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Hornby secure £18 million loan


lapford34102
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"quick, we need a file photo of a model train"  :scratchhead:

 

Good news though.

c'mon - that almost sounds like the press know what they're talking about ...... surely they'd have called for "a file photo of a TOY train" !!?!

 

...... anyway, eighteen million at payday loans rates - they'll have to offer lots more goodies that we want to buy !

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That's very good news for those of us who are looking forward to new Hornby models next year. Hopefully they will not have to draw down too much or the pressure will really be on to make significant profits, venture capitalists look forward to significant returns on their investments. I reckon this is really good news for the staff at Hornby and it should allow them to go ahead with the development of even more excellent models and plan their releases with care. 

 

all the best

Godfrey

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showing your age there Andy  :locomotive:  

i wonder how many people are....sat there thinking....whats he on about KLF????

 

I do wonder though how much impact the industry commentators would say that things like the mazac issues, have had on Hornby? But are Hornby an early casualty of the whole industry with bachman scaling back releases and the likes of hattons commissioning models, and more recently model rail commissioning models......or is it a case of the hobby is starting to become unsustainable, at the current prices?

Edited by pheaton
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showing your age there Andy  :locomotive:  

i wonder how many people are....sat there thinking....whats he on about KLF????

 

I do wonder though how much impact the industry commentators would say that things like the mazac issues, have had on Hornby? But are Hornby an early casualty of the whole industry with bachman scaling back releases and the likes of hattons commissioning models, and more recently model rail commissioning models......or is it a case of the hobby is starting to become unsustainable, at the current prices?

 

I think that the very fact that so many retailers are able to commission models shows that there is a remarkably strong market out there.

 

But the business has to be run as a tight ship and, the big advantage they have is not having to maintain a network of distributors. Hornby have been unbelievably poor at looking after their retailers.

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showing your age there Andy  :locomotive:  

i wonder how many people are....sat there thinking....whats he on about KLF????

 

I do wonder though how much impact the industry commentators would say that things like the mazac issues, have had on Hornby? But are Hornby an early casualty of the whole industry with bachman scaling back releases and the likes of hattons commissioning models, and more recently model rail commissioning models......or is it a case of the hobby is starting to become unsustainable, at the current prices?

I think it's more a case that the current manufacturing scenario has made entering r-t-r model railways a far more realistic proposition for newcomers than used to be the case.

 

Prices are what they are and, without wishing to sound too Darwinist, production volumes will ultimately be set to cater for those willing and able to pay them. There's a big difference between the market becoming unsustainable and some existing participants not being able to keep up. At some point that might include me, depending on when and where things level off.

 

The problem for Hornby, and probably Bachmann, too (though for different reasons) is that "the others" are leaner, hungrier and more agile. Hornby's best hope for long-term survival (IMHO) lies in changing their corporate structure to better match the way the rest of the industry is evolving. As outsiders, that isn't a process we are likely to notice until it's done.

 

John

Edited by Dunsignalling
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If I was the bank, I think the first thing that I would be looking for is for Hornby to concentrate on their key market - the UK. They simply do not seem to have picked up the ball at all with their European brands. Better to sell the brands off to a European company that will use them properly.

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Whilst its good news that Hornby have kept the wolves from the door for a bit longer, the debt is piling up and that can't be good - where is all the money going?

 

Is debt piling up? They state they are cash positive at year end, which suggests this is for funding new capital investment (presumably and hopefully for new tooling), licensing and for ensuring reliable cash flow in the weaker quarters, for ensuring CAD and production slots and for one off payments in downsizing their overheads. We will not know the extent of progress until they publish their full results on or soon after 18 June.

 

Hornby's own statement to the stock market, which shows the rates and charges they will be paying (including charges for not using the facilities) is here - http://otp.investis.com/clients/uk/Hornby/rns/regulatory-story.aspx?cid=1477&newsid=1039575

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I do wonder though how much impact the industry commentators would say that things like the mazac issues, have had on Hornby? But are Hornby an early casualty of the whole industry with bachman scaling back releases and the likes of hattons commissioning models, and more recently model rail commissioning models......or is it a case of the hobby is starting to become unsustainable, at the current prices?

 

There really is no indication that hobby is becoming unsustainable, it is merely changing as it often does.

 

What is likely is that Hornby's problems are unique to Hornby, particularly the costs they have that no other competitors do - being listed on the stock exchange brings a whole bunch of costs their competitors don't have.

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If £12M of the money comes from Phoenix, and Phoenix own 3/4 of Hornby its not really a loan as such is it.

 

It is almost like they have had to inject some cash to encourage PNC bank to lend them £6M

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If £12M of the money comes from Phoenix, and Phoenix own 3/4 of Hornby its not really a loan as such is it.

 

It is almost like they have had to inject some cash to encourage PNC bank to lend them £6M

 

Partly true, but it is the opposite way around: PNC lending up to £12m and Phoenix up to £6m.

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Whilst its good news that Hornby have kept the wolves from the door for a bit longer, the debt is piling up and that can't be good - where is all the money going?

Chinese gang..... Business Groups?

Edited by Mallard60022
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