Hornby Business Funding

[Pandora]

£12million, but I cannot find anything for the interest rate and term of the loan, the interest rate being a clue to the perceived risk of Hornby,  and  what is the loan secured against,  inventory? The Hornby property portfolio?

[SamThomas]

9 hours ago, newbryford said:

Maybe they'll use the funds to bring out some new whizz-bang model that we all want.

Or even some tat in a fictitious livery.....

 

I see they've invested wisely already...........

 

https://uk.Hornby.com/products/hm-queen-elizabeth-ii-platinum-jubilee-hst-train-pack-r30215

 

 

Personally, fictitious or not I think it looks quite nice especially when you consider the design of the HST is half a century old.

[1andrew1]

8 hours ago, Pandora said:

£12million, but I cannot find anything for the interest rate and term of the loan, the interest rate being a clue to the perceived risk of Hornby,  and  what is the loan secured against,  inventory? The Hornby property portfolio?

Is this not something like invoice factoring? ie Hornby gets paid for its invoices to shops by Secure Trust Bank who then take on responsibility for getting those invoices paid and chasing up payments? Given the seasonal nature of the business, this might be a more cost-effective way of handling its cash flow rather than having lots of people in credit control who are not needed for half of the year? But in terms of RNS announcements, not very significant.

[woodenhead]

19 minutes ago, 1andrew1 said:

Is this not something like invoice factoring? ie Hornby gets paid for its invoices to shops by Secure Trust Bank who then take on responsibility for getting those invoices paid and chasing up payments? Given the seasonal nature of the business, this might be a more cost-effective way of handling its cash flow rather than having lots of people in credit control who are not needed for half of the year? But in terms of RNS announcements, not very significant.

Possibly, or just some other funding vehicle that companies use to make life easier and de-risk - it's not like there aren't lots of other companies constantly reviewing their funding, banking facilities, cash flow, dealing with debtors and creditors in the most efficient manner they can.  Given all the streamlining and outsourcing Hornby has done, it would make perfect sense to have someone manage your credit control for you as well rather than have your own people doing it.

[No Decorum]

On 31/05/2022 at 10:12, SamThomas said:

Personally, fictitious or not I think it looks quite nice especially when you consider the design of the HST is half a century old.

It does look nice – particularly the A4 styling is very neat. However, the coaches don’t harmonise very well with the power cars and it looks more like a tribute to the Silver Jubilee train than Her Maj’s jubilee.

[Legend]

On 31/05/2022 at 11:49, woodenhead said:

Possibly, or just some other funding vehicle that companies use to make life easier and de-risk - it's not like there aren't lots of other companies constantly reviewing their funding, banking facilities, cash flow, dealing with debtors and creditors in the most efficient manner they can.  Given all the streamlining and outsourcing Hornby has done, it would make perfect sense to have someone manage your credit control for you as well rather than have your own people doing it.

 

Nothing comes for free though . Factoring out or using debt collection agencies costs a lot of money

[1andrew1]

Just confirmed in the annual accounts as a change of provider.

Quote

32. EVENTS AFTER THE END OF THE REPORTING PERIOD

On the 21 April 2022 we transferred our Asset Based Lending Facility from PNC Credit Limited to Secure Trust Bank PLC.

https://polaris.brighterir.com/public/Hornby/news/rns/story/w13dg3r

 

Edited June 16, 2022 by 1andrew1

[The Stationmaster]

I wonder why they didn't report the change via RNS?  Presumably the view was that it was simply a change of funding provider with no change to the total amount of the facility although if I read the PNC facility correctly iot included a dated repayment so there would be a change at some stage in the accounts?