Hornby Hobbies the company who make Hornby trains, Airfix kits, and Corgi models announced another shares warning recently despite trading well in the final quarter of 2015. The graph below from their web site tells the story, a 60% fall in the value of their shares last week.
For collectors of models made by the group this can only be bad news since it means that they will be less able to borrow money to invest in new tooling. Collectors of Vanguards, and other Corgi ranges, will have noticed the reduced investment in new castings over the last couple of years and with the reduction in the value of the company and its substantial debt to its bank it seems that things will not improve.
It is sad that with 2016 being the 60th Anniversary of the Corgi brand it is unlikely that any boost to the rapidly fading Vanguards range will happen. Even if the desire to make some special models existed the funding seems unlikely to be.
Update 16th February
Hornby Hobbies shares have recovered a little after Richard Ames, the chief executive, stepped down. The company chairman Roger Canham has taken over running the company and although the shares have risen a little he faces a major challenge sorting out the logistics problems, supply chain issues, and retaining collectors interest in ranges with few new releases to offer. As the custodian of some of the UK’s best known brands we wish him luck in steering the company back to profitable trading.
MAROnline welcome thoughts from readers on this or any other subject that we cover in this blog.
We welcome your comments and questions. Please go to our Model Auto Review Facebook page.