Hornby's financial updates to the Stock Market

[Ozexpatriate]

There's a lot Hornby could be doing for youngsters in model railways.

All kids toys have VR, Apps and interactivity these days.

The models themselves could have more kit based interactivity too.

Scalextric has invested in a form of augmented reality with the ARC app.

 

Hornby has RailMaster and eLink, intended for a PC though I don't know if they offer a throttle app. I don't remember the specifics.

 

Software applications are very expensive to get right, and something dedicated to the model railway market doesn't have the vast number of consumers that a mobile 'phone game will have.

[Ozexpatriate]

So in the kit market, a case could be made that Airfix are being very innovative already (I think the snap together range are moulded in the UK?)

There is someone with a very strong LEGO-compatible model train kit presence in the toy market already. They have outstanding play value.

 

OK that was a bit facetious.

 

If Hornby wanted to make LEGO-compatible models of British outline trains to the LEGO gauge, they could. Frankly that's the way to do Thomas and Friends. They wouldn't be cheap. The Airfix Quick-Builds are not cheap either.

[railroadbill]

There is someone with a very strong LEGO-compatible model train kit presence in the toy market already. They have outstanding play value.

 

OK that was a bit facetious.

 

If Hornby wanted to make LEGO-compatible models of British outline trains to the LEGO gauge, they could. Frankly that's the way to do Thomas and Friends. They wouldn't be cheap. The Airfix Quick-Builds are not cheap either.

Mind you, with a Lego railway you do need a big room to put the layout in...  :-)   (Model Engineering exhibition  Alexandra Palace 2015). 

 

But as adb968008 rightly pointed out from his trip to Hamleys, it's all expensive....

 

Actually, having looked at the Lego cargo train ad you posted, it does come with lots of bits to play with.....

Edited April 10, 2017 by railroadbill

[rue_d_etropal]

Maybe Hornby should re-introduce their Battle Space trains(They sort of tried with a pathetic set, with no real play value). Guns that fired missiles, exploding wagons.Might be a bit sensitive politically, but military themed toys sell.These are still the type of thing youngsters will play with. David Boyle, when he started Dapol, made similar comments. The American market has this type of fun models/toys to play with.

Combine this with mini flying drones with cameras etc, or even objects which can be dropped. Yes, put the fun back into trains. What we have at the moment is what oldies want for themselves. Having seen a deonstration of one of these mini drones with built in video camera, I was impressed, and by next year it will probably be even better.

 

The discussion about computer games and how it is taking youngsters away from the hobby, is old news. Just look at Beatties adverts from the 80s to see Commodore games machines being advertised, in RM. The virtual railway computer area is pretty popular, but I think it is not the younsters but more like students and young professionals who are involved.

I am not sure how long companies such as Hornby can depend on the collectors market. It is a bubble that bursts every so often, and seems to based on pure nostalgia. I suspect the average age of those buying the Peckett is pretty high. Looking at the prices being quoted, and the bids that are being made online, I can't see it being young people buying them.

[Ron Ron Ron]

....mid term I don't think there can be any doubt that the key market is the adult market for scale models, selling to collectors and what are termed serious modellers.

A market with disposable income and willing to spend for the right product.

The average age of people in that market might be politely described as not being especially young.

 

Building a business around a market of advancing years makes sense to make profits in the short - mid term but the long term future will need to attract new entrants into the hobby as to be blunt about it you don't need to be a genius to figure out what's going to happen to that golden egg laying senior market over the next ten - twenty years....

 

OK, but how do you then make the dramatic leap from the "not being especially young " to.......

 

On the other hand the things that will attract youngsters are probably not the same as the things people on this board are looking for. One of the biggest mistakes many hobby and special interest markets make is that they work backwards from what adults want and what those adults want children to want rather than looking at what children want (i.e. play value). ........

Many will have noticed that there's a 40, 50 or 60+ year gap between the two.

The popularity of train sets with children was tailing off 20 or 30 years ago. A renewed effort to revitalise this sector of the toy business will not have the assumed effect for decades.

