Nestled on a hillside overlooking the sea and the fishing village of Beer in East Devon, Pritchard Patent Product Co, trading as Peco, is marking 80 years as a leading manufacturer of miniature railway track. Founded in 1946, the family-owned company produces a broad range of track, wagons, and accessories in various gauges and scales, serving customers in 47 countries including Germany, the United States, Japan, and Australia.
Peco is well-known among model railway enthusiasts, partly due to its flagship magazine, Railway Modeller, which has published 900 issues since 1949. Notable figures such as Sir Rod Stewart, Pete Waterman, and Jools Holland have featured their model railways in the magazine. More recently, 26-year-old social media trainspotter Luke Nicolson, also known as Francis Bourgeois, visited the company, crediting Peco with sparking his passion for trains. A 7¼-inch gauge light railway that operates on the company’s site, complete with a station, tunnel, and gardens, opened in 1975 and is regarded as one of the best of its kind in the UK.
As the company celebrates eight decades in business, it has brought the production of its nickel silver rails back in-house, gaining control over nearly all aspects of its manufacturing after many years. Michael Pritchard, 78, chairman and son of the founder Sydney Pritchard, attributes the firm’s success to its focus on quality rather than promotion. Will Lane, chief operating officer, emphasized that unlike much of the hobby industry, where products are made in China, Peco continues to manufacture domestically. Pritchard added that customers perceive Peco’s products as superior in quality compared to competitors such as Hornby.
The company is also known for its customer service, maintaining a repair booth in its railway layout showroom where it often fixes track free of charge — sometimes for items purchased decades ago. While this commitment to quality and service has built customer loyalty, Lane acknowledged it is a financial challenge and "absolutely stupid," but it reflects the company’s principles.
Financially, Peco has faced difficulties in recent years. Although the COVID-19 pandemic initially boosted sales by increasing interest in hobbies, the surge in the second-hand market for locomotives and equipment subsequently dampened new product purchases. Additionally, increases in employer national insurance and the national minimum wage raised costs by approximately £400,000, pushing the company into losses and leading to the first redundancies in its history. In November, 18 employees, primarily those working at Pecorama — a railway-themed tourist attraction on half of the Beer site — were laid off. Pritchard cited significant running costs for the attraction, particularly during the off-season when visitor revenue is low. Pecorama continues to operate special events and recently attracted up to 300 visitors daily.
After three years of cumulative trading losses around £1 million, the company returned to profitability with a modest £25,000 profit on a £9 million turnover in the year ending April 2026, attributed to cost-cutting measures. However, Pritchard noted that warm weather months present a challenge, as train modeling is typically an indoor activity favored during cooler seasons.
Despite the challenges, the Pritchard family, including Michael and his sisters Hilary and Cherry, continue investing in the business. The company holds about £4 million in cash reserves accumulated during more profitable periods, and the family has not taken dividends since 2023. Over £1 million has been invested in upgrading finance and manufacturing systems, including the adoption of software from US firm Epicor. While this integration has helped improve cost controls, it required significant upfront expenditure and staff training.
Peco remains committed to maintaining its reputation for quality and customer service as it navigates a competitive market shaped by economic pressures and changing consumer habits.