Moccasin Posted February 23 Share Posted February 23 Noticed today that the price of Hornby shares has gone up sharply today (up 5p at one point). Guessed that there must have been some announcement and, sure enough, found this announcement about Frasers Group taking an 8.9% stake in Hornby https://polaris.brighterir.com/public/hornby/news/rns/story/w0j3qpx There’s a fair bit to unpick from the statement but tie-ups seem possible. Frasers have logistics and warehousing as well as there’re retail brands and I guess it’s possible that Frasers will be hosting their mooted retail stores. Not a fan of Mike Ashley (few are in Newcastle!) but this seems like a positive move. Link to comment Share on other sites More sharing options...
SteveM6 Posted February 23 Share Posted February 23 Look out for a Sports Direct branded loco pack with Everlast wagons. Free hoodie with every purchase. 1 Link to comment Share on other sites More sharing options...
Moccasin Posted February 23 Author Share Posted February 23 Well the Coca Cola deal has apparently ended, so who knows! Link to comment Share on other sites More sharing options...
Rallymatt Posted February 23 Share Posted February 23 (edited) Mike Ashley is certainly on a spending spree. He has just hoovered up the IP of failed Cycling/Running/Activity group Wiggle/CRC to add to Evans Cycles he bought in ‘21. Are none of my interests safe from this man? I’m half expecting him to buy ‘epic views’ and all the nice food next! Edited February 23 by Rallymatt Dyslexic Keypad 1 Link to comment Share on other sites More sharing options...
Moccasin Posted February 23 Author Share Posted February 23 22 minutes ago, Rallymatt said: Mike Ashley is certainly on a spending spree. He has just hoovered up the IP of failed Cycling/Running/Activity group Wiggle/CRC to add to Evans Cycles he bought in ‘21. Are none of my interests safe from this man? I’m half expecting him to buy ‘epic views’ and all the nice food next! Had forgotten he’d/they’d bought Wiggle. Doesn’t look like they’re going to buy the whole lot but do wonder if they’ve been talking on other matters, either logistics or retail. Maybe Hornby buying a stake in Warlord has widened interest in them. Link to comment Share on other sites More sharing options...
Rallymatt Posted February 23 Share Posted February 23 With Wiggle/CRC it was announced on Wed, whole lot has gone, staff all laid off, Fraser Group only bought brand names and product designs (only IP stuff) and not the actual business so essentially he got a bargain and none of the grief and probably had money left over so made the move on Hornby PLC. Aside the Mike Ashley part of it, there could be some good alliances between Hornby and Fraser Group across a lot areas that HH needs to sharpen its game on. 1 Link to comment Share on other sites More sharing options...
Dodge1965 Posted February 23 Share Posted February 23 Result... I might get staff discount now.. 1 1 Link to comment Share on other sites More sharing options...
Rana Temporia Posted February 23 Share Posted February 23 I want one of those cups that holds around 2 pints of tea with every Hornby order just like I get with stuff from Sports Direct even when I don’t know it’s them I’ve ordered off. 1 Link to comment Share on other sites More sharing options...
Moccasin Posted February 23 Author Share Posted February 23 An article in the Telegraph gives their take. https://www.telegraph.co.uk/business/2024/02/23/mike-ashley-steps-up-stake-in-model-train-maker-hornby/ Link to comment Share on other sites More sharing options...
Rallymatt Posted February 23 Share Posted February 23 By comparison Hornby’s big UK rival, Kader Holdings (Bachmann) have slumped to a share value of 2.3p, stagnation (no trading) after a series of dramatic drops in turnover year on year on year. Failure of Kader could spell disaster for a range of (not Hornby) manufacturers as they rely on Kader for manufacturing facilities Link to comment Share on other sites More sharing options...
LTSR_NSE Posted February 23 Share Posted February 23 (edited) If the worst happened to the Kader group - but the model companies & IP (designs, toolings etc.) could be separated & sold/moved to other owners/factories (if remain within China might be easier?) - then it wouldn’t need to cause them much more difficulties than when Hornby had to find alternatives for Sanda Kan. Edited February 23 by LTSR_NSE Link to comment Share on other sites More sharing options...
Rallymatt Posted February 23 Share Posted February 23 Lot of IFs, when companies fail in China, usually a number of people will go to prison/die and it takes forever to get anything going again, if ever. Link to comment Share on other sites More sharing options...
Moccasin Posted March 20 Author Share Posted March 20 (edited) Further to the announcement of Frasers Group's share holding last month, Hornby have today announced that they're entering into a consultancy agreement with Ashley's Mash Holdings "...Mike will be available to support Olly Raeburn, CEO of Hornby, and the wider business, particularly in relation to systems, operations, logistics and, where relevant, broader matters of strategy." Maybe Mr Raeburn's Blue/Grey TT120 HST has been delayed too and he's got frustrated with his own company's logistics! polaris.brighterir.com/public/hornby/news/rns/story/wv4d40w Edited March 20 by Moccasin clarity Link to comment Share on other sites More sharing options...