Once most of us has ceased to remember who we are, or have passed through the exit door, do we expect the model railway industry to then close down and go into mothballs, to be resurrected from hibernation in another 30 years or more?

 

 

The only answer I can see, is in promoting the hobby in general and trying to enthuse those adults who will become the next batch of old codgers, to join in.

The question is, what will make the hobby (and the products companies like Hornby make) sufficiently interesting and attractive to stimulate people into taking up the hobby (and buying the goods)?

 

I know it's not a popular opinion around these parts, but I think this supposed (possibly imagined) link between kiddies toys and the railway modelling hobby is almost like a religious believe.

Blind faith with no evidence to back it up.

 

I had a train set when I was a child, back in the 1960's, but I'm not sure that has anything to do with me taking up an interest in model railways back in my mid/late 40's.

Much more than my train set, my childhood toy passion was for die-cast Corgi and Dinky toys; but I haven't gone on to collect die-cast models, or to model road vehicles in my adult years.

It wasn't some sort of lead-in to motoring either.

As I got into my early teens, it was Airfix models; but in adulthood I've never build model aircraft of any description.

I also had toy guns and machine guns. My friends and I loved playing "war" in the local woods and fields. I'm not a member of a rifle club, don't possess a shotgun and haven't served in the military.

 

There's nothing better than seeing young kids playing with and thoroughly enjoying their toys and there's no reason why toy trains shouldn't feature as well, if that's what sells.

Any walk around a Toy'R'Us will show that there are plenty of toy trains for sale. Just not of the Hornby model railway type.

I just don't see any correlation between those toy trains and the model railway hobby. Other than "big kids" playing with toy trains, as opposed to little kids playing with toys, that just happen to be toy trains.

 

The toy market used to be a fairly sizeable part of Hornby's business, but today it appears from all evidence that their success and bread and butter lies mostly elsewhere (adults and collectors).

As others have already said, the problem isn't the highly detailed scale models for the adult market. Good models made in appropriate quantities sell well...even sell out quickly.

Could it be that Hornby, although not a large business, are too big to lose most or all of their toy train business and concentrate mostly, or solely on their adult market, even if that's what they'd prefer to do?

That the "adult" market couldn't be scaled up sufficiently to make good the shortfall?

The accountants and business guys might be able to help here.

Is there simply too much equity tied up in the company, to allow it to shrink in such a predetermined manner?

 

 

Enough....

 

 

.

Edited April 11, 2017 by Ron Ron Ron

[Crewlisle]

To help Hornby get back into profit & encourage more youngsters into the hobby, it must start at exhibitions.  This is the public face of our hobby.  When you go to your next exhibition, look at the average age of the visitors?  We are all over fifty!

 

What exhibition managers have to do is to ask each layout invited what they have on their layout to encourage youngsters to take up the hobby of railway modelling.  All they see at present are many 'Do not touch' signs, stern faced older operators with the layout forming a barrier between them & the visitors.  What exhibitors should have is an operator or PR member on the outside of of the layout talking to families & children.  And what harm would it do on even the most detailed & prototypical layout to have Thomas the Tank Engine lurking in some overgrown siding waiting to take its turn in the display?  All us exhibitors take ourselves much too seriously!  The final thing to keep children of all ages interested is to keep things moving.  Whether it is a small branch line or roundy-roundy layout, movement is the key to children's interest.  To get more of these 'family friendly' layouts, we may have to sacrifice a few super detailed/prototypical layouts few of us have the skill to create or can aspire to.

 

On my layout 'Crewlisle' we always have a minimum of two & sometimes as many as four locos/trains running simultaneously.  I have a turntable operated by Meccano gears with operating handles both inside the operating well & on the outside for children to turn locos.  Thomas the Tank Engine + coaches Claribel & Annie are ready for their turn & normally reside in Platform 2 of the high level terminus.  My outside operator chats with the families & if the children want to, he allows them to run any loco or Thomas.  With one thumb on the emergency stop/control knob they can drive a loco onto the turntable, turn it with the handle & drive it back to where it came from.  Or take control of Thomas or a train on the continuous run & try & stop it in the station.  For the older children you can point out that layouts can be run from smart phones, tablets or laptops & with DCC you can control as many or few things on the layout as you want.  With operating a layout at an exhibition makes their day, pleases the parents & you have a potential recruit to railway modelling!  The other weekend at Ally Pally a father & his young son watched 'Crewlisle' for almost two hours for all these reasons.

