Hornby PLC (LSE:HRN), the toy trainset and Scalextrix maker, has welcomed Mike Ashley, the owner of Frasers Group PLC (LSE:FRAS), as a consultant, a month after it was revealed his company had upped its stake as a strategic shareholder.
Through his personal vehicle, Mash Holdings, the Sports Direct founder will be able to provide support to Hornby chief executive Olly Raeburn, the miniature vehicles maker said in a statement.
Ashley will also offer guidance relating to the wider business including the systems, operations and logistics of the organisation.
This appointment highlights Frasers Group’s strategy to add value to its investments, excreting value for shareholders of both Hornby and the Flannels owner.
Ashely, Mash and Frasers Group will not receive any remuneration for these consultancy services.
In February, Frasers, which also has stakes in Boohoo, Currys and Asos, revealed it had upped its stake in Hornby – whose products are already stocked in Frasers-owned GAME stores – to 8.9%.
“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,” said Frasers’ chief financial officer Chris Wootton at the time.
“This is consistent with our strategy of pursuing strategic interests to enhance value for all stakeholders.”