Advertisement

Search for new Hornby Chief Executive underway

Shares of Hornby, best known for its model train sets and Scalextric racing kits, came under pressure after it warned that the retail environment in the UK and Europe remains challenging and as it embarks on its search for a new Chief Executive.

Shares of Hornby, best known for its model train sets and Scalextric racing kits, came under pressure after it warned that the retail environment in the UK and Europe remains challenging and as it embarks on its search for a new Chief Executive.

As previously announced, Frank Martin will retire from his role as Chief Executive at the end of June this year. Martin has presided over a string of profit warnings and a near 40% drop in share price in the last year. Chairman, Roger Canham, will move to an executive role and appoint a new CEO.

Advertisement - Article continues below

Hornby also announced, following a review of the wider internal management structure, there will also be a re-structuring of the senior team below the board level.

"This will create a simpler, more streamlined reporting structure that more closely reflects the current shape of the business and will take effect immediately. A one-off restructuring charge of around £0.5m will be recorded this year, which is expected to be largely offset by cost savings in the year to 31 March 2014," the group explained.

Otherwise the Children's toy maker said it remains confident in the group's strategy despite the continuing backdrop of a patchy consumer environment.

"We are confident that the measures that we have taken will strengthen our sales potential in the future. We have a broad portfolio of strong brands and we are optimistic that with a more reliable supply chain, we will see a return to growth of both sales and profitability."

As it approaches the end of its financial year, it said trading has been in line with its expectations. Hornby said the broadening of the supplier base is continuing successfully, which is expected to lead to an improvement in delivery reliability.

Hornby added, "The retail environment in the UK and Europe remains challenging, but we have responded by introducing a range of new products, that have been received enthusiastically at the recent international Toy Fairs."

"In particular, the response to the launch of the Quick Build concept across both Airfix and Scalextric brands and the re-launch of the Pocher model car range has been very encouraging."

CJ

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020