Hornby is hoping that an unlikely combination of James May, the Top Gear presenter, Jenson Button and the 2012 Olympic Games will save it from the slump in sterling.

Profits at the maker of Hornby train sets, Scalextric and Airfix models plunged by 61 per cent because of the slump in the pound and difficulties at a Chinese supplier.

But the company hopes that a licence to make official models and souvenirs for the 2012 Olympic Games, and a deal with the F1 champion, will improve its prospects for next year. It also believes that the crucial Christmas period will be better than last year.

A BBC television series based on James May’s favourite toys features Hornby toys for three of its six episodes. Sales doubled in the week after the first episode, on Airfix. Frank Martin, chief executive, said: “After the first episode we saw an immediate uplift in sales through retail stores.”

Pre-tax profit slumped to £700,000 in the six months to September 30, down from £1.8 million last year, despite turnover for the period rising 5 per cent to £25.5 million.

Mr Martin said that the company had received a boost from the demise of Woolworths, which was Britain’s biggest toy seller. Former Woolworths customers are now visiting smaller, specialist toy retailers.

He added: “Woolworths had 800 stores that people would go into and buy toys on impulse. They’re now having to go into the remaining stores, where we are better represented — stores where we have our own concessions. We have seen very good demand from consumers over the last few weeks. We’re thinking at this stage, this Christmas will be significantly better than last.”

Hornby believes that its Scalextric brand will profit from the first-ever back-to-back British victories in the Formula 1 Grand Prix.

Last year it signed up Lewis Hamilton and McLaren, which it has followed up with Jenson Button and Braun. A limited edition of Scalextric will feature both drivers and their cars.

The company expects its licence to produce die-cast figurines of the as-yet unveiled 2012 Olympic mascot to be among its most lucrative products. A special edition “Beijing Bus”, a model of the London bus that travelled to China for the 2008 closing ceremony, is expected to have sold out by Christmas.

But the company has been hit hard by the slump in sterling. Mr Martin said the weakness of the pound cost it £1.6 million.

The company bought forward at $1.40 to the pound, fearing further depreciation of sterling. Yesterday, the pound closed just below $1.67.

Foreign exchange difficulties were compounded by the Chinese manufacturer of its model trains falling into financial difficulty.

Mr Martin said: “It had got into some financial difficulties. In order to support that supplier, we took price increases.

“There aren’t many vendors in model railways. It’s a very specialist sector. We couldn’t afford to see it continue with its difficulties, so we took a double hit”.

The Chinese manufacturer has been taken over by a Hong Kong company which has a sounder financial footing.

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