Dodge1965 Posted March 20 Share Posted March 20 30 minutes ago, Moccasin said: Further to the announcement of Frasers Group's share holding last month, Hornby have today announced that they're entering into a consultancy agreement with Ashley's Mash Holdings "...Mike will be available to support Olly Raeburn, CEO of Hornby, and the wider business, particularly in relation to systems, operations, logistics and, where relevant, broader matters of strategy." Maybe Mr Raeburn's Blue/Grey TT120 HST has been delayed too and he's got frustrated with his own company's logistics! polaris.brighterir.com/public/hornby/news/rns/story/wv4d40w I called them to see if HOF employees got discount, as my son is a manager with them. But the answer was NO... Gutted.. Now Game are starting to sell some Hornby, so maybe in time, TT120 will be on there and i will get some discount. 1 Link to comment Share on other sites More sharing options...
Rallymatt Posted March 20 Share Posted March 20 What people don’t realise is Mike Ashley is a massive model railway fan and loves TT:120…. 3 Link to comment Share on other sites More sharing options...
What About The Bee Posted March 20 Share Posted March 20 I'm always concerned when a moneyed interest, a venture capitalist, takes a stake in a business. All too often, it is to strip the meat off of the bones, only to sell the husk on to the next vulture. That Mr. Ashley is an enthusiast puts paid to that notion. Hopefully. Bee Link to comment Share on other sites More sharing options...
Simon-369848 Posted March 20 Share Posted March 20 Having read various articles it 'says he is taking a non-paid 'Consultative'' role. Open to interpretation. Link to comment Share on other sites More sharing options...
Rallymatt Posted March 20 Share Posted March 20 1 hour ago, What About The Bee said: I'm always concerned when a moneyed interest, a venture capitalist, takes a stake in a business. All too often, it is to strip the meat off of the bones, only to sell the husk on to the next vulture. That Mr. Ashley is an enthusiast puts paid to that notion. Hopefully. Bee Sorry Bee… my tongue was firmly wedged in my cheek, I have no idea if MA is railway fan or not… his current interest is not his usual MO though so perhaps it’s something more than just business. 1 Link to comment Share on other sites More sharing options...
Moccasin Posted March 20 Author Share Posted March 20 His attention may be diverted right now by Ted Baker’s problems - the chain seems like a good fit for his brand and MO. The Hornby stake seems more strategic but we will see. Link to comment Share on other sites More sharing options...
Moccasin Posted March 20 Author Share Posted March 20 3 hours ago, What About The Bee said: I'm always concerned when a moneyed interest, a venture capitalist, takes a stake in a business. All too often, it is to strip the meat off of the bones, only to sell the husk on to the next vulture. That Mr. Ashley is an enthusiast puts paid to that notion. Hopefully. Bee To be fair, Phoenix seems to have done a relatively decent job looking after Hornby and allowing them to invest in TT & HM7000 and to make their own stakes in Warlord etc. Whether Ashley’s interest is the start of a much larger stake or a buyout, who knows. I’m no fan of Ashley, but his interest in Curry’s, AO etc seems different to buying out struggling fashion retail brands, so maybe the logistics angle is true. Hornby’s fortunes seem to be turning, so I can’t imagine Phoenix selling Hornby off cheaply, but maybe Ashley will offer them a good price. Link to comment Share on other sites More sharing options...
What About The Bee Posted March 21 Share Posted March 21 @RallymattWelp, you certainly caught me out. I thought you were being serious. Now I am not so sanguine about the investment. @MoccasinI very much want Hornby to succeed, independent of who is in the saddle. I have seen far too many companies hollowed out by venture capitalists. Bee 1 Link to comment Share on other sites More sharing options...
Rallymatt Posted March 21 Share Posted March 21 We know MA is a massive fan of making money… and he does usually take a different approach, he picks the carcass clean of failed businesses, takes what works and leaves what doesn’t, evolutionary business but this is definitely different. Offer of free advice in an area his businesses have excelled? Invest his money into a business at full market value? It’s not unknown for the hardest businessmen to have a soft spot for particular opportunities. It would be a PR scoop for MA if he came out as a massive model railway/scalextric/Airfix fan, not that I think he cares what people think of him, he just gets on with it. 😁 1 Link to comment Share on other sites More sharing options...
Moccasin Posted March 21 Author Share Posted March 21 I think the most benign/favourable interpretation, other than him being a secret Pete Waterman type, is that the Frasers Group see benefits for their business from Hornby improving. Either in terms of revenue for their logistics operation or retail opportunities aligned with GAME and/or HOF. Fingers crossed it’s that rather than him wanting to asset strip or leverage the brands for something. 1 Link to comment Share on other sites More sharing options...
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