Hornby's financial updates to the Stock Market

[Silver Sidelines]

Over my forty odd years working life I have dealt with most of the major banks, Barclays, TSB, RBS, Halifax Bank of Scotland and Santander. My personal view was that Barclays stood out for their miserable behaviour whilst RBS were just not up to speed.  Seems to tie in well with this week's share price.

 

Ray

[siltec]

Visited our local Home Bargains yesterday. S gauge scalextric on sale but I came away with a couple of Airfix models at £2.99 each. Spitfire and Mustang. Made in India but nicely packaged and a quick look suggests well made. So are these unloaded stock or the real pricing for Indian made stock?

 

In Hobbycraft the Airfix quick builds which I think are made in the UK were reduced to £7.50 each. Not a big reduction so maybe just a summer promotion. If you have not tried one of these kits I suggest having a go. They are very well made and certainly superior to foreign made offerings also claiming to be quick build.

 

Declaration. A few years ago, against the advice of the building society financial advisor I bought a unit trust base on Indian companies. While it has had its ups and down generally it has been up and over the time period is well ahead of the units bought on advice from the building society.

[APOLLO]

Yes India seems to be doing well. A very large, young, english speaking and fairly well educated population.

 

What will hammer India, China and many other countries in the years ahead is an increasing shortage of clean drinking / crop irrigation water,, caused by many reasons the largest being climate change / global warming and overpopulation.

 

Hope it never happens, but it's mother nature who decides these things.

 

Brit15

[rue_d_etropal]

Ray, I have done IT work for both Barclays and RBS, and you are pretty close there. Still nicer people to work for than some in the world of finance.

 

The problems with water in India have been talked about for a few years. The main area for growing crops is being over used, and now lack of deep down water is drying up. It is a problem already.

I thought that Hornby had moved much of the Airfix stuff back to the UK(they said they were not going to move it out in the first place). I also remember talking to someone back in 2010. He had a Chinese wife, and spent a lot of time there, did business there(toy imports), so knew the system and the people. He said that the Chinese had a better work ethic than the Indian, and moving production to India would not be good for some companies. Granted he was biased, but he also had the experience. Remember that the Hornby move was prompted more by the take over of their factor in China, by Kader.

Edited June 29, 2016 by rue_d_etropal

[Ozexpatriate]

I thought that Hornby had moved much of the Airfix stuff back to the UK (they said they were not going to move it out in the first place).

Airfix has been made in India for years. The only exception I am aware of is the Quickbuild line which was made in the UK from its inception.

 

I bought a couple of Quickbuild "kits" for a lark. They are like playing with LEGO but the result is a nice representation. I think they are great for youngsters.

 

The problems with water in India have been talked about for a few years. The main area for growing crops is being over used, and now lack of deep down water is drying up. It is a problem already.

It's not just India. Draining the aquifers in arid places like the western US (particularly California) and Australia has become a huge problem.

Edited June 29, 2016 by Ozexpatriate

[jjb1970]

Draining aquifers, where's Immortan Joe when you need him eh?

 

The Airfix quickbuild kits are interesting as they use a Lego style construction technique but use it with curves and contours which replicate the shape of the subject rather which gives a pretty realistic final model. I think it works well and is great for youngsters.

[rue_d_etropal]

It was nearly 10 years ago when I was running shop, and Hornby told me Airfix would stay here. maybe I was only told half the story. The RNLI lifeboat was just being issued, and it was the first model I noticed was produced in India. When it comes to injection molding, we have companies round here who manage to export plastic boxes to China!

Other thing ith Airfix, is how much ended up with Heller in France. They relaunched a couple of years ago. Not sure where they are actually manufactured though.

 

I popped into Home Bargain, and saw the kits. No scalectrix though, but there was a lot of new stuff being put on shelves, so maybe in warehouse still. I know with the UE stuff it came in in dribs and drabs and different stores had different items. One advantage of having other towns so close. Sometimes only way you find out about these cut price items is when you see them on ebay. Have noticed some of the cheap Lima/Hornby stuff there but with a bit added to the price.

Edited June 30, 2016 by rue_d_etropal

[siltec]

The Airfix models I bought from Home bargains are, I think, models for export that have not been exported. When in a model shot I could not find the same models at all, well I found the same models but with different markings.

 

Those I bought one is a Spitfire V with one of the decal sets being for a US Army squadron in the UK in late 1942. No long after the US entered the war so I assume it was a quick et up using UK aircraft for experience. Something I had not come across before so I have learnt some history from a reduced price model from Home Bargains.

 

Other model is a Mustang with one set of USAF markings but the other set are for the Domincan Republic. A pretty minor interest this side of the pond I would think. At least when I make them I can use the unusual markings for interest.

