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Hornby issue trading statement


Andy Y

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It's good progress so well done them. It shows if they can solve the supply issues they increase sales ......duh! Who would have thought it?

 

I think you can say they have steadied the ship. I'm glad to see that supply chain is given prominence because if they solve this they can certainly increase sales. Signs are good I've been getting notifications about K1,Hall, pendolino and 42xx all in last month and they've also delivered the Horsebox and 21t wagons. So looking good. If they keep on like this they will do ok

 

I still have reservations. They've increased their wholesale prices , so shouldn't we have expected more of an increase in sales and it to be translated to higher margin. How many retailers/customers did they lose? My local model shop reckons it's quite a lot . It would be interesting to compare Hornby stockists 2013 and 2015 . I don't like what appears to be their bully boy tactics enforcing lower margins on retailers. I can't see that level of margin in retailers being sustainable

 

I'm also not convinced by their interactions with railway modellers. To me it's still lacking

 

Seems to be a lot of blurb about Corgi,scalextrics and Airfix not so much on model railways. Flying Scotsmen and Pendolino trainsets....hardly new.

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The headline figures could mean anything.  It is easy to inflate year-on-year numbers.  For example, if they set aside something to cover the poor sales of the Olympic merchandise one year it would make the next year's figures look better.

 

It needs an (independent) accountant to analyse the detail behind the headline numbers.

 

It does sound like they're getting their act together though.  (Tesco probably said that too !)

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........... (Indeed considering the hype and silly prices Battle of Britains are selling for in 2015, and the anniversaries coming this year, I think Hornby have missed an opportunity to cash in by making several versions and limited runs..). .................

 

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Yes, this year is the 75th anniversary of the Battle of Britain  -  an  OBVIOUS  choice for a limited edition set of BoB class locos  (especially considering that many people interested in such locos will be of an older generation.

 

Considering the effort put into the A4s last year, I cannot understand Hornby's lack of action this year.

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.

 

Yes, this year is the 75th anniversary of the Battle of Britain  -  an  OBVIOUS  choice for a limited edition set of BoB class locos  (especially considering that many people interested in such locos will be of an older generation.

 

Considering the effort put into the A4s last year, I cannot understand Hornby's lack of action this year.

Six-loco box set: Fighter Pilot, Royal Observer Corps, Lord Dowding, Fighter Command, Spitfire, Hurricane. 

 

Unfortunately, Hornby aren't tooled up for 1946 condition, which is probably why they haven't gone for it.

 

They may also think that Southern fans might be less inclined to throw a grand in their direction than were the "Streak Freaks".  

 

It looks like we can forget any Rebuilds this year as I notice "Okehampton" has been put back yet again and the new date is perilously close to 2016.

 

John

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Six-loco box set: Fighter Pilot, Royal Observer Corps, Lord Dowding, Fighter Command, Spitfire, Hurricane. 

 

Unfortunately, Hornby aren't tooled up for 1946 condition, which is probably why they haven't gone for it.

 

They may also think that Southern fans might be less inclined to throw a grand in their direction than were the "Streak Freaks".  

 

It looks like we can forget any Rebuilds this year as I notice "Okehampton" has been put back yet again and the new date is perilously close to 2016.

 

John

 

The Bulleid WC/BB rebuilds might be rather labour-intensive and Hornby have put it in the 'do that one later' basket? That said, the K1 and other new models show good quality design, construction and assembly is now often (usually?) acheived, so maybe I don't know what I'm talking about!

 

Can't decide if an Arthur SR 771 'Sir Sagramore' is worth it at $132+... it looks superb in Rails' photos.

 

There are so many models that I am sure would fly off the shelves which Hornby don't do (weathered Brit for instance). Looks to me like the CHL and REF factories are capable of everything Sanda Kan used to do, but confidence in purchases is still a bit weak, and prices are a bit painful. I personally buy with a hope that demand is constant and a model will retain maybe 50% of its RRP if kept in good condition, but it's a bit scary when a luxury like a new model is way over £100. 

