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MikeC

Hornby Problems

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I don't think so, judging by what I've read so far looks like a hiccough in sales. Banks are overly cautious at the moment, so if they are trying to help, there will be a good reason  for doing so.

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25 minutes ago, skwonk said:

Are people really that modest nowadays? 

 

I don't remember either of us wearing much on our wedding night, that was nearly forty years ago so it must be some newfangled idea. 

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It will be interesting to see what the end of year performance looks like when they issue the annual report. 

Dont forget they issued a profit warning back in January on the back of poor Xmas trading. 

They also issued more shares last year to bring in some revenue and bought a stake in Oxford Diecast...

So they have had a busy year... Getting the bank to overlook the EBITDA figures is only a short term move as that’s not a sustainable model in the long run..

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8 hours ago, Gadfly said:

It will be interesting to see what the end of year performance looks like when they issue the annual report. 

Dont forget they issued a profit warning back in January on the back of poor Xmas trading. 

They also issued more shares last year to bring in some revenue and bought a stake in Oxford Diecast...

So they have had a busy year... Getting the bank to overlook the EBITDA figures is only a short term move as that’s not a sustainable model in the long run..

Lots of companies try to buy themselves out of trouble so Oxford diecast could be seen as an attempt to do that. In my mind the days of the large company owning a model company are coming to an end. The companies that are doing well don't have loads if share holders to answer to and are run by enthusiasts. Maybe hornby' s time has come much like hobbico 's let's hope airfix and Revell can go back to being run by the people that are passionate about the product instead of being seen as a cash cow to keep the group afloat. 

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Here is the Hornby problem...

39792322392_510da5d89b_z.jpg

Falling Revenue and no profit.

(the numbers are from the Hornby annual reports so are accurate)

At the end of last year IIRC they had only around 360k of a multi million pound banking facility left. This led them to try and raise 12 million from a share offering some of which was to pay down debt some of which was to invest in new technologies. As part of that they decided at around the same time as the new CEO joins the company to buy I think 51pc of his company Oxford Die Cast.... I don’t know why but it was good news for the new CEO...

Following his arrival they have amended how they trade with the larger retailers by stopping volume discounts. The problem seems to be that to make that trade viable it needs the discount structure in place. Then there is the Hornby management ‘go to’ excuse of late supplier delivery. 

I think looking at the numbers that Hornby is an un-sustainable business in its current form. 

Thats not a slight on the hard working folk at Hornby but the reality that what they sell is not bought in the volumes the business is structured for..

Cheers

John

 

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On 06/03/2019 at 09:11, MikeC said:

Reviving an old thread, but relevant.  BBC 4 tonight, 6th March:  https://www.bbc.co.uk/programmes/m00030wh

 

 

Oooh,I'll catch up on that one.

On 07/03/2019 at 12:17, bluebottle said:

Did anyone notice Mike Williams around 43 mins in?

Wouldn't know him if I smacked him in the bracket(now there's a thought eh,down Michelle down I say).

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Incidentally, the Model Railway show featured was in the MK Arena, where we'll be having Milton Keynes ModelKraft XXL this year.

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Having spotted my Fe2b, I freeze framed it (to savor the moment) and then realised the red and white smudge on the right of the shot was me!!!! I wondered what that guy with the big camera was doing...

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13 minutes ago, Grant said:

Having spotted my Fe2b, I freeze framed it (to savor the moment) and then realised the red and white smudge on the right of the shot was me!!!! I wondered what that guy with the big camera was doing...

that was your FE2 on the L&C stand??? i love that build 

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2 hours ago, Grant said:

Having spotted my Fe2b, I freeze framed it (to savor the moment) and then realised the red and white smudge on the right of the shot was me!!!! I wondered what that guy with the big camera was doing...

Yes, I noticed YET ANOTHER bloke completely ignoring and leaning over my T9 to photograph your Fe2b... 😉

Dean

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