Hornby profits fall despite London 2012 Olympics sales We are pleased that sales of our London 2012 merchandise are gathering momentum. We expect this unique license opportunity to contribute positively to profits in the short term and, through the increased distribution that we gain as a result of our involvement with London 2012, to provide an ongoing legacy benefit in substantially increasing our presence in mass market retail outlets. He also pointed to the development of a new Corgi "Toys" range and the launch of products based on the Olly the Little White Van cartoon as reasons to be optimistic beyond 2012. Sales in Europe rose 21pc as demand for model railways gathered pace, while revenues in America edged up to $4.4m from $4.2m in 2011. However, in the company's core UK market, sales of Scalextric were below the previous year "as a result of lower consumer demand and cautious buying behaviour among our retailers." However, Hornby is optimistic that the launch of a Star Wars-based Scalextric range and the introduction of a number of products celebrating the 50th anniversary of the James Bond franchise can "rebuild volumes." Mr Martin added: "There is no doubt that there will continue to be pressure on consumer confidence for some time to come." A final dividend of 2p will be paid on December 21. The shares rose 4pc to 77p in early trading.