Hornby Chairman Facing Calls To Go

Hornby Chairman Roger Canham who has been in the post for four years under pressure to step down after Investors accused of overseeing the destruction of the toy makers value Hornby , s second biggest shareholder Alexander Anton owns shares of 20pc stake looks like to be new chief  said Hornby is old fashioned and thats part of the problem 
Also stated Hornby toys have great product potential 
Shares yesterday fell 0.7pc, or 0.25p to 32.75p But now has improving trend

Novicman

Hi David,

Not quite correct. Alexander Anton, who is a minor shareholder with experience in boardroom coups, was asked by New Pistoia, who own 20% of the company, to look into what's been happening. Under the current chairman, Roger Canham, the company has lost £35M in 5 years. The majority shareholder (with 34%) is Phoenix Asset Management Partners, the chairman of which is also Roger Canham. The big issue is under-performance and shareholder value (specifically Hornby has under-performed AIM by 95%). Hefty salary packages, no dividends and share prices not exceeding inflation is a potentially disastrous cocktail that institutional investors such as New Pistoia will not tolerate.

Anton wants to return to the toy market, not the hobby market. "The turnaround plan talks about retreating from toys to the hobbyist  market which is an ageing market. If you're not introducing youngsters  to the toys, they won't have the same affinity to the company in years to  come. I don't think this is a sustainable strategy. It is only going to  continue to destroy shareholder value." Oh dear.

Forget the trains, it's all about the money and a fundamental difference in management philosophy. Phoenix are in for the long-term. New Pistoia are probably looking at a quick asset fire sale and ROI (theirs).

Buy 'em while you can get 'em (not the shares, the trains, get 2 of each, one for spares, just in case Hornby does go turtle).

Nigel

Hi Nigel Sorry if information posted was wrong  
Taken infomation from a the Daily Mail but abbreviated
Thinking of buying Hornby Royal Scotsman with TTS sound 
Nigel was waiting for Pontpridd model rail exhibition show  But can see your point
Thank you for reply

Best of Luck

Noviceman

The Daily Wail usually has a grain of truth to its reporting but editorialised to achieve copy sales.  Which is, after all, what keeps them in business.
Hornby isn't out of the woods yet by any means and might yet not emerge in recognisable form.  If they retreat from the hobby sector the void will be filled by the lean up-comers who already have product placement, short lines of communication and minimal overheads.

DJ Models, Rapido / Realtrack, Oxford Rail and their like are well placed to fill any future void in the marketplace though by no means at the same level of production and variety.

Many of us probably sense that the market is now over-served and with price rises returning the hobby to its former place among only those with greater disposable income we might expect a major player to withdraw.

Hornby products are being heavily discounted through numerous retailers.  The suits at Sandwich have probably dictated that a(nother) fire sale to shift slow-moving stock and raise acutely-needed cash is the only way today.  What of tomorrow?  Let's see.  Fingers crossed.  There's still some good stuff coming out of red boxes.

Regardless of their ability or otherwise to compete in the current market place in terms of overall quality, price and customer service, it would be a very sad day indeed if "Hornby Trains" were no more.

I admit to not helping their financial security much personally, but Hornby is to model railways what salt and vinegar are to fish and chips.

Surely you've tried mayo with frites since you've been here Peter?

Bill :)

[user=1814]Longchap[/user] wrote:

Surely you've tried mayo with frites since you've been here Peter?

Bill :)

One has to Bill - decent fried fish is as rare as hen's teeth………… ;-)  I am rather partial to moules frites so all is not totally lost ………………… :cheers

The only thing I've come to cherish here from back there is my rapidly dwindling supply of English tea bags. I'm down to the last two or three hundred and hope they last until I can take a car back to Blightly to restock. Moules frites .  .  .  .  love 'em

:cheers

Bill