BachelorBoy Posted June 22, 2023 Share Posted June 22, 2023 (edited) Just published https://polaris.brighterir.com/public/Hornby/news/rns/story/xel63jr Profit in 2022 of £1.5m turned into loss of £5.9m in 2023. Edited June 25, 2023 by BachelorBoy added numbers and screenshot 2 1 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Good news on TT 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Exceeding Expectations? It's much easier if you first depress expectations by dodgy packaging and late deliveries 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 8 minutes ago, BachelorBoy said: Good news on TT So if you look at the revenue increase listed elsewhere, it looks as though sales for the rest of Hornby were about the same (although some segments may have gone up and others gone to leave the overal figure constant) , and all of the increase in revenue (~£1.5m) came from TT £55.1m minus £53.7m = £1.4m 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Is this a hint that there will be Hornby shops? 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Cheaper stuff to encourage people to take up modelling as a hobby? 2 Link to post Share on other sites More sharing options...
RMweb Premium spamcan61 Posted June 22, 2023 RMweb Premium Share Posted June 22, 2023 1 minute ago, BachelorBoy said: Is this a hint that there will be Hornby shops? Looks like it. hmmmm that failed last time they tried it IIRC, in Swindon. Seems to me they're believing their own hype and think they have Apple's brand power. 2 2 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Don't mention The Titfield Thunderbolt fiasco. 1 3 Link to post Share on other sites More sharing options...
woodenhead Posted June 22, 2023 Share Posted June 22, 2023 The big points I see - they have massively increased debt - no doubt to pay for TT120, HM7000 and Digital. They feel digital still has a lot more to offer as they control the price and profitability. They want a new direct retail experience - which does sound like their own shops or certainly if a franchise or similar they want Hornby products front and centre to drive income. Where does that leave your bricks and mortar hobby shop? 1 Link to post Share on other sites More sharing options...
RMweb Gold The Stationmaster Posted June 22, 2023 RMweb Gold Share Posted June 22, 2023 I think I'll read the Report rather than selected bits out of it although there are rumours in the retail tarrade taht Hornby have been talking to at least one retailer about stocking TT120. Son me of teh other excerpts asre simply marketing speak although they indicate the company is noting price resistance and 'capsule range' seems to be the newspeak term for 'design clever' as presented in teh limited context posted above. The Report will contain some far more important stuff about the state of the company - I hope. 1 Link to post Share on other sites More sharing options...
RMweb Gold The Stationmaster Posted June 22, 2023 RMweb Gold Share Posted June 22, 2023 4 minutes ago, woodenhead said: The big points I see - they have massively increased debt - no doubt to pay for TT120, HM7000 and Digital. They feel digital still has a lot more to offer as they control the price and profitability. They want a new direct retail experience - which does sound like their own shops or certainly if a franchise or similar they want Hornby products front and centre to drive income. Where does that leave your bricks and mortar hobby shop? I suspect it might mean a franchise or some sort of 'fdifferent' deal with existing retailers - if teh latter are prepared to buy it. But at the moment the excerpt above, in isolation, is just a bot of strategic hinting and generalaisation for teh shareholders. Don;t forget when there is bad news - losses, plus increased borrowings etc - the Report has to mention positive ideas to show that teh bad news is being tackled. But does some of it amount to a hint that the direct slaes route isn't delivering what was expected of it and the cost of it has now been realised? Time to read the Repoirt I think and look deeper into the numbers. 1 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 Hornby doesn't breakdown profits/losses/sales for individual brands, but the geographical breakdown of profits is interesting and gives some clues. Perhaps Hornby should sell all its brands except Rivarossi? :-) Link to post Share on other sites More sharing options...
woodenhead Posted June 22, 2023 Share Posted June 22, 2023 1 minute ago, The Stationmaster said: I suspect it might mean a franchise or some sort of 'fdifferent' deal with existing retailers - if teh latter are prepared to buy it. But at the moment the excerpt above, in isolation, is just a bot of strategic hinting and generalaisation for teh shareholders. Don;t forget when there is bad news - losses, plus increased borrowings etc - the Report has to mention positive ideas to show that teh bad news is being tackled. But does some of it amount to a hint that the direct slaes route isn't delivering what was expected of it and the cost of it has now been realised? Time to read the Repoirt I think and look deeper into the numbers. Within the report there is mention of additional headcount costs to deal with fulfilment, I am guessing numbers of packers etc for the digital side sending out stock to purchasers. 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 7 minutes ago, The Stationmaster said: I think I'll read the Report rather than selected bits out of it That's why I put the link in the first post. Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 1 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 2 hours ago, spamcan61 said: Looks like it. hmmmm that failed last time they tried it IIRC, in Swindon. Seems to me they're believing their own hype and think they have Apple's brand power. My speculation: Hornby is thinking about copying Tamiya's shops in East Asia. Thousands of square feet of retail space with Tamiya classic kits, hands-on RC demonstrations, Mini 4WD tracks, etc. Situated in nice shopping areas: not a vape shop in sight. https://www.tamiya-plamodelfactory.co.jp/info-shop-english/ 2 1 Link to post Share on other sites More sharing options...