 

Peter

[john flann]

I agree with every word of the above post and the sentiments behind it..

 

I obviously cannot attend UK shows but the next best thing is YouTube.

 

And there last evening I was watching Crewlisle and thought what a customer friendly layout out is. Much activity, presentable scenery and it's origins very apparent. There too were a bunch of customers of all ages quite enthralled.

 

Clearly they were being entertained.

 

On the other hand I saw large club type layouts of single track design, few trains running, members  fiddling with couplings, quite good scenery but nothing whatsoever to attract the customer, informed or uninformed. It was boring. The members too behind the layout failed to interact with what few customers there were and all wore unwelcoming features-no smiles or even gave the impression that they were enjoying themselves.

 

I do write from experience for when I was in the UK I was a regular exhibitor. I never discouraged people from touching (none ever did any harm), spoke to the customers and always had a train(s) running.

 

Members complain about the lack of new individuals entering the hobby-is it surprising?

Edited April 11, 2017 by john flann

[dogbox321]

Hi,

     Whilst I love my railways and have the 'privilege' that my 2 and a half year son loves his trains - too much sometimes.  He is always on the laptop or my wifes phone, wanting to watch HST's, and I have given him a really old Hornby HST from the 80's which he loves to push along the floor - it goes with him pretty much everywhere!  Even his Nanna on the wifes side lets him have her laptop on, to watch trains.  I took him to Stafford Model Railway show, and for saying he's a pretty shy only child....as we held him towards the exhibits he was saying 'move' and wafting his arms to get people to move so that he could see the layouts on show - he was that excited.  Thank you to those who kept running Voyagers and HST's around for him!   As we have a collection of models, I have started to build a layout - Nathald St. Geran.  As unfortunately I have never, ever got around to building one.  But have said now is the time for both my son, my dad and of course me.  

 

One question I have asked myself many times in recent years, is would I start in this hobby now?  No!  Bottom line is pretty much everything costs too much.  Simon Kohler started the railroad range to remove this barrier, but that has even got pretty expensive now.  Ok, you can start with a basic train set for about £100, but for a decent train of coaches/wagons plus locomotive its getting close to £300, three or four trains, plus track, baseboard etc., and your going to be looking at, at least £2k, even if done slowly over time!  Plus you then have to have the skills to build your train set up etc, and its a daunting task as with one mistake something can be ruined.

Most young people getting jobs are on relatively low pay, and then there are other priorities like relationships, deposits for houses, first cars etc.  A computer offers a variety of options for entertainment, plus you can buy a game within the grasp of a few weeks pocket money.  If you want a new model train, it would be save a few months, hope its still available and not sold out, and hopefully by then you could probably search the internet and find a shop with excess stock with a sale on!   And lets face it, the hobby is only going to get more and more expensive and price is a significant barrier to entry.

 

Its not a rant, just an opinion.

[JSpencer]

There are some massive expensive Lego sets in toy stores, like the Imperial Star Destroyer. My son has built many of the smaller Star Wars Lego sets but you won't see us buying him the expensive ones.

 

I have to really wonder then if these big Lego sets are really targeted at youngsters or adults. They must sell however as Lego fills at least an entire ally.

 

You can buy a small Lego kit, it will stand alone. Airfix can (and has been to an extent) following the same root.

 

Trains are different however. You need a fair amount of kit to get started (a train set). People are hardly likely to buy one wagon as the starting point...

You also cannot do the "Darth Vader" train set since there is no such train in the film. The last time we had a train in a film role was Harry Potter. 

