Hornby Update on Financials.

[Widnes Model Centre]

Found this on marketwatch.com. Did somebdy from Hornby really say this?  Seems possibly a Kohlerism followed by....... "but don't quote me"

 

 

British model railway company Hornby HRN, +1.79%   said it regrets not making -themed toy train and also warned supply disruption could impact its key Christmas trading period.

Ahead of its AGM on Wednesday, the company said sales and margins for the five months to the end of August were higher than last year.

But the Scalextric owner said it was “mindful” of the potential supply disruption at the ports if or when Britain leaves the EU.

It warned that its full year outcome hinged on sales in the crucial Christmas period but that its t preparations, which began last year, had been extensive.

Despite the caution, Hornby’s stock climbed 7.4% in early trading as investors welcomed improved sales and margins.

On a lighter note, the London-listed company also said it regretted not producing a-themed model railways set.

The comments came just hours before Parliament resumed after the Supreme Court ruled its suspension, led by Prime Minister Boris Johnson, was unlawful.

Hornby said its “new grasp of social media” had shown how passionate people are about. .

In a trading statement, the company said, “We regret not producing a  themed model.”

“If the situation persists, we have plans for a locomotive that reliably gets stuck between stations,” it added.

The model train maker has struggled in recent years with declining sales, partly due to a fall in collectors, lack of enthusiasm for modelling, and supply backlogs, leading to heavy losses. Shares have fallen 71% since August 2015.

The company’s turnaround appears to be on track, however, as it pushes new products and struck a licensing deal with Warner Bros in September last year, allowing it to sell Harry Potter and DC Super Heroes merchandise.

It narrowed pretax losses by 42% to £4.4 million for the year ending March 2019.

Callum Keown

Callum Keown is a Barron's Group reporter for the Europe, Middle East and Africa region. He writes for MarketWatch, Barron’s, Penta and Financial News.

 

Edited September 26, 2019 by Widnes Model Centre
Removal of the B word

[adb968008]

8 minutes ago, Widnes Model Centre said:

“We regret not producing a Brexit themed model.”

 

Dont need to, theres plenty of empty boxes at inflated prices on ebay already.

[railroadbill]

11 minutes ago, adb968008 said:

Dont need to, theres plenty of empty boxes at inflated prices on ebay already.

The set would of course be pointless.

[Phil Parker]

47 minutes ago, Widnes Model Centre said:

Found this on marketwatch.com. Did somebdy from Hornby really say this?  Seems possibly a Kohlerism followed by....... "but don't quote me

 

Yes they did - I was sent this link: https://www.thisismoney.co.uk/money/markets/article-7504415/Model-train-maker-Hornby-gets-track-sales-climbing-April-August.html

by someone in the firm (not Simon) this morning. There's obviously someone in the PR department with an eye to a headline. 

 

(Note: This is a Hornby thread. Try to discuss the B-word and you will be moderated. If everyone stuck to toy trains, the world would be a better place.)

 

 

[adb968008]

Tongue in cheek could be a Redundant Eurostar as now in use in Europe on budget Highspeed services in France / Belgium..theyve done almost all other liveries.

 

 

Eurostar or a 92 is the only thing I could relate to a “B” themed trainset.

 

Hidden in the comedy headline is Hornbys losses shrunk 42%... thats very noteworthy as progress... tbh they would have been better hiding the politics and pointing out this message, though adding the B word may have had the effect of bringing the announcement to greater prominence in the news, even if the good news is lost in the detail.

 

https://www.rte.ie/news/business/2019/0925/1078051-Hornby-brexit-warning/

Edited September 26, 2019 by adb968008

[montyburns56]

But what would be the most suitable models and rolling stock for a Brexit themed set?

[jjb1970]

I'm sure this was intended as a light hearted humorous comment, and normally I'd either chuckle or shrug it off but given the events of the last couple of days it just seems a bit crass and needlessly insensitive to me. However, who am I to grumble.

[adb968008]

5 minutes ago, montyburns56 said:

But what would be the most suitable models and rolling stock for a Brexit themed set?

Announcing a new class 374 would be nice...

 

I understand why in recent years Hornby may have focussed away from an adventurous tooling like this, in its recent economic environment, but equally surprised its not had as much clamour to produce one as the 373 had when it was new.

Edited September 26, 2019 by adb968008

[jjb1970]

I can only hope a model class 374 will be a bit better than the real thing, oh dear......

[Widnes Model Centre]

10 minutes ago, Phil Parker said:

 

Yes they did - I was sent this link: https://www.thisismoney.co.uk/money/markets/article-7504415/Model-train-maker-Hornby-gets-track-sales-climbing-April-August.html

by someone in the firm (not Simon) this morning. There's obviously someone in the PR department with an eye to a headline. 

 

(Note: This is a Hornby thread. Try to discuss the B-word and you will be moderated. If everyone stuck to toy trains, the world would be a better place.)

 

 

 

Hi Phil,

 

The B-word is part of the story, it was not intended to be political in any way shape or form. 

