Iconic model train firm Hornby says supply chain problems has hit its bottom line hard as it enters the key Christmas trading period.
The firm, based in Margate, says shipping times from its overseas factories have doubled to around 70 days and that costs had "soared". The majority of its suppliers are in the Far East.
It added it had "taken the pain" for lost sales as a result.
The firm also owns the Airfix, Corgi and Scalextric brands.
Revealing its financial figures for the six months up to the end of September, the firm said it has seen its statutory pre-tax profit of £17,000 in 2020 slump to a loss of £700,000 in 2021.
The firm also revealed it had been forced to hike prices on its goods to off-set the soaring container shipping costs.
Lyndon Davies, Hornby chief executive, said: “Demand for our products is higher than ever, therefore it is disappointing to have experienced the supply chain problems which seem to be easing but remain volatile.
"We are heading into our key Christmas trading period and right now it is hard to tell what the outcome will be for the full year results. However, we are as well placed as we can be with our order book 35% higher than it was a year ago.”