 

There is romance in steam and trains are a luxury item like perfume. The TV advertising required to sell that though would be expensive. You would need to ensure all shops are stocked up ready to go following such a campaign. And failure of the campaign would be the death knell of Hornby....

 

It is easy for Mr Anton to say "not enough has been done to bring in young blood to the hobby" but what does he propose?

If Hornby shifts resources from its current detailed model market to kids, are we sure that it will be up'n'up and we are not missing out on the known market element? (or leaving that to the competition?).

 

We need to see ideas on how this can achieved. It is too easy to state what is wrong, harder to determine the fix required. And sometimes certain weaknesses must be accepted because to counter them may just eat up resources for few returns.

[andyram]

I totally agree that the rising prices are a barrier to the hobby. However I do not think we should press the panic button over the idea that we are an ageing hobby. The pattern has been there for many years - people gain an interest through a train set in their early years, build a simple layout with a parent or grandparent before dipping out of the hobby in their teenage years and early adulthood before returning when older and perhaps having their own property. If you read articles in model railway magazines you will see many a layout owner describing such a route through the hobby. The fact is older people have more disposable cash, more time and potentially more space.

As I walk around model railway shows I agree that the majority of visitors are from the older age groups, but there are many families with younger children. I am sure many of these will start with a cheap train set at some point. Admittedly the train sets could be improved to add more play value which may draw more people in. Yes the use of new technology could attract the teenage market, but realistically I doubt many people from the teenage / young adult bracket will be starting in the hobby. The important thing is to provide fun train sets to grab the interest early, then detailed models that draw more people back in later in life.

Speaking for myself I certainly followed that route. For me it was a simple Lima train set that arrived at Christmas in the early 1980's. I expanded that onto a baseboard and maintained my interest until secondary school demands took over in my mid teens. Through my late teens and twenties there was no chance of containing in the hobby. GCSE pressures, A Levels, University, starting work and not having space at home all kept he away from layout building. Yes I did still visit shows and from time to time added to my collection when I had disposable cash. I finally returned to the hobby when I bought my first home in 2005, aged 30. It was not until eight years later that I actually found the time to complete my first layout when pushed to do so for a show I was organising. Now, at 41, work and family life continue to get in the way of layout building and operating. I am sure many more people of a similar age have the same issue to deal with.

Hornby therefore need to target two specific areas. The youngsters in order to ignite the hobby and the older demographic who are returning. I am not sure they are doing the younger end well enough. I certainly agree that the Railroad range has lost focus. This should be a cheap range to help youngsters expand their layout. Brightly coloured small steam and diesel tank engines, simple models of famous trains and maybe more modern types too would fit this idea perfectly. Perhaps play value scenic items with operating parts should also fill this range - more like the car loading ramp, stone leader etc. I agree that a Crosti 9F, D16 etc do not really suit this idea.

 

So target getting the youngsters to gain their interest, do not waste time and funds targeting an age group that will rarely participate. Make sure the returning modellers get the quality they are seeking. I would suggest doing away with the niche models like the Fathers Day wagons that,not me, do not fit with either market.

[gc4946]

Virgin Trains and their co-organisers Welcome to Yorkshire, Network Rail and the National Railway Museum are organising a special four-train side by side event on 23rd April, featuring four generations of ECML express trains : Flying Scotsman, HST, 91 and class 800 Azuma.

 

http://www.nrm.org.uk/aboutus/pressoffice/pressreleases/2017/march/four-trains

 

I hope Hornby capitalises on this special event and pull out the stops to release a model of Virgin's Azuma so individuals can recreate this procession in miniature!

 

After all they already have models of all the other trains participating in this event.

 

If Hornby could release an Azuma at this event or shortly afterwards (probably unlikely), it would be a good sign that they're returning to good health and being responsive to public interest.