 

Maybe Jouef or Electrotren will turn up in the budget shops!!

 

David

[Brit70053]

I recall that there was to be a Hornby Shareholders' meeting on 8th July to discuss a further share issue which the management hoped would raise about £8million to assist the company's financial situation.

Has anyone heard what the outcome of that meeting was, assuming it did take place ?

The web search I tried came up with a heading, but any text was obscured by a notice that the information contained was restricted to subscribers (of the website or to the share offer ?). Anyway, it wasn't available for me to view.

I'm surprised to find no comment on here, or is this an effect of restriction on this information?

My interest is purely hope for the survival of Hornby as a manufacturer of models (Railway and occasionally other subjects) of which I am an end customer.

 

Regards,

 

                 John

[Marcoblanco]

Something posted on Facebook 'model railways' group by somebody.. Who must have a trade connection...

[chris p bacon]

I recall that there was to be a Hornby Shareholders' meeting on 8th July to discuss a further share issue which the management hoped would raise about £8million to assist the company's financial situation.

Has anyone heard what the outcome of that meeting was, assuming it did take place ?

The web search I tried came up with a heading, but any text was obscured by a notice that the information contained was restricted to subscribers (of the website or to the share offer ?). Anyway, it wasn't available for me to view.

I'm surprised to find no comment on here, or is this an effect of restriction on this information?

My interest is purely hope for the survival of Hornby as a manufacturer of models (Railway and occasionally other subjects) of which I am an end customer.

 

Regards,

 

                 John

If you are an existing shareholder you are able to purchase shares at a reduced rate, the amount you can purchase depends upon the size of the share holdng you have.

[rue_d_etropal]

David said

 

Spitfire V with one of the decal sets being for a US Army squadron in the UK in late 1942

This actually ties in with something i was told at school. My headmaster told us that he flew Spitfires in USA or Canada, part of training program, some might have then been flown back here, not sure. Obviously makes sense to train pilots away from hostilities. Also US industry, despite being able to produce in quantity was still a few years technically behind Europe, and I think one of the USA planes was partly based on the Spitfire.

Edited July 11, 2016 by rue_d_etropal

[chris p bacon]

David said

This actually ties in with something i was told at school. My headmaster told us that he flew Spitfires in USA or Canada, part of training program, some might have then been flown back here, not sure. Obviously makes sense to train pilots away from hostilities. Also US industry, despite being able to produce in quantity was still a few years technically behind Europe, and I think one of the USA planes was partly based on the Spitfire.

We also trained pilots in South Africa.

[jjb1970]

In 1942 the US aerospace industry was not behind the UK, in many areas it was ahead of it. The USAAF used the Spitfire in WW2, they also used the Baeufighter and Mosquito.

[Stanier16]

We also trained pilots in South Africa.

Also Southern Rhodesia, Canada - the Empire Air Training Scheme

[Ozexpatriate]

Has anyone heard what the outcome of that meeting was, assuming it did take place ?

It is summarized here, linked from the Hornby Investor Relations RNS page.

 

The Company is pleased to announce that at its General Meeting held earlier today, all of the Resolutions set out in the circular dated 22 June 2016 were duly approved.

 

Further to this, the Company can now confirm that it will issue, pursuant to the Placing and Open Offer, 29,629,630 New Ordinary Shares at 27 pence per share, raising approximately £8.0 million. The issue of New Ordinary Shares will be split as follows:

• 21,518,686 shares under the firm element of the Placing, raising gross proceeds of approximately £5.8 million;
• 2,850,334 shares taken up under the Open Offer, including excess applications, raising gross proceeds of approximately £0.8 million; and
• 5,260,610 shares under the conditional element of the Placing, raising gross proceeds of approximately £1.4 million.

Good news for the company I'd say.

Edited July 11, 2016 by Ozexpatriate

[Adams442T]

David said

This actually ties in with something i was told at school. My headmaster told us that he flew Spitfires in USA or Canada, part of training program, some might have then been flown back here, not sure. Obviously makes sense to train pilots away from hostilities. Also US industry, despite being able to produce in quantity was still a few years technically behind Europe, and I think one of the USA planes was partly based on the Spitfire.

 

I don't know of any 'based' on the Spitfire; you may be thinking of the Mustang P 51 B, which had a similar appearance, and was transformed into a superb fighter aircraft when its original Allison V-12, a poor performer, was replaced with the Merlin (Spitfire) engine.

