REFILE-UPDATE 2-British toy maker Hornby H1 profit halves

(Adds dropped word "bus" in third paragraph)

* Cuts interim dividend

* Underlying pretax profit 1 mln stg vs 2 mln

* Turnover up 5 pct to 25.5 mln stg

(Recasts, adds more detail, interview with chief exec, shares)

By Sharon Lindores

LONDON, Nov 13 (Reuters) - Pretax profit at Hornby (HRN.L) halved in the first six months, mainly due to foreign exchange losses, and the British toy maker said it was on target for a 20-percent fall in annual earnings to 5 million pounds.

Chief Executive Frank Martin said he expected a better second half in line with forecasts and a stronger Christmas than last year, with full-year revenue up about 10 percent.

Sales of the Scalextric Brawn Formula One team of new world champion Jenson Button should do well and a Corgi model of a red London bus used in the handover from China to Britain for the 2012 Olympic Games would be a hit, he said.