The threat of moderation is in my opinion a little unfair.

Your own link contains th same word. 

If l have crossed the line by all means please delete the post.

[The Stationmaster]

I wonder why a container directly imported from China would be delayed by Brexit?  The only thing I can assume is that it will come through a port which also handles container traffic from mainland Europe and might get delayed in the queue for Customs examination - which it has to undergo anyway under existing arrangements.

 

Here is the original Hornby statement -

 

http://otp.investis.com/clients/uk/Hornby/rns/regulatory-story.aspx?cid=1477&newsid=1331546

[Oldddudders]

The B-word? I thought you meant Bachmann!

[frobisher]

3 minutes ago, The Stationmaster said:

I wonder why a container directly imported from China would be delayed by Brexit?  The only thing I can assume is that it will come through a port which also handles container traffic from mainland Europe and might get delayed in the queue for Customs examination - which it has to undergo anyway under existing arrangements.

 

Except those current arrangements won't be the current arrangements post Brexit necessarily...

[phil-b259]

16 minutes ago, adb968008 said:

Announcing a new class 374 would be nice...

 

I understand why in recent years Hornby may have focussed away from an adventurous tooling like this, in its recent economic environment, but equally surprised its not had as much clamour to produce one as the 373 had when it was new.

 

Because its not very profitable as a project!

 

The 373 Hornby eventually produced (after selling re-badged Jouef HO versions for a few years) was released during the time Hornby were stuck in their 'train set' mentaility (i.e. pre 2000 and the move to China) would not be considered acceptable these days!

 

Compare it to the class 800 IETs, which:-

 

Come in train set friendly 5 car sets

Have a number of livery variations

Wide UK geographical spread

Are complemented by other products in the Hornby range.

 

 

 

 

 

 

[Nile]

They could do this one:

[JohnR]

1 hour ago, The Stationmaster said:

I wonder why a container directly imported from China would be delayed by Brexit?  The only thing I can assume is that it will come through a port which also handles container traffic from mainland Europe and might get delayed in the queue for Customs examination - which it has to undergo anyway under existing arrangements.

 

Here is the original Hornby statement -

 

http://otp.investis.com/clients/uk/Hornby/rns/regulatory-story.aspx?cid=1477&newsid=1331546

 

Typically, a container ship from China will visit Rotterdam before then going to Felixstowe or Southampton. Presumably extra delays will be introduced in that. 

 

 

[The Stationmaster]

1 hour ago, JohnR said:

 

Typically, a container ship from China will visit Rotterdam before then going to Felixstowe or Southampton. Presumably extra delays will be introduced in that. 

 

 

Depends which shipping line is used, for example in some cases they are first call Southampton on their westbound voyage.   As far as a ship calling at another port is concerned there should be no problem provided the cargo is not unloaded, for example some ships from China call intermediately before calling at a European port and all that matters is that when the container is landed at the UK port the original seals are intact and that the contents are as per the manifest.  

 

I don't think there have been any problems, apart from the resultant delay, when containers are for whatever reason unloaded at an intermediate port and subsequently forwarded on another vessel.  Again it's a matter of seals being intact and the contents agreeing with the manifest - which is the situation now and presumably would be in future.  I can't see much difference between a container being landed at, say Singapore or Suez (as sometimes happens) and then re-forwarded on another ship and a container being landed at, say, Europort and being forwarded on another ship - it arrives at the UK port in just the same way and would be treated in just the same way as it would if it had come right through from loading at the Chinese port.

 

The only problem I could see is that there would be a lot more inward cargo requiring Customs attention at the port if a container from, say,  Holland or Belgium destined to the UK required Customs clearance on arrival at the UK port - which means more work for the Custom Officers.

[JohnDMJ]

1 hour ago, JohnR said:

 

Typically, a container ship from China will visit Rotterdam before then going to Felixstowe or Southampton. Presumably extra delays will be introduced in that. 

 

 

 

Why, when it could come direct to Dollands Moor?

[Phil Parker]

3 hours ago, Widnes Model Centre said:

 

Hi Phil,

 

The B-word is part of the story, it was not intended to be political in any way shape or form. 

The threat of moderation is in my opinion a little unfair.

Your own link contains th same word. 

If l have crossed the line by all means please delete the post.

 

If you can't grasp the difference between talking about a humorous press release and a full blown, model railway free, discussion about Brexit, then moderation will br required. I think most people know where the line is.

[Ravenser]

3 hours ago, adb968008 said:

Announcing a new class 374 would be nice...

 

I understand why in recent years Hornby may have focussed away from an adventurous tooling like this, in its recent economic environment, but equally surprised its not had as much clamour to produce one as the 373 had when it was new.

 

 

I've been repeatedly told that it's not viable as nobody is interested.... People don't want to buy models of trains they've actually ridden on, apparently.

 

It's a long beast, and modelling CTRL seems a seriously unpopular idea

 

[JSpencer]

Whilst I can understand Hornby considering doing a B train, I think it best they have not. The passions B generates are for extraordinary devisive reasons and it is best Hornby stays clear.

