Hornby — the maker of model trains, Airfix kits and Corgi die-cast cars — has announced that it will shut its warehouse in Margate and move to larger (and more modern) premises at the Lakeside Business Park in Hersden, north east of Canterbury.

The Margate facility was built for Triang Railways and opened in 1954; the company merged with Hornby in 1965, and the latter made its products at the site until the 1990s, when it transferred manufacturing to Asia and the old factory became a warehouse.

Chief executive Richard Ames said the decision has been brought about by “tired warehouse conditions and the need to modernise and grow the business.”

He confirmed that the office staff will continue to work in Margate and the move will not result in any redundancies.

At the end of last month, Hornby reported that its pre-tax losses had increased to £4.6 million (from £2.5 million) for the financial year to the end of March.

The company was hit by falling sales as a result of manufacturing problems, plus the closure of Modelzone (the High Street retailer) and a £1 million fall in the value of foreign currency being held to pay suppliers.

Mr Ames, who joined the company in April, said: “Hornby has been through a difficult period. While I am under no illusion about the challenges ahead, I am confident that I can lead the group successfully during this next phase of our development.

"It is an important time for Hornby, as the business strives to reach its full potential.”