Hornby Share Discussion Threads

[holts] 13/9/2017 10:41

And another one bites the dust .



trouble is in recent history just when you thought it could not get worse along comes another one with no 'feel' for the business.

[clocktower] 06/9/2017 16:37

HOLTS - Pity they do not listen to the independents, they are the core to any business and the wise heads. They know best attitude of the board, is the problem with so many companies and they actively work to destroy the small retailer, and only when it is to late realise and cost the damage done.

[clocktower] 06/9/2017 10:59

This is what they said on 21.06.17 - "The current financial year has started positively and we are well placed to achieve the Board's expectations for the year."

So, one month later had there been any change which they did not share with stakeholders?

[clocktower] 06/9/2017 10:45

Back off the rails today, could the fall trigger the bid to buy the balance of the stock that Phoenix does not own.

Only two months ago the board were saying the offer did not reflect an adequate premium for control and "Significantly" undervalued Hornby and its prospects.

Well, it now looks as though they are a bunch of buffoons that are incompetent and have mislead stockholders, as one can only assume that sales surely must have slipped prior to those statements around two months ago.

Clearly, should have taken the offer Phoenix made and come out with a small profit, the only hope now is a bid from a third party, or cut and run. Hmmmmmm

[clocktower] 02/8/2017 14:52

Looks like the trains starting to creep out the station today, how long before it reaches the express lines?

[clocktower] 31/7/2017 11:18

Since the expiry of the offer, few buy transactions have occurred but today sees a few small buys going through at above the bid offer.With so little stock available I guess it could jump substantially on further good news of profitability or an offer that would be unlikely to be refused by the major stakeholder.

[clocktower] 26/6/2017 12:06

HOLTS - From you last line suggesting that they have only improved a little leads me to guess you are a customer/retailer, that maybe the case but an improvement all the same, however small and at least a step in the right direction, even by recognition of the companies past failures is a positive imo.

I agree with what you say but while they may not want the likes of Mattel to buy the business, if the price is right it would I expect be accepted.


One of the things I took note of in the last accounts was - "Hornby, Airfix and Humbrol are three of our most profitable brands which are particularly strong in serving our important hobby customers. There are significant opportunities to further improve the performance of these brands by continuing to improve execution, recovering lost market share, increasing margin and improving the brands' appeal to new customers."

With those Brands now being Profitable that now leaves Scalextric`s as the major loss maker as they also seemed to highlight -

"The Scalextric brand primarily delivers slot car sets to consumers through multiple retailers and as such is a relatively low margin business. There are significant opportunities to improve Scalextric margins and to carefully grow volumes through improved innovation and marketing support."

There clearly is little short term downside imo but if a bid comes a very quick uplift, and it could be significant. If a bid does not come at this time, it is likely that once the company publishes or forecasts a profit, the stock will jump anyway, as they wish the company remains on the AIM market.

[holts] 24/6/2017 09:46

They were simply obliged to make the offer under the rules just a technical event, I don't think they want the whole company . It equally certainly does not want to be bought by the likes of Mattel . It is a niche hobby business that lost its way simply because of the wrong decision in not buying the manufacturer when it came up for sale and then having to find a new one capable of doing the job .

Trouble is this was not seen as the problem , it was compounded by bringing in people who knew nothing about this sort of business ,they made all the changes their MBA type degrees lead them to think were necessary , resulting in alienating their trade base , and dismantling many of the joined up elements that made the business work previously , which is still the case even now .

They do have a quality manufacturer now , but at a premium , saying they have re connected with the trade base , not so sure , its improved a little .

[clocktower] 22/6/2017 14:44

At lot more upside to this yet I suspect:

From todays RNS:

"The Board considers that the mandatory cash offer of 32.375 pence per Hornby share significantly undervalues Hornby and its future prospects. The Board also notes Phoenix UK Fund's belief that Hornby should maintain its AIM Listing and its stated support for maintaining a board of directors that complies with the QCA Corporate Governance Code."

How long before a formal bid comes along now that is acceptable to Phoenix is the crucial question.

[clocktower] 21/6/2017 12:26

Canham gone.

[gozo] 21/6/2017 12:16

No rush....the smell has only just died down.

[clocktower] 21/6/2017 12:14

Agreed sinkyj but can the board now fend off a counter bid if one were to come? Where would that leave them and at what price would they be happy to move over?

[sinkyj] 21/6/2017 11:52

Sounds like a win for the home team, CT. I'm sure the board will be happy. The employees maybe less so.. "Back in April, investors Ian Alexander Anton and New Pistoia, between them owning 20 per cent of the company, called a requisitioned general meeting (RGM), with two resolutions: to boot chairman Roger Canham off the board, and to elect Anton himself in his place.Canham is also non-executive chairman at Phoenix."

[clocktower] 21/6/2017 11:50

gozo, maybe put it back in LWRF at some point in time. :-)

[gozo] 21/6/2017 11:46

Have you sold?

[clocktower] 21/6/2017 11:23

21 days is a long line to travel down, and one that regardless of the outcome a small profit is a profit.Game on all to play for now.

Will the board be happy with this situation?

[gozo] 21/6/2017 11:14

21 days worth of track left unless a counter offer emerges.

[sinkyj] 21/6/2017 11:01

Wednesday, extending earlier gains as Phoenix Asset Management Partners launched a mandatory 32.375 pence a share offer for the shares in the company it doesn't already own, valuing it at £27.4m.Phoenix UK Fund Ltd. has agreed to buy 17.6m Hornby shares from New Pistoia Income which it will then transfer to Aurora Investment Trust, another fund managed by Phoenix. Following completion of the acquisition, the Phoenix concert party will hold 46.7m shares, or 55.2%. This will trigger the mandatory offer as required under Takeover Panel rules, meaning Phoenix UK Fund will be required to make a cash offer for the remaining shares the concert party doesn't already own.

[clocktower] 21/6/2017 09:51

At the station, getting loaded, and ready to get a bit of steam up it seems to me. :-)

[chrisdgb] 21/6/2017 09:33

takeover............

[clocktower] 21/6/2017 09:23

Good to have you on board for the ride sinkyj, might be a bit bumpy on the track at first but I am expecting a long straight on the track before very long.

I will add on any weakness today.

[sinkyj] 21/6/2017 09:11

I joined you for a few yesterday, CT. Lightened my Lightwave exposure so to speak. Looks an interesting stock to be on. Good old brand.

[clocktower] 21/6/2017 09:05

It might take a bit of time to sink in with some investors but the board have done a good job and re-established its business with smaller retailers rather than just focusing on big box movers that want you to work for nothing. If the product sells they will not want to miss out on the product even if they have to pay the asking price.

The brand alone is money in the bank imo, I am also expecting a bid at some point in time (not to far away hopefully).

[gerryjames] 21/6/2017 08:59

Yes that is eye-catching. Also,

"Hornby Loss Narrows But Sales Decline In First Year Of Turnaround Plan"

A misleading headline from Alliance News. This was due to a reduction in scale and expenses. A planned part of the turnaround and explains the decline in sales.