 

Concerning Warner Brothers license, they have covered good ground with Harry Potter but have yet to cash in on the DC super hero front. 3 cheap tiny entrance level scalextrix cars  are hardly going to draw the hordes of DC fans to Hornby's door.

Bluebell rolling stock was used in the WWI setting for the Wonder Woman film (so train set possibility) while Mercedes cars were used in the Justice League films (Scalextrix and Scale Autos possibilities). 

And what about these super heroes appearing as 1/76th scale figures in the Airfix range or even a WWI diorama kit with British and German troops and Wonder Woman changing down a Machine gun or throwing an armoured car in the air? Then Batman vehicle kits.... Aquaman Atlantis subs and kits and so on...

Loads of potential.

Edited September 26, 2019 by JSpencer

[Ravenser]

 

3 hours ago, The Stationmaster said:

I wonder why a container directly imported from China would be delayed by Brexit?  The only thing I can assume is that it will come through a port which also handles container traffic from mainland Europe and might get delayed in the queue for Customs examination - which it has to undergo anyway under existing arrangements.

 

Here is the original Hornby statement -

 

http://otp.investis.com/clients/uk/Hornby/rns/regulatory-story.aspx?cid=1477&newsid=1331546

 

2 hours ago, JohnR said:

 

Typically, a container ship from China will visit Rotterdam before then going to Felixstowe or Southampton. Presumably extra delays will be introduced in that. 

 

 

 

As somebody who does this for a living, I can't imagine any reason why deep-sea container imports would be directly affected

 

"International waters" mean exactly that. A Horatio-Hornblower-style naval blockade of ports is not a scenario anyone envisages.. The box clears when it hits the quay - not before. You do NOT clear the ship....

 

While Felixstowe customs might come under additional pressure if ro-ro traffic is diverted, I doubt if enough extra ro-ro capacity exists there to create serious pressure on deep-sea imports. And did the wider world notice last summer when that port implemented a new computer system and landside performance fell over like a toppled gantry crane? 

 

A shortage of haulage to get boxes off the quay might be an issue, if truck capacity was affected by other issues. But as noted - we went through all that at Flx / Soton last autumn/winter. Did anyone out there notice....???

 

On the other hand , if Hornby are bringing Hornby International product into the UK and distributing to the Continent from here, then yes there might be issues with that

[Dungrange]

11 minutes ago, The Stationmaster said:

The only problem I could see is that there would be a lot more inward cargo requiring Customs attention at the port if a container from, say,  Holland or Belgium destined to the UK required Customs clearance on arrival at the UK port - which means more work for the Custom Officers.

 

That's the point that Hornby are making, our Customs Officers will have much more work to do post-Brexit as most inbound cargo will require Customs clearance, whereas at the moment, the 50% of goods that originate from within the EU doesn't.   Therefore unless we double our existing customs infrastructure (staff and buildings) there will be delays to incoming supply chains irrespective of the country of origin.  This delay would obviously be worst in the immediate aftermath of a 'No Deal' and therefore impact the supply of goods for Christmas trading, which is obviously important to a company like Hornby.  That said, the impact on Hornby is unlikely to be any worse than for any other consumer facing business supplying the Christmas present market.

 

As for why someone at Hornby think a Brexit themed train set would sell well, I have no idea.  Maybe they think interest in it would go on and on, just like the whole Brexit saga in the House of Commons.  Personally, I think it was probably a way of gaining wider exposure for the Press Release.  It gets people talking about a trading update. 

[scottrains29]

The Brexit set could have a popular blue engine that's trying its hardest to move forward but can't because the troublesome trucks won't budge. The trucks would be a range of colours including red, orange, green, yellow, and also a small one that keeps changing!

[Ravenser]

Just now, Dungrange said:

 

That's the point that Hornby are making, our Customs Officers will have much more work to do post-Brexit as most inbound cargo will require Customs clearance, whereas at the moment, the 50% of goods that originate from within the EU doesn't.   Therefore unless we double our existing customs infrastructure (staff and buildings) there will be delays to incoming supply chains irrespective of the country of origin.  This delay would obviously be worst in the immediate aftermath of a 'No Deal' and therefore impact the supply of goods for Christmas trading, which is obviously important to a company like Hornby.  That said, the impact on Hornby is unlikely to be any worse than for any other consumer facing business supplying the Christmas present market.

 

As for why someone at Hornby think a Brexit themed train set would sell well, I have no idea.  Maybe they think interest in it would go on and on, just like the whole Brexit saga in the House of Commons.  Personally, I think it was probably a way of gaining wider exposure for the Press Release.  It gets people talking about a trading update. 

 

The pressure would fall on Dover and ro-ro ports, not Felixstowe/Southampton/ Gateway. And to be blunt, if clearance took 24 hrs not 3 hrs it's not a big issue - the box is sat in the stack. The blockages tend to be getting the duty/VAT money out of the client and getting the haulage covered