[jjb1970]

The P51 Mustang was arguably the finest fighter of the war (at least prior to the jets), combining excellent flight performance and range. The RN FAA was pretty much reliant on US aircraft, the Swordfish gave superb service but it was archaic and the Fulmar was woefully inadequate as an air - air fighter. Without large numbers of Hellcats, Wildcats, Corsairs and Avengers they'd have really struggled to field suitable aircraft. The Seafire was superb once airborne but its range was inadequate for a naval fighter and it was not really strong enough for the stresses of carrier ops.

[Brit70053]

Marcoblanco :

Posted Today, 20:23

Marcoblanco said:

Something posted on Facebook 'model railways' group by somebody.. Who must have a trade connection...

 

Brit 70053 said

Thanks Marcoblanco, but I don’t do facebook , so wouldn’t be able to view the entry.

:

Posted Today, 20:39

 

Chris P Bacon said:

If you are an existing shareholder you are able to purchase shares at a reduced rate, the amount you can purchase depends upon the size of the share holdng you have.

 

Brit 70053 said:

 

Thanks Chris P Bacon, it was those details which were posted in this thread sometime in June which prompted my query. Many comments had been posted about the prospects for Hornby’s viability dependent on the take up of this offer, that’s why I was surprised there was no mention of the outcome, happily positive, since the 8^th July.

 

Posted Today, 20:56

 

Ozexpatriate said:

 

It is summarized here, linked from the Hornby Investor Relations RNS page.

 

Brit 70053 Said,

 

Thanks for that welcome information Ozexpatriate, I agree that’s good news for the company and modelers, though those whose livelihoods are in jeopardy as a result of the financial issues Hornby face have my sympathy.

 

Regards,

 

                 John

[toboldlygo]

David said

This actually ties in with something i was told at school. My headmaster told us that he flew Spitfires in USA or Canada, part of training program, some might have then been flown back here, not sure. Obviously makes sense to train pilots away from hostilities. Also US industry, despite being able to produce in quantity was still a few years technically behind Europe, and I think one of the USA planes was partly based on the Spitfire.

 

I know it's slightly of topic, but if memory serves the Spitfire where used by the USAAF 4th Fighter Group until around 1943. I remember one the many Airfix Spitfires I built came with alternative markings for the USAAF as well.

[Metr0Land]

I know it's slightly of topic, but if memory serves the Spitfire where used by the USAAF 4th Fighter Group until around 1943. I remember one the many Airfix Spitfires I built came with alternative markings for the USAAF as well.

 

Continuing with the theme.  Sptifire MB950 at USAF museum Dayton Ohio July 2006 (and yes that's a USAAF emblazoned Mosquito behind)

 

 

See also:

 

http://www.americanairmuseum.com/aircraft/18520

[Fat Controller]

We also trained pilots in South Africa.

Along with Kenya and Rhodesia. The issue wasn't so much being away from hostilities, more the relatively predictable weather meaning the pilots could accumulate hours more quickly. My old geology/geography teacher did his war service at one of the Empire Flying Schools in Kenya, serving as a meteorologist. He said he didn't need to do very much; I believe it was where he learnt to play golf.

The USAAF used Spitfires, both MkVs and one of the later PR versions; they also used Mosquitos and Beaufighters at various times.

[rue_d_etropal]

One this this slight detour shows is how worldwide model making is. Possibly more common parts in military modelling than in railway modelling though, but if HO had been adopted as scale then maybe......  Then again with  military modellers using 1/72 scale , very close to 1/76, it would have been a bigger gap to plug.

Edited July 16, 2016 by rue_d_etropal

[jjb1970]

The question of scale and failure to harmonise standard scales for models in a certain size range is not unique to railways. To take a few examples;

 

aircraft and some military vehicles and figure - 1/72, UK RTR trains, some military vehicles and figures - 1/76, non-UK RTR trains - 1/87 and vehicles made for the HO rail market

 

cars - 1/43, aircraft - 1/48, commercial vehicles - 1/50

 

plastic military vehicle kits and figures - 1/35, toy soldiers and some military vehicles - 1/32, other toy soldiers - 1/30

 

In all of these cases the overall size of the models is similar yet the differences can be significant enough to make using models from the different scales together problematic. Oddly, it also indicates that OO would be a better standard railway scale than HO if it wasn't for the gauge discrepancy of OO RTR.

[Porcy Mane]

In all of these cases the overall size of the models is similar yet the differences can be significant enough to make using models from the different scales together problematic. Oddly, it also indicates that OO would be a better standard railway scale than HO if it wasn't for the gauge discrepancy of OO RTR.

Pedant Mode On

 

I agree with your point about no harmony between scales in different hobbies but surely 00 is not a scale. It is a gauge.

1/76.2, 1/72 etc is a scale.

 

Pedant Mode Off

 

P