MODEL railway firm Hornby signalled an upturn in fortunes after new products such as its Flying Scotsman train set boosted sales.

The company, with brands including Airfix, Scalextric and Corgi, made a loss of £516,000 in the six months to September 30 but the deficit was half the level seen a year ago.

Sales increased by eight per cent to £24.2 million in the six month period, driven by an 18 per cent rise in its model rail division after the launch of new products in the UK and Europe.