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Hornby appoint new CEO


Andy Y

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Was in Hattons myself a couple of days ago and would agree with all that you have said. I would say that in all the years that I have been going to that shop I have never seen it so short of Hornby stock very worrying I would agree

I wouuld agree with this based on my last visit to Hattons a couple of weeks ago. Also, I decided I wanted a particular Hornby loco and did a web search. I was actually quite shocked at how little spread of Hornby product there seemed to be available. I suspect it's going to take a lot of time, effort, and cash to correct Hornby's problems. I just hope they start to "turn the ship" in time.

 

Colin

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Why does that one sentence make me think why things (not Hornby) are sometimes very bad in Industry? :D

Agreed. If existing policies decided by the board aren't cutting the mustard, appointing a CEO who is in total agreement with them isn't likely to help.

 

John

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I wonder what time of day this was announced - the shares dropped several pence earlier today although they recovered (but are still on a largely declining path at present.  i reckon the first stock market 'test' will come in the next couple of days.

 

The RNS was announced at 07:00, before trading started for the day.

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Agreed. If existing policies decided by the board aren't cutting the mustard, appointing a CEO who is in total agreement with them isn't likely to help.

At Hornby you have a new board who fired the old executive team for non-performance. They have now hired a new executive. You'd hardly hire someone who disagreed with you from the get go.

 

The presumption is that you hire someone new to do something different from what was happening before.

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The RNS was announced at 07:00, before trading started for the day.

 

Thanks to this link, it looks like there has been another announcement that I haven't seen mentioned (and apologies if I missed it) which relates to other members of the Board of Directors. Others have left but I have copied below an extract about the new members . . .

 

 

 

David Adams has enjoyed a long career primarily in the retail sector.  He is currently a Non-Executive Director at FTSE 250 retailer Halfords Group, Chairman of Musto and also Non-Executive Chairman of Conviviality Retail and Park Cameras.  He was previously Chairman of Snap Equity, the company that led the restructuring of Jessops.  Prior to that, he was Deputy Chairman and Group Finance Director of House of Fraser. 

 

Charlie Caminada has a background in the global media and entertainment industry.  He was previously Chief Operating Officer of HIT Entertainment, which is now part of Mattel.  His most recent position was the Founder and Chief Operating Officer of Ludorum, a media investment company that focused on managing the IP franchises for children's entertainment brands, including Chuggington.  Charlie led the company's IPO on AIM in 2006.

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Thanks to this link, it looks like there has been another announcement that I haven't seen mentioned (and apologies if I missed it) which relates to other members of the Board of Directors. Others have left but I have copied below an extract about the new members . . .

 

 

 

David Adams has enjoyed a long career primarily in the retail sector.  He is currently a Non-Executive Director at FTSE 250 retailer Halfords Group, Chairman of Musto and also Non-Executive Chairman of Conviviality Retail and Park Cameras.  He was previously Chairman of Snap Equity, the company that led the restructuring of Jessops.  Prior to that, he was Deputy Chairman and Group Finance Director of House of Fraser. 

 

Charlie Caminada has a background in the global media and entertainment industry.  He was previously Chief Operating Officer of HIT Entertainment, which is now part of Mattel.  His most recent position was the Founder and Chief Operating Officer of Ludorum, a media investment company that focused on managing the IP franchises for children's entertainment brands, including Chuggington.  Charlie led the company's IPO on AIM in 2006.

These appointments could be interesting in the wider context of Hornby Group (not just toy trains) as they suggest Mr Canham is looking for folk with a wider base and knowledge in the leisure industry business.  Quite what these appointments would mean for Hornby Group is obviously difficult to divine but they clearly strengthen and widen the base of knowledge and experience on the Board which must reassure shareholders and in a a publicly quoted company that is a critical - and together with the new CEO could be responsible for the slight recovery in the share price.

 

However Hornby still has a name built around a model railway reputation and history (even if much of the latter was bought-in) and it will be interesting to see how they tackle that in the coming year.  While I am prepared to give them the benefit of the doubt it is clear that the model railway brand faces an uphill fight from a poor starting point with the several years of supply problems now exacerbated by negative perceptions of quality (in at least part of the market) plus apparently increasing instances of poor quality control in manufacture and/or packaging.  So in my view - from the railway modelling standpoint - the most critical appointment  (or confirmation of person in post?) will be that of the Brand Manager for Hornby Railways and what he or she might be able to achieve in what amounts to an increasingly shrinking window of opportunity to salvage the brand's reputation, and possibly even its dominance in the marketplace.

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Thanks to this link, it looks like there has been another announcement that I haven't seen mentioned (and apologies if I missed it) which relates to other members of the Board of Directors. 

