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  • Hornby Shares Take a Hit

    Slightly older news but Hornby is in trouble.. again...
    http://www.bbc.com/news/business-35538800
    http://www.theguardian.com/business/...unds-this-year

    Personally I am not sure this means that things are beyond saving. I work in the area of software management of businesses and I can see where if there is a major mess up in implementing it could case a massive amount of problems for deliveries.

    I think their ARC series is very cool and the advertising is finally getting to where it addresses the demands and desires of a greater majority of racers out there.

    The departure of Adrian Norman is of course slightly foreboding but almost all manufacturers have gone through tough times... still, if you love Scaley... they need our support.

  • #2
    one mo time...

    I have said this several times on this forum, I have a fear that the slot cars we all enjoy are in trouble.

    I see too many "seasoned" and "NIB/unused" cars that are up for sale, and a general malaise in the industry, all of which foreshadowed the first time under in the 70's.

    One should study history, least you be doomed to repeat the errors of the past!


    Bill

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    • #3
      Shares have edged up a little this morning on the London Stock Exchange after the resignation of the CEO, Richard Ames.

      Maybe a new CEO might turn things around?

      David

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      • #4
        Hornby model railways (railroad in US ?) are a far larger part of the Hornby Hobbies' business than Scalextric.
        So the market's perception of the health (or otherwise) of the railway business is the biggest driver of the share price.

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        • #5
          Originally posted by DVD3500 View Post
          Personally I am not sure this means that things are beyond saving.
          I would agree with you on that. If the numbers are a result of something that happened in the past [delivery problems], then it's kind of expected to have an effect on things. Right?

          Sounds to me like it's a matter of them covering their bases, getting out and putting together a better delivery network and getting back to it.

          If it were the "oh, sales are so slow we have to lay off 3/4 of our staff and cut brands", then that's a different story.

          I just wonder if the bank is going to come after them with that kind of debt before they can do something about it.

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          • #6
            True, without looking at their exact numbers we won't what part of the business is affected in what ways for sure...
            Let's just hope things go well...

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            • #7
              Scalextric will survive, they have only 7 core employees... http://www.speedhunters.com/2015/11/...th-scalextric/

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              • #8
                No they only have 6.. Adrian left :-(

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                • #9
                  No value is celebrating..the Hornby share price is trading about 30p now..may yet be life in the old girl so to speak..information by business line is hard to glean, but I'd guess Corgi the one least promising. Trains, I can't say, but surely the market is aging more than slot cars. Airfix has been well received under Hornby and plenty of money put into new improved offerings...scalextric might be able to stand on its own..but for its own missteps. However, the apparent lack of permanent employees makes me wonder exactly what the asset base might be..there is a huge element of goodwill on the balance sheet..there are likely patents, licensing rights...but if the moulds are owned by offshore makers...then the volatility on shares makes sense...scalex or Hornby could go and someone pick up the pieces quite easily.

                  Far better to look for a little fresh blood, working towards improved dealer relations and getting back on track. The hobby needs two mainstream makers..and every encouragement given to attracting new enthousiasts, youth. And if that doesn't do it, well I am old enough I probably will have a hobby as long as I need worry...

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