 

 

[Widnes Model Centre]

From our experience, young children/teenagers do come into the shop. They are in the mainlooking for trains that they can see every day only 1/2 a mile away or running at the back of Hattons own store on the WCML. The younger ones are looking to see the Thomas range. Hornby brought out Spencer some years ago as a Limited Edition with a price of around £120.  Our location still has a great many train spotters of all ages. Drive from Widnes to Warrington and go over a bridge and you will often see them there. Go to the nearest Heritage Railway and you will also see lots of youngsters, but have they been taken there by grandfathers/fathers? Try taking them on a Thomas Day and you had better get there early.

 

Many posters have already stated they need the layout on a baseboard. This area must be full of layouts under beds and hinged on bedroom walls. The local diy shop is the recommended place to visit after the model shop. Our local family run diy shop now has an extensive knowledge of what is suitable for model railway baseboards.

 

Realistically there is nothing in the current Railroad range to satisfy their needs.

 

Airfix is still very popular with youngsters. Scalextric is not so as the space required means it generally has to be lifted up after every use. Corgi is a non starter in our experience.

 

Back to the matter of Hornby and as I hinted earlier, bank balance and p and l can be millions of miles or £'s apart.

[Legend]

Sorry to be pessimistic here but the thing is I really don't believe things like car unloading ramps , log tippers, stone loaders or ducking giraffes actually will do it for today's kids . Even my youngest Great Niece at 3 reaches for her grans laptop to play Peppa Pig, so kids and their expectations have moved on . At the teen end I've written in my last post about XBox 4 and the VR goggles . There is just no comparison between that and the typical Hornby Catalogue view of the 70s of an early teen watching in delight as he looks at a pannier tank running round an oval with one point to a siding. Sorry it just doesn't do it any more. I think I have come to the conclusion that train sets for kids are a lost market.

 

However trainsets for adults may well be the way forward. Mid thirties/ forties . Maybe that's where the new blood really is. Someone that can appreciate an express train speeding past or a large stone train or maybe has seen a steam loco at his local preserved railway or yes , even the Flying Scotsman and wants to emulate it on a model railway or simply have a model of it. But we do have to make entry into the hobby as easy as possible. Cost is a significant barrier to entry. Yes you can start model by model but to have an interesting model railway takes space and money. So there does need to be a range enticing people into the hobby at reasonable cost.

[andyram]

Sorry to be pessimistic here but the thing is I really don't believe things like car unloading ramps , log tippers, stone loaders or ducking giraffes actually will do it for today's kids . Even my youngest Great Niece at 3 reaches for her grans laptop to play Peppa Pig, so kids and their expectations have moved on . At the teen end I've written in my last post about XBox 4 and the VR goggles . There is just no comparison between that and the typical Hornby Catalogue view of the 70s of an early teen watching in delight as he looks at a pannier tank running round an oval with one point to a siding. Sorry it just doesn't do it any more. I think I have come to the conclusion that train sets for kids are a lost market.

 

However trainsets for adults may well be the way forward. Mid thirties/ forties . Maybe that's where the new blood really is. Someone that can appreciate an express train speeding past or a large stone train or maybe has seen a steam loco at his local preserved railway or yes , even the Flying Scotsman and wants to emulate it on a model railway or simply have a model of it. But we do have to make entry into the hobby as easy as possible. Cost is a significant barrier to entry. Yes you can start model by model but to have an interesting model railway takes space and money. So there does need to be a range enticing people into the hobby at reasonable cost.

 

I have to agree that the examples I used may not be the correct things for today. However I was using them as an example. Perhaps it would be a good idea for Hornby to theme their train sets around other recognisable children's characters. You mention Peppa Pig - so do a red liveried loco, as Miss Rabbi's or Grandpa Pig's train. Add wagons with some figures and you have additional play value. Perhaps a green liveried loco as "The Greendale Rocket" from Postman Pat. You could even package that with the working post van! Preserved railways have marketed such events very well as a way of avoiding paying the massive Thomas fees these days. The Great Central has run Peppa Pig, Postman Pat and even Paw Patrol events in recent years.

