Hornby Plc (LON:HRN) has appointed Lyndon Davies, currently the chairman of Oxford Diecast and the majority shareholder of Diecast's owner LCD Enterprises Ltd, as the hobbies group’s chief executive officer.
The Airfix models to Scalextrix slotcar racing group also said it is now exploring the possibility of investing in LCD, with further information to be released in due course.
READ: Hornby's recovery off the rails as hobbies group warns on full-year performance, weak current trading
In a statement, Hornby's interim chairman, David Adams said: "I am delighted to welcome Lyndon to the board. His obvious expertise in and enthusiasm for the toy and hobby industry will provide the group with experienced leadership for the next stage of our development."
Adams added: “Hornby will continue with its turnaround plan and Lyndon is ideally qualified to steer the group through this period.”
The group said Davies will appoint Tim Mulhall and Simon Kohler as operational consultants who will report directly to him and the board.
It added: “These appointments are part of a strategy to complement the Group's existing management with additional highly experienced model and hobby expertise.”
Current CEO’s immediate departure
Davies will join Hornby's board once customary due diligence is completed, the group said, with current CEO Steve Cooke leaving with immediate effect.
Cooke departure, indicated on September 11, comes after Phoenix UK Fund became Hornby’s controlling shareholder having made a mandatory offer for the company at 32.375p per share in June, after increasing its stake to 55%.
On September 6, in an AGM statement, Hornby had warned that, while it still has the important Christmas trading period to come, "there is a risk that the shortfall in performance to date may not be recovered fully over the remainder of the financial year".
Hornby shares held steady today at 27.62p.