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The Bulleid WC/BB rebuilds might be rather labour-intensive and Hornby have put it in the 'do that one later' basket? That said, the K1 and other new models show good quality design, construction and assembly is now often (usually?) acheived, so maybe I don't know what I'm talking about!

 

Can't decide if an Arthur SR 771 'Sir Sagramore' is worth it at $132+... it looks superb in Rails' photos.

 

There are so many models that I am sure would fly off the shelves which Hornby don't do (weathered Brit for instance). Looks to me like the CHL and REF factories are capable of everything Sanda Kan used to do, but confidence in purchases is still a bit weak, and prices are a bit painful. I personally buy with a hope that demand is constant and a model will retain maybe 50% of its RRP if kept in good condition, but it's a bit scary when a luxury like a new model is way over £100. 

You may be right about the rebuilds.

 

They very much represent Hornby at the top of their game before things went awry so they may want the new factories to get a few easier subjects under their belts first. 

 

John

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So, he is Mr Stone from Hornby, she is Ms Stone from Discovery. A coincidence of surnames, inaccurate reporting or they are an item?

 

Definitely a coincidence and the names are correct (cf Linked-In). I presume the contact was made via Kent CC, with whom the firm have been working closely ever since Pfizer announced their departure (according to the Thanet Gazette). I suspect (without any evidence whatsoever) that Hornby will have had some kind of sweetener (as is often the case in these situations) to go there, which should also help their bottom line, along with the Margate site sale, which should not take long - development is rapidly swinging in that direction from the shopping centre locus.

 

The Pub Landlord will hail this as a great success in his election campaign for Thanet South (once he finds out where it is). The pubs are exceedingly better in Sandwich, as is almost everything, compared to Margate, although it is quite a walk from the new office! My mother-in-law was in a nursing home not far from there.

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Does this mean that the 2016 range is already planned? And that the production slots will be booked further in advance?

I would have thought the 2016 range would already be planned. What is interesting is they are actually booking the slots to have them produced. To me that means they will actually appear in 2016. Remembering this relates to existing and new items they propose to have available in 2016, so things like West Countries as well as new class 74s. To me this is a further good sign that they realise they have to book blocks of production to ensure an even flow of goods through the year. Perhaps they always knew this but it's only now relations with their new suppliers are settling down to enable this. Presumably they've negotiated slots with some flexibility of what can be made in them, to take account of some models being in more demand than others. Another encouraging sign.

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Dunsignalling, on 10 Feb 2015 - 23:48, said:

Six-loco box set: Fighter Pilot, Royal Observer Corps, Lord Dowding, Fighter Command, Spitfire, Hurricane. 

 

Unfortunately, Hornby aren't tooled up for 1946 condition, which is probably why they haven't gone for it.

 

 

Umm, but only two of those locos were actually built in 1946? So making them all in, say 1948 condition, with wedgie cabs etc would be feasible?

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phil gollin, on 10 Feb 2015 - 23:22, said:

.

 

Yes, this year is the 75th anniversary of the Battle of Britain  -  an  OBVIOUS  choice for a limited edition set of BoB class locos  (especially considering that many people interested in such locos will be of an older generation.

 

 

Oddly enough, I have been keeping an eye on Hornby Chinese airsmoothed Bulleid Pacifics in recent weeks on ebay. There are far more BBs being advertised than WCs, which may mean they are less prized, despite being identical in all but designation and detailed decoration.

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Oddly enough, I have been keeping an eye on Hornby Chinese airsmoothed Bulleid Pacifics in recent weeks on ebay. There are far more BBs being advertised than WCs, which may mean they are less prized, despite being identical in all but designation and detailed decoration.

