The chairman of Hornby PLC (LON:HRN) has decided to disembark as the model train maker issued yet another profit warning.
The AIM firm brought in new chief executive Lyndon Davies earlier this month and his first move has been to halt the sale of large quantities of products at a discount.
READ: Hornby appoints Lyndon Davies as new CEO
He hopes this will “maximise the value of [Hornby’s] brands over the long-term”, although the decision will weigh even further on full-year revenues which will in turn have a “material impact” on profitability.
Hornby, which also owns the Scalextric brand, only last warned on its full-year outlook in September, when it cited “softer market demand” for its below par year-to-date.
It reiterated those broader concerns today and said its “new approach” to discounting stock would mean it wouldn’t be able to recoup the shortfall in revenues from earlier in the year.
READ: Hornby warns of full-year performance after weak trading
Chairman to move on
Aside from the warning, interim chairman David Adams is to step down from the board in order to take up another appointment elsewhere.
Hornby said in a statement that a search for a permanent independent non-executive chairman is progressing with an announcement to be made in due course.
In the meantime, Adams has agreed to chair the board until a replacement is found, after which he will leave his post following a short handover.
Investors seemingly weren’t fazed by yet another profit warning, with shares flat at 33p.