RMweb Gold JohnR Posted June 22, 2023 RMweb Gold Share Posted June 22, 2023 8 minutes ago, BachelorBoy said: My speculation: Hornby is thinking about copying Tamiya's shops in East Asia. Thousands of square feet of retail space with Tamiya classic kits, hands-on RC demonstrations, Mini 4WD tracks, etc. Situated in nice shopping areas: not a vape shop in sight. That would be expensive in this country. 1 Link to post Share on other sites More sharing options...
Edwardian Posted June 22, 2023 Share Posted June 22, 2023 3 hours ago, BachelorBoy said: Good news on TT Not the re-launched Bassett-Lowke range? Crumbs, I really thought they would be quids in with that 1 4 Link to post Share on other sites More sharing options...
BachelorBoy Posted June 22, 2023 Author Share Posted June 22, 2023 3 minutes ago, JohnR said: That would be expensive in this country. Tamiya's first store is in Shimbashi in Tokyo. Rents there ain't cheap. Amazingly, Tamiya manages to charge men Y500, or about £2.75, for admission to the more interactive part of the shop. (Entrance for women and children under-18 is free) 1 Link to post Share on other sites More sharing options...
Widnes Model Centre Posted June 22, 2023 Share Posted June 22, 2023 I am somewhat confused regarding what their Retailers role will be going forward? They have stocks of £21+million and yet this paragraph: The Tier System remains clearly for the future. They look to expand their own retail operations, starting in Margate. Will that be even less stock for National and Independent Retailers? Maybe they should locate one in Widnes, Cheshire, ideally midway between Hattons and ourselves and then we could all meet in the park for lunch? In fact why not put a concession in the local garden centre, scrap that, there’s already one there. Recent reports of a Market Research company approaching retailers and asking if they would like to see the return of Hornby reps? Most of them appear to be now working for competitors. Will someone from Hornby please let us know what role if any we have in the company’s future plans? 1 1 3 Link to post Share on other sites More sharing options...
RMweb Gold The Stationmaster Posted June 22, 2023 RMweb Gold Share Posted June 22, 2023 3 hours ago, woodenhead said: Within the report there is mention of additional headcount costs to deal with fulfilment, I am guessing numbers of packers etc for the digital side sending out stock to purchasers. No the headcount will be within Hornby = packing is con tracted out to the warehouse (unless they have changed things). it will probably be the additional in-house staff to handle direct sales. and returns etc. Link to post Share on other sites More sharing options...
Edwardian Posted June 22, 2023 Share Posted June 22, 2023 1 minute ago, The Stationmaster said: No the headcount will be within Hornby = packing is con tracted out to the warehouse (unless they have changed things). it will probably be the additional in-house staff to handle direct sales. and returns etc. Yep, cut down on supplying retailers and you have to fund your own customer service function! Busy times ahead! 2 1 Link to post Share on other sites More sharing options...
woodenhead Posted June 22, 2023 Share Posted June 22, 2023 9 minutes ago, The Stationmaster said: No the headcount will be within Hornby = packing is con tracted out to the warehouse (unless they have changed things). it will probably be the additional in-house staff to handle direct sales. and returns etc. Outsourced costs will be reflected within operating costs, they don't come for free, if they didn't specify enough resource then it means more heads and more cost which will be charged back to Hornby unless Hornby had a watertight contract that the outsourcer could not wriggle out of in cost terms. Link to post Share on other sites More sharing options...
RMweb Gold The Stationmaster Posted June 22, 2023 RMweb Gold Share Posted June 22, 2023 21 minutes ago, Widnes Model Centre said: I am somewhat confused regarding what their Retailers role will be going forward? They have stocks of £21+million and yet this paragraph: The Tier System remains clearly for the future. They look to expand their own retail operations, starting in Margate. Will that be even less stock for National and Independent Retailers? Maybe they should locate one in Widnes, Cheshire, ideally midway between Hattons and ourselves and then we could all meet in the park for lunch? In fact why not put a concession in the local garden centre, scrap that, there’s already one there. Recent reports of a Market Research company approaching retailers and asking if they would like to see the return of Hornby reps? Most of them appear to be now working for competitors. Will someone from Hornby please let us know what role if any we have in the company’s future plans? Regrettably as usual - and note I have yet to read the Report so. my views might change - there appears to be a continuing mélange of marketing misunderstanding within Hornby. So it's no wonder that retailers are left confused and concerned. Clearly not the way for anyone to manage a business aimed at the consumer discretionary spend market. This apparent detachment from reality is reflected in the words appended to your post and if they came from the Report (I assume they did???) the confusion gets even worse. Maybe somebody should have told Hornby about the companies which have entered the model tailway sector in recent years. T That appears to be KR (although hardly comparable in most respects), EFE (ok it's an offshoot of an established company but it's a new brand), Sonic through Rails), Accurascale, Rapido, and an icncreasing range from Revolution. Hornby actually have a need to regain market share in competition with them plus from their longer extant competitors. So I wonder where that sentence came from? Then we get a mention of tiering which, from what I've heard, a lot of people within Hornby don't understand although maybe it is only meant to sweep up what doesn't go through direct sales. Which begs the question why does that happen - if the stuff diesn't sell sure;y the market is saying something that oiught to be heard and thought about down by th seaside? If that lot is a statement of the situation of the market somebody needs to start again. And that applies in the geographical area where they have made their biggest loss 3 Link to post Share on other sites More sharing options...
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