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Hornby's financial updates to the Stock Market

finance profit loss stock market trading update




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#3276 Ozexpatriate

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Posted 17 October 2017 - 21:33

It is a profit warning, and therefore dividends payment warning, in theory, but no profits were predicted. It is a suggestion of retrenchment of capital investment, when that has already occurred. It s also a suggestion of cash flow problems, which should not be an issue with £1.5 million cash in hand as at April 1.

This is clearly a mandatory profit warning but perhaps we should not speculate on the cause in a public setting as this, besides what was clearly stated in the release - that there will be a profit short fall, in part, because there won't be a 'fire-sale' to pump up revenue at the last minute.

 

(And we don't know their present current cash in hand, not knowing when payments on their loans are due.)

 

The PLC will report their financial condition at the appropriate time.

 

We do normally see a half-yearly interim summary (for books closed on the half on September 30) sometime in November. The 'statutorily required' disclosures will happen at that time. I anticipate that we will also hear some indication of the new CEO's plan on how to return this company to profitability at that time.



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#3277 Legend

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Posted 17 October 2017 - 21:39

He's in with a new brush. Deliver bad news now and you will get away with it. Then build the business. I see it as no more than that. He has lowered initial expectations and given him time to deliver.

As to lower R&D . I don't see it that way. The way out of this is to deliver a steady stream of new models. It is quite clear the market has changed . Initial releases sell , 2nd and third ones don't . Release new models, maximise sales, rest models that are two or three years old. These are the ones that are hanging around on the shelf.
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#3278 PanzerJohn

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Posted 17 October 2017 - 22:00

I've only ever bought stuff when on sale, luckily I've got virtually everything I need/want, although a £100 unrebuilt Merchant Navy one would have been nice, just have to look for a mint s/h one as I'm not paying Hornby's rrp.


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#3279 Crantock

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Posted 18 October 2017 - 07:03

David Adams was actually the longest serving Hornby Director on the board.  The others are:

DK Mulligan Dec 2016 (Group FD)

MP George Dec 2016  (non-exec)

JEH Wilson Aug 2017  (Phoenix)

Lyndon Davies Oct 2017 (Oxford)

 

Not quite the continuity you might expect.

 

Personally I think it would be better if Phoenix took it private and the turnaround could be conducted in private. 


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#3280 PrestburyJack

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Posted 18 October 2017 - 15:53

The reality is very different...  I still have Bachmann 4-CEPs .........

 

Two less now  :)









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