[Legend]

I have to agree that the examples I used may not be the correct things for today. However I was using them as an example. Perhaps it would be a good idea for Hornby to theme their train sets around other recognisable children's characters. You mention Peppa Pig - so do a red liveried loco, as Miss Rabbi's or Grandpa Pig's train. Add wagons with some figures and you have additional play value. Perhaps a green liveried loco as "The Greendale Rocket" from Postman Pat. You could even package that with the working post van! Preserved railways have marketed such events very well as a way of avoiding paying the massive Thomas fees these days. The Great Central has run Peppa Pig, Postman Pat and even Paw Patrol events in recent years.

Don't get me wrong Andy, certainly worth a try . The additional licence fees might make it expensive though, Hornbys Thomas range is not exactly cheap. I think Bachmanns ones , ironically are less expensive, but really only marketed in US. But my point is I think kids , and their parents, who are probably also a generation devoid of trainsets, will lose interest quickly because of the lack of functionality compared to a computer game/ tablet . I don't agree with kids being given tablets at a young age , but the reality is that's what's happening out there.

[34theletterbetweenB&D]

My own opinion is that the largest currently sustainable market is adult. Yes, time's conveyor does mean it is a foreseeably diminishing market. However it is still recruiting and at almost any age, although circa 50 years old and up would probably define most new entrants. Therefore it still has some future and the prizes go to the suppliers that best adapt to that.

 

What to do for a children's market other than TTTE for the young, I haven't a clue! Small children often want to see Thomas on the layout, so I made one, with a hole where they can put the face they make out of plastidough. He knocks some wagons around, tows a couple of coaches which are A&C even though bearing no resemblance to what's in the books, and they are done. Last one, after twenty minutes asked to be read a story from a TTTE book, and she fell asleep over that. Didn't ask to see Thomas two weeks ago, but asked me to read her another TTTE story.

[Caledonian]

Ominously, so far as attracting younger modellers is concerned, I'm reminded of Meccano.

[Clearwater]

Hornby is introducing a battery powered set similar to marklin's my world. The latter is HO - will work on flat floor or tracklaid in mins on carpet. Prob also runs on brio (not tested). Great stepping stone from brio sets, which most kids love, to more complex railways. That said, the range of wooden railways is pretty extensive and some complex layouts can be built...

I'd wager those sets sell well in heritage railways but l, in the main, are not stocked by model train shops.

David

[Mel_H]

A story has been published by Alliance News, giving another viewpoint on the subject

 

 

UPDATE: MOVE TO OUST Hornby CHAIRMAN IS DUE TO "INEFFECTIVE" STRATEGY

[ 10 Apr 2017 11:52 ] 

LONDON (Alliance News) - A request to remove the chairman of model railways and collectibles retailer Hornby PLC is due to an "enormous" loss in shareholder value and the company's "ineffective" strategy, according to the man who is campaigning for Chairman Roger Canham's removal.

 

Ian Alexander Anton wrote a letter to Hornby in which he requisitioned a general meeting to propose to shareholders that he himself replace Canham as chairman.

 

Hornby acknowledged the letter early on Monday in a statement in which it advised shareholders to take no action.

 

In its statement, Hornby said Anton's letter had been signed on behalf of ROY Nominees Ltd and HSBC Global Custody Nominees (UK) Ltd, which together hold 20% of Hornby's shares.

 

Canham joined Hornby in 2012 and was made chairman in 2013. He is also chairman of Phoenix Asset Management Partners, which is Hornby's biggest shareholder with a 34% stake.

 

In response to Hornby's statement, Anton issued his own statement later on Monday morning saying that his proposal has been backed by New Pistoia Income Ltd, which is Hornby's second largest shareholder with a 20% stake.

 

Citing Hornby's nominated adviser, Anton said Hornby has lost GBP31 million since Canham joined the board, and that "it is time for a change" as shareholders have lost "enormous value".

 

Since Canham became chairman on the first day of February 2013, Hornby shares have fallen 59% to close last Friday at 33.0 pence. Shares in Hornby were trading up 0.8% at 33.25p on Monday.

 

Anton went on to say that Hornby's current strategy is "ineffective, will continue to destroy value and is not aligned with creating wealth for all shareholders".

