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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Most followed: End of the line for Hornby boss

Bosses head for the exit at Hornby and at Alliance Trust but HSBC decides to stay put.

It is bad enough losing your job but seeing the share price rise on your departure really rubs salt in the wounds.

Spare a thought, therefore, for Richard Ames, who is stepping down as chief executive of Hornby (LON:HRN), the toys maker, with immediate effect.

He appears to have gone quietly and without throwing his toys out of the pram after last week's profit warning.

The shares, which plunged from 81p to 45p on the day of the profit warning and then kept rolling on downhill to 24.5p at Friday's close have chugged back up to 31p, up by a quarter on the day, having reached 33.5p at one point.

Frankly, it is somewhat of a surprise that Britain still has a toy manufacturer; the likes of Dunbee Combex Marx, Timpo, Lesney and Mettoy have long since disappeared from the London Stock Exchange.

Hornby has managed to hang on but has been plagued by problems since an overhaul of its computer and stock management systems caused UK sales to plummet over the summer.

Also on the way out is Katherine Garrett-Cox, former chief executive of fund manager Alliance Trust.

There was not much of an alliance, or trust, for that matter, on show on Monday morning as it was announced that she would leave the company on 11 March – three days before the Ides of March – after she was demoted last October to the position of chief executive of the company's Alliance Trust Investments subsidiary.

It is hard to determine whether Garrett-Cox's departure was even less surprising than HSBC's (LON:HSBA) decision to keep its headquarters in Britain.

The bank, formerly known as the Hongkong and Shanghai Bank, cut up rough when the previous government introduced a banking levy that reportedly wiped out the bank's profits in the UK.

After the last election, which saw the Conservative party jettison its coalition partners, the levy was changed from one that applied to global assets to one that applies to banks' UK profits (those that were making them).

That seems to have been enough to persuade HSBC to stay for the nonce, though deteriorating economic conditions in the Asia Pacific region might also have swayed the board.

Staying out east, the pre-close trading update from Action Hotels (LON:AHCG), the owner and developer of mid-range hotels in the Middle East and Australia, has been very well-received.

Underlying earnings (EBITDA) for 2015 are expected to be up 42% year-on-year.

The company griped that its shares traded at a 45% discount to net asset value per share, and the market appears to have listened, pushing the shares up 14.3%.

Closer to home, securities and facilities management company Mortice (LON:MORT) has won a 10-year contract worth in excess of £55mln with the University of Hatfield.

It will provide services ranging from grounds maintenance and cleaning to hygiene, pest control and help desk services, not to mention a Pot Noodle home delivery service.

OK, I made that last one up.

The shares added some rigour to Mortice's share price, which rose 1.8% to 87p.

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