maker of model railways, Scalextric car racing kits and Airfix models reported adjusted pretax profit of 10.8 million pounds as trading grew by 50 percent in continental Europe on the back of an improved supply chain.
Sales growth in Britain was more muted at 4 percent as the country's consumers rein in spending as disposable incomes are squeezed by rising prices, muted wage growth and government austerity measures.
The company, which is designing merchandise linked to next year's Olympic Games in London, said the sporting event would help to cushion the group against challenges in the wider economic environment.
Hornby, whose founder invented Meccano construction toys early last century, said first-half revenue rose 11 percent to 28.4 million pounds.
The company kept its half year dividend at 1.7 pence, the same as last year.
Hornby said its operating margins had improved as it sold more model railway products in Europe.
(Reporting by Michelle Martin; Editing by Paul Sandle)