 

Furthermore, Anton said the "control currently exerted over the company" by Phoenix Asset Management is not in accordance with principles of good corporate governance given that Canham is also Phoenix's chairman.

 

"The last five years under Canham have been disastrous for Hornby's shareholders. I believe it is time for new leadership as, in my experience, positive change nearly always requires fresh perspective. I am confident that Hornby's fortunes can be turned around and value can be created for shareholders if changes are made," Anton said.

 

"Now is the time to act otherwise shareholders face further losses. I ask shareholders to vote in favour of the proposed board change," he added. 

 

Hornby - which makes brands such as Scalextric, Airfix and Corgi - has suffered a difficult few years plagued by falling sales and profit.

 

However, moves to restructure the business under its recently-launched turnaround plan led it to release a trading statement last Friday showing signs of recovery in the business.

 

In the trading statement, Hornby said that while it will still be loss-making in the year ended March 31, revenue will be slightly ahead of expectations as it benefits from completion of the first stage of its turnaround programme.

 

By Karolina Kaminska; karolinakaminska@alliancenews.com; @KarolinaAllNews

[andyram]

Attracting the children are important because they are the next generation of adults who will come back to the hobby. Whatever electric train set they do for children must be 00 and compatible with the main range. They do not want to produce another white elephant like the HO Toy Story disaster from a few years ago.

The 0-4-0 GWR tank engine which is the mainstay of the train set range could easily become a Peppa Pig or Postman Pat themed locomotive.

[QuoitsPlayer]

Another quote here widely reported in the press: "But Mr Anton told the Press Association: "Hornby is old-fashioned, and that's part of the problem, but there is evidence of a shift from screens to physical toys, such as Scalextric. "Some of those toys have great potential if the company gets the product right, and it hasn't."

 

That's in this morning's Daily Mail along with an online report that Hornby are going to call a meeting within 21 days to decide if Canham or Anton are the chairman.

[34theletterbetweenB&D]

Ominously, so far as attracting younger modellers is concerned, I'm reminded of Meccano.

 And seen from another perspective, all hobby interests and childhood games have their rise and fall. Where now toy soldiers, Inaction man, Vegetable plot dolls and much else that crazed parents could once be seen beseiging toy stores for? The currently overwhelmingly dominant electronics software based games makers are going to be blown away forever by Froobaloola in 2021.

[Clearwater]

On meccano, my uncle brought my son a tub of it. Branded meccano but plastic not metal. He's had fun assembling it. Lots of other similar toys on the market

 

David

[The Stationmaster]

It is illuminating to have a  look at Mr Anton's other involvement on the 'net and study his history and involvement with various companies - quite a number of which have since been dissolved.

 

I might be doing him an injustice but following on from Ron Ron's comments above I get the impression that Mr Anton is unlikely to deliver any sort of miracle pill and is more likely to dig the company into the mire as his 'toy making' strategy goes the way of other recent 'toy making' strategies at Hornby and may result in selling off various bits as it takes his fancy (I believe there is a name for such activities).

 

Overall Hornby face one major problem - they are a company with a large shareholding with a poor P/E ratio offering limited returns in a business area where having that sort of structure is probably an outdated mode of ownership and far too top heavy for their core, and most profitable, business areas.  Effectively they need to be either much smaller and simpler or have larger and more diverse capital backing and assets to be this sort of overall size of company in this business area.  I somehow suspect that Mr Anton hardly views the future of Victoria Carpets as being part of a wider corporate package with a high investment, high product price, part of that package involved in a specialised market area (which his utterings suggest that he fails to understand from either an historical or present market viewpoint).

 

I have a nasty feeling that if he gets his way we can kiss Hornby goodbye as far as our interests, and those of various other hobbyists, are concerned. 

[Coryton]

. I would suggest doing away with the niche models like the Fathers Day wagons that,not me, do not fit with either market.

 

They've been doing these for a few years now, haven't they?

 

I imagine they know by now whether they sell well enough or not.

 

(Whether they are appreciated by the recipients is a different question entirely).