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Is Hornby in Trouble?


Marto

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Not sure if others have noticed, but there is literally some sort of sale on every week here at Airfix. A Quick look at Hornby, Scalextric and Corgi shows similar promotions activities. Constant sales are normally a sign of a business in trouble, trying to raise cash and rid itself of excess stock to balance books/keep wolves/debt collectors at bay. This year has been pretty quiet on genuinely new mould announcements from Airfix.

 

What do others think?

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Possibly, but also too much stock left means they haven't met their sales forecast, but I'm sure everything is fine though. I'm not complaining about the sales. I'm doing my best to keep them afloat 🤣

Ian

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The issue is that they need to shift more units, it really is that simple. A tool doesn't cost any more if you sell 100,000 units off it than 50,000, and probably the head office overhead doesn't go up either.

I think they are right to acknowledge that in the Airfix division there's not a lot of future selling WW2 subjects to ageing geezers. I don't know what else they should be making instead unfortunately. 

The model kit proposition has not changed a lot in 70 odd years, which seems weird considering how much else has. I am not sure what a new generation would build in larger numbers than they seem to now, but probably their phones, AI, 3D printing and something contemporary would come into it. 

The sales are usually on in-stock items only which suggests to me that they need to clear warehouse space for the next inbound shipment.

Edited by john redman
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5 minutes ago, LTSR_NSE said:

Must be nice to be able to afford to ‘invest’ in a company that loses money simply to reduce your own tax bill. 🤦‍♂️

Its a funny one isn't it. Clearly not doing well enough to have investors foaming at the lips so lets pretend we're forever skint to avoid paying tax!

Edited by Marto
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When all's said and done, every time a company reports a loss, that was someone's money. Someone stumped up x million and what's now left of it is less than that. This can't go on indefinitely but it can go on until there are no investors left who can see a future. 

Things seem to have picked up last quarter, which is good.

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