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The Markets
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Retail

Hornby surges again after Frasers ups stake in model railway maker

Hornby PLC (LSE:HRN) continued to steam ahead of Monday after shares in the model railway maker were snapped up by Mike Ashley’s Frasers Group PLC (LSE:FRAS) at the end of last week.

Frasers, which alongside Sports Direct has stakes in boohoo, Currys and Asos, upped its ownership stake in Hornby – whose products are already stocked in Frasers-owned GAME stores – to 8.9% per a Friday announcement.

“Hornby's portfolio of unique heritage brands are already part of GAME's product offer and we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution. This is consistent with our strategy of pursuing strategic interests to enhance value for all stakeholders," said Frasers’ chief financial officer Chris Wootton.

Hornby shares rallied to the top of the small-cap scene following the Friday announcement, adding 40% to 29.2p, before adding another 34% today.

At the time of writing, the stock was trading at 35.25p with a market capitalisation of £62.75 million.

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