Hornby Share Discussion Threads

[holts] 10/2/2016 21:03

There is actually a lucrative market , the problem is Hornby drafted in some whizz kids who have tried to run it as a toy rather than specialist niche business , in their strategy they alienated their trade customers and took a long while to sort out supply problems ,the latter in fairness they have done and have a supplier of quality once more . BUT , when you slash margins to your trade and try and compete with them and you really know nothing about the market you let others through the back door .

A myriad of small suppliers have entered the market and together they have stolen a huge chunk of sales , because they have stuck to traditional trade margins . The name is invaluable and can be rescued , but it will require a hold hands up admission of sorry we got this wrong .

Forward orders will be garbage , on the main brand no catalogue , one now being rushed out , no range review down at HQ as used to be the case , where they would take substantial orders for whole year . The toy fair where most of their customers don't go they attended , at no doubt some cost , why ? Because they think they are a big brand toy company .

[bozzy_s] 10/2/2016 19:27

And where did that £15m go? Placing last year, at 95p, to raise £15m. In hindsight a good move. Great result for the company. Total debt was about £7.9m, so the placing would pay off the banks and still leave a few million for working capital.

How on earth are they, just 8 months later, talking about breaching banking covenants when the debt could have been repaid in full via placing proceeds? Why are the bank still involved at all?

[andy pipkin] 10/2/2016 19:17

It seems to have gone from O gauge to Z gauge. Shame. I guess kids these days only want a screen.

[arthur_lame_stocks] 10/2/2016 19:08

The problem is will they be able to get another RI away so soon after the last one has burnt investors? I think this has further to fall, even if it bounces a bit from here.

[gears] 10/2/2016 18:36

A very bleak statement so soon after the new issue of shares. It's hard to see much upside without a bidder.

[eastbourne1982] 10/2/2016 17:52

Sad state of affairs and I feel sorry for holders however anyone holding these was probably doing so for the wrong reasons, possibly sentimental more than anything else.

You don't have to be brain of Britain to realise this is a tough sector in this day and age and the valuation prior to today seemed way over the top given the financial position and previous trading statements.

This may bounce a touch from here however you'd be brave to invest here long term with the market the way it is and Hornby's finances.

[rubberbullets] 10/2/2016 17:39

will be taken over by the banks and shareholders get nada

nobody wants a model train set

[edmondj] 10/2/2016 16:46

Typical stress response: denial!

[my retirement fund] 10/2/2016 16:23

Why are posters being given red arrows for stating the blooming obvious - That its highly likely to go bust ! ?

[loverat] 10/2/2016 16:15

Looks a similar type movement to DX. when that fell.

80p to about 23p over a day or so.

Down to 14p back up to 23p

[blueball] 10/2/2016 15:57

Best buy @9p imo.

[edmondj] 10/2/2016 15:12

Doubtless managerial errors, but there is a direct parallel with Creston (CRE) seeing a fall-off in January:

...in the first few weeks of 2016 the Group has been advised by a number of clients, across multiple-industry sectors, of project delays and cuts. Some of these relate to client specific circumstances, and others are due to increasing concerns that some of our clients have about the trading outlook for their businesses given the current uncertainty in the global economy. This will lead to significantly reduced revenue growth for the Group in the fourth quarter compared with the Board's expectations, and given the proximity to the financial year-end, there is limited opportunity to mitigate the impact on operating profit from the reduced revenues.





Hornby is today's 'shocking profits warning' in quite a line of them recently, things are getting tougher.

[holts] 10/2/2016 12:36

This is nowt to do with economy , this is a business re organisation by people who do not know about their market/customers and have shot so many holes in their feet they no longer need shoes .

[volsung] 10/2/2016 12:17

They should link up with Thomas the Tank engine. Still very popular in my house although the kids have moved on to Tolstoy.

[blueball] 10/2/2016 11:03

Avoid it could fall 50% from here.

[simon templar qc] 10/2/2016 10:30

I have occasional followed this one over the years but not tempted to invest it was a curiosity stock so far as I was concerned. I don't like the update one bit it has all the hallmarks of bust. Take care.

[williemanjaro] 10/2/2016 09:33

Holts---Royaloak---like you,I always keep an eye, but talk about boom and bust.

First there was the recovery and then there was a moment in late 2003-2005 when you thought Hornby might just go places. Alas that over ambitious acquisition trail was not remotely matched by a solid business plan--the business plan couldn't keep up with events!

Cant blame Frank Martin now but presumedly the damage was done before he left.

what a mess...

[tsmith2] 10/2/2016 08:53

Avoid...suspect RI

[royaloak] 10/2/2016 08:49

Had been looking for years for a reason to buy back into these, could not find one, the people who post on this Board have far more knowledge than the current HRN management, hope no one has been hit too hard.