Hornby raises more capital

[Howbi]

Hornby is raising funds for the third time in three years as it strives to remodel its business.

It has raised £12 million in an open offer and placing, part of which will be used to fund the £1.6 million acquisition of a 49 per cent stake in LCD Enterprises.

LCD controls Oxford Diecast, a toymaker that is majority-owned by Lyndon Davies, Hornby’s new chief executive.

Hornby said that, subject to raising funds, it had renegotiated its banking covenants, which would give it some breathing space as it tries to revive the business.

Good news I hope and good to see ambition to develop the business for a bright future.......HB

[debe45]

Isn't this just a backhand way to give the new CEO half of 1.8 Million.  He owns Oxford?????

[walkingthedog]

No. I think Oxford will breath new life into Hornby. 

[Bulleidboy]

Isn't this just a backhand way to give the new CEO half of 1.8 Million.  He owns Oxford?????

 

 

He is one of the shareholders in Oxford Diecast (LCD) - his wife in the other shareholder! Good for them. Hopefully as the new Chief Exec. at Hornby - a man with some modelling experience, and with SK back on board they may make some progress in the right direction. Time will tell - and I doubt they have forever!

[NWR-Gordon-4]

No. I think Oxford will breath new life into Hornby. 

 

Hornby and Oxford Diecast habe already had some partnership though. Look at Hornby's SkaleAutos range. Most, if not all of those diecast vehicles are made by Oxford Diecast. The few models I own from Hornb say 'Oxford' on the chassis of them.

 

GNR-Gordon-4

[Slornie]

Well the flurry of market updates and the half year statement were an interesting read!  Raising more moneys from Phoenix Partners to offset losses from recent contractions/stock sales (~£5m for the 6 months to Sept), additional capital investment (£1m) and the LCD/Oxford purchase.

 

The LCD part essentially means Hornby will own about 45% of Oxford Diecast (UK) and a minor stake in Oxford Diecast (HK) - which apparently part-owns a factory either in Hong Kong or China.  Not sure the factory has any immediate or direct benefits to Hornby but it's nice to think there's potential in that somewhere.

 

The tie up between Oxford and Hornby does make sense with Davies now essentially running both; nobody benefits if they end up undercutting one another.  And depending on how well Davies does as Hornby CEO we might well end up seeing Oxford assimilated into Hornby proper in future!  One of the acquisition terms is that if he's still CEO in three years time Hornby have an option to purchase the remainder of LCD for between £1.6m and £7m (depending on the latter's performance).

 

In terms of the additional £1m capital investment (new product toolings), my view is it will probably end up going towards the products for younger markets (extended Hornby Junior and similar in other brands??) and the European brands (historic underinvestment).

[96RAF]

HK die-cast factory could have a bearing on Hornby locos if they continue down the road of having metal bodies, which such a factory could provide.

Rob

[KPJunk]

Its a shame that there is no mention/hint of putting some more funding towards the further development / implementation of Loco Detection . I fear that it may be finally dropped all together as it must require quite a bit of funding to move on from its current position whatever it is .

I have no regrets whatsoever  on investing so much of my money in Railmaster / Elite and Hornby 4-5 years ago on the basis of Loco Detection information then available generally but am extremely disappointed in the current situation to the extent that I would consider going  in a completely different DCC  direction with another supplier for my layout ( only of course if this was available on the market !!) 

Keith 

[manofbristol]

hornbys had a bad timme these past ten years,but if the continue to make quality product they should survive.

A crowdfunding concept should be an area to research i know i would be keen to assist,prehaps using the collector as a central area.Also it would give Hornby better information on order size

the massive discounts given on overstocks is a major area to sort out,nice for us but deadly for Hornby.

smaller batches could be a way forward .I had to pay £130 for the se&cr tank and that was from a major dealer.Early buyers paid £77.

Finally with Oxford now involved see more metal as part of a model gives me more hope,far less plactic parts laying around.

Derek