Model maker Hornby has said it is on course for its first year of pre-tax profits in three years.

The company, whose brands include Airfix, Scalextric and Corgi, said strong sales have put it on course to make underlying profits of about £1.5 million, which is in line with market expectations.

The firm said sales in the last quarter had “significantly improved” compared with a particularly weak quarter a year earlier.

It expects sales to grow by 13% this year, but net debt stood at £7.5 million at the end of March, up from £7.3 million a year earlier, although down from £7.9 million in December.

It is the latest step in the turnaround since former Ladbrokes director Richard Ames joined as chief executive in February last year.

"The business is in good shape as we continue to make encouraging progress with our strategy to drive Hornby’s recovery...” - Richard Ames, Hornby

In November, the company announced losses had been cut to £516,000 in the six months to September, half that for the same period a year earlier.

The firm suffered heavy losses in 2012 after issues with its manufacturing supply chain in Asia and poor sales of products during the Olympics.

Since then the company has made huge strategic changes, including moving its warehouse operations from its Thanet base to Hersden, near Canterbury, last year.

The company has started moving its office staff from its historic headquarters in Margate, where it has been based for 60 years, to a new base in Discovery Park, Sandwich, and is expected to complete this by the end of May.

Finance director Nick Stone is to leave the group to pursue other opportunities later this year. The company said a search has begun for a replacement.

Chief executive Mr Ames said: “I would like to thank Nick for his contribution during this phase of the group’s recovery.

“A search has started for his successor and Nick will be involved in the process to ensure a smooth handover.

"Meanwhile, the business is in good shape as we continue to make encouraging progress with our strategy to drive Hornby’s recovery.”

Mr Stone said: “Much has been achieved since I joined Hornby. The company has made great strides in its strategy to re-position the business for growth and I am pleased to have been part of the process as I now move on to other things.”