 

Their appointments were mentioned here, back in early January, Mike; in the "Hornby New Trade Terms - What will it mean for the customer" thread.

In the last 12 months or so, they have acquired a new Chairman, a completely new board, including a new Finance Director and a new CEO.

 

These appointments could be interesting in the wider context of Hornby Group (not just toy trains) as they suggest Mr Canham is looking for folk with a wider base and knowledge in the leisure industry business.  Quite what these appointments would mean for Hornby Group is obviously difficult to divine.......

 

1. Retail experience - Hornby's branching out into direct retailing, from both bricks and mortar and cyberspace (I expect their poor showing in that dept. will be transformed at some stage in the coming months or years) ???

2. Brand tie-ups with entertainment companies ?

 

 

 

.

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Thanks to this link, it looks like there has been another announcement that I haven't seen mentioned (and apologies if I missed it) which relates to other members of the Board of Directors. Others have left but I have copied below an extract about the new members . . .

 

 

 

David Adams has enjoyed a long career primarily in the retail sector.  He is currently a Non-Executive Director at FTSE 250 retailer Halfords Group, Chairman of Musto and also Non-Executive Chairman of Conviviality Retail and Park Cameras.  He was previously Chairman of Snap Equity, the company that led the restructuring of Jessops.  Prior to that, he was Deputy Chairman and Group Finance Director of House of Fraser. 

 

Charlie Caminada has a background in the global media and entertainment industry.  He was previously Chief Operating Officer of HIT Entertainment, which is now part of Mattel.  His most recent position was the Founder and Chief Operating Officer of Ludorum, a media investment company that focused on managing the IP franchises for children's entertainment brands, including Chuggington.  Charlie led the company's IPO on AIM in 2006.

Those are non-execs on the board.  Not directly doing day to day things.  However, you can pick their brains on expertise (restructuring Jessops or brand management at HIT).  

 

 

Hattons list 147 Hornby steam locos I counted 7 with more than 10 in stock.  The rest are limited but available or pre order.  

 

Conversely, perhaps you would expect a low stock period in Jan and Feb? 

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The tone of the article is not optimistic about high quality RTR UK prototype models, or at least such being centre of Hornby's strategy...

But surely the announcements of the 2014 range point in a different direction - a 700 or D16/3 is hardly 'mass market' with a future appeal of thousands knocked out at toyshop level?  I don't know if they'll deliver the detail and quality but they might and if they do they, and the J15, will represent a new sort of approach from Hornby and a sign that it is beginning to understand that part of the market which is prepared to pay £100 plus for a relatively small engine which delivers to a better standard of detail etc.

 

Mind you if they fail to deliver to the standard that market area normally expects nowadays it could seriously backfire on them

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The tone of the article is not optimistic about high quality RTR UK prototype models, or at least such being centre of Hornby's strategy...

 

I think they are really going to be working hard on strengthening the synergies between their different product lines and working hard on leveraging their brands.  :scratchhead:

 

 

.

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I think they are really going to be working hard on strengthening the synergies between their different product lines and working hard on leveraging their brands.  :scratchhead:

 

 

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Just because you've been on a management-speak course (or did you borrow a book?)  :jester:   And what about growing the business - there seems to have been enough 'manure' poured onto it in recent years to make that an easy task.

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..........what about growing the business - there seems to have been enough 'manure' poured onto it in recent years to make that an easy task.

 

That conversation is still ongoing, but I'm sure, going forward Hornby will be focusing on their core values, "leading to blue-sky discussions that will produce a very quick, mutual understanding of requirements to manage them well throughout the entire process.”

 

Hornby's purchase of the Matillion Business Intelligence randomiser is a major step forward in understanding their business. Each press of the "process" button will result in the production of 25 long words arranged in a random fashion, with vague meaning. Such valuable output will provide added value to their business reporting, shareholder statements and communications with multifaceted media interfaces.

 

New CEO Richard Ames has already put the system to the test. The first detailed analysis produced, on Hornby's recent performance provided the following enlightenment....

 

 

the - while - ship - deckchairs - the - sinks - rearranging

 

 

 

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I think they are really going to be working hard on strengthening the synergies between their different product lines and working hard on leveraging their brands.  :scratchhead:

 

 

.

 

You forgot to add "going forward".  And the potential of flexible income stream realisation in the context of on going asset management and the near-term influence of a capital float bearing on the mid-term risk profile for the group, given the potential of the above synergies and brand equity..

 

The opinion I gave a few messages ago was more a reaction to the style of language used in the article in the link than anything else.

 

It's good that we can have a frank and clear exchange on these issues.

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