Hornby, the model train maker, has been hit by a problem all too familiar with real-life train operators - delays.

The company, which makes hundreds of replica locomotives and carriages, said yesterday that a slowdown in product development had put the brakes on sales in Europe, where Hornby has bought a number of businesses in the past four years.

Frank Martin, chief executive, said that Hornby's suppliers had found it difficult to cope with the sheer variety of trains that run across the Continent. He said the problems meant that Hornby had missed a potential £1million of sales, given the level of demand from model railway fans.

“The problem is all about the rate we have been able to bring product to market,” he said. “In the UK, our business is much more straightforward as we just cater for one market. In Europe you are trying to cater for all different types of locomotives, colour schemes and logos. We have found it has been difficult to get everything 100 per cent right first time.”

Hornby is bringing in new engineers and design staff to cope, but Mr Martin insisted that the business was performing “incredibly well”. Sales in the first nine months to December were up by about 20 per cent, with significant growth in the UK.

Hornby said that all its core brands - which include Scalextric and Airfix - were performing well. The group has signed a deal to produce a Scalextric set based on the new James Bond film Quantum of Solace.

It is also planning to relaunch an Airfix classic, the Nimrod, by the end of March. Hornby saved Airfix from collapse two years ago and launched its first new product for years before Christmas - a Dr Who Tardis.

Mr Martin said: “If everything had gone smoothly in Europe, then today sales would have been £1million higher but over a year we will be making sales of £55million to £60million.”

The shares rose 5p to 202p.

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