logo-loader
viewHornby PLC

Model train maker Hornby tapping the City for £15mln

As well as being used to provide the main brands with a boost the new funds will also be invested in digital marketing

Hornby PLC -

Model train maker Hornby PLC (LON:HRN) has unveiled a City fundraiser that will bring in up to £15mln to be used reinvigorate its key brands.

The owner of Airfix, Meccano and Scalextric said new shares in the firm would be sold in a placing and open offer at 36p each, the price at which the stock closed on Thursday.

As well as being used to provide the main brands with a boost the new funds will also be invested in digital marketing and to provide the business with the “flexibility to invest in growth opportunities”.

The cash call has the backing of the company’s two main investors, Phoenix Asset Management Partners, and Artemis Investment Management, who between them own 90% of the business, which has endured a rocky five years

It's last results – interims covering the six months ended September 30 – pointed to the need for a financial injection as Hornby revealed it had just £769,000 in cash and around £5mln utilised in operations.

As at the period-end, Hornby held almost £15mln in inventories, while trade and receivables -(the money owing to the company) were £7.7mln.

In Friday’s announcement, Hornby confirmed its chief executive Lyndon Davies and Catherine Davies have committed not to offload the 51% stake LCD Enterprises Hornby doesn’t own until 2023 at the earliest. LCD owns Oxford Diecast Group.

Quick facts: Hornby PLC

Price: 32.5 GBX

LSE:HRN
Market: LSE
Market Cap: £54.25 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Enthusiasm of Belvoir Group franchisees during crisis has been incredible...

Dorian Gonsalves, chief executive of Belvoir Group PLC, says the company’s franchisees will be ready to go straight out and start letting again as soon as the lockdown is lifted. Belvoir is actively transacting business on all sides except estate agency, where transactions have all but...

13 hours, 35 minutes ago

2 min read