 

Hasn't Hornby done more airsmoothed BBs than WCs in BR liveries? It certainly seems like that to me, without doing any sort of analysis. Perhaps with the added factor that if you want a later wide cab version, I think you've only the two WCs Weymouth and Blandford Forum as base models, both of which came with the 5,500g cut down tender.

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The Bulleid WC/BB rebuilds might be rather labour-intensive and Hornby have put it in the 'do that one later' basket? That said, the K1 and other new models show good quality design, construction and assembly is now often (usually?) acheived, so maybe I don't know what I'm talking about!

 

Can't decide if an Arthur SR 771 'Sir Sagramore' is worth it at $132+... it looks superb in Rails' photos.

 

There are so many models that I am sure would fly off the shelves which Hornby don't do (weathered Brit for instance). Looks to me like the CHL and REF factories are capable of everything Sanda Kan used to do, but confidence in purchases is still a bit weak, and prices are a bit painful. I personally buy with a hope that demand is constant and a model will retain maybe 50% of its RRP if kept in good condition, but it's a bit scary when a luxury like a new model is way over £100. 

If you can get him for $132-ish (if you mean New Zealand dollars), go for it.  I paid not far short of that in pounds and it IS worth it!

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If you can get him for $132-ish (if you mean New Zealand dollars), go for it.  I paid not far short of that in pounds and it IS worth it!

 

Oops I meant £ ....  and I have bought it.  !   :)

 

edit; here are some Hornby models photographed in the manner in which 771 will end up....  although not quite as dirty, it's not BR after all.

 

post-7929-0-58252500-1423687743_thumb.jpg

 

Incredibly, these models are commonly available s/h (as these were) for under £100 ea. on eBay.

 

And here is a first-go at 771....  frosty Kent morning

 

post-7929-0-25600500-1423687940_thumb.jpg

 

 

 

 

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Can we stick to the relevant bits of the topic please?

 

Indeed, and I am pleased to see a good trend emerging in Hornby's trading status, and that continued production of quality models like those in my pics is actually happening.  Roll on the new King class!

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I would have thought the 2016 range would already be planned.

Do you want to know what's on the list?  :sungum: 

I'd have to kill you after I've shown you.    :jester: 

 

What is interesting is they are actually booking the slots to have them produced.

By all accounts told to us on previous occasions, this is normal practice to secure production slots well ahead.

It's been going on like this for years, so there's nothing new in Hornby booking 2016 production a year to 18/24 months ahead.

 

 

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By all accounts told to us on previous occasions, this is normal practice to secure production slots well ahead.

It's been going on like this for years, so there's nothing new in Hornby booking 2016 production a year to 18/24 months ahead.

 

It does sound like it is earlier than customary for them:

To that end, we have brought forward the process of placing orders for the Group's 2016 range and will complete this process during the first half of 2015.

(My emphasis.)

 

The good news for retailers should be that in planning production slots ahead of time, Hornby should be able to tell them how many of the items in orders placed early in 2016, will be made available to them.

 

This should really address the comments made in their half-yearly report ( for the six months ending September 30, 2014, released November 2014).

During 2013/14, our product delivery to order ratio ran at 59% for the Hornby brand for the year. For 2014/15 this number was 65% reflecting a slight improvement but not a satisfactory performance and we expect better numbers in the second half. Our customers would prefer a more structured and planned approach to deliveries of model rail product and the teams in Europe and Hong Kong are working hard towards delivering this in 2015.

(my emphasis)

 

And could result in material improvement in order fulfillment expectations. It should drive up the product delivery to order ratio. I see it as a good thing.

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Taking the strict meaning of the word -- yes.....

 

The term comes from Italian word nepotismo, which is based on Latin root nepos meaning nephew.

I would start a discussion on the meaning of the Latin 'Nepos' in the context of Nepotism but would probably risk of getting sent off for two yellow cards for starting arguments about politics and religion. 

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There's nothing new in this, don't most people start off with a train set, traditionally a Hornby one? This outlines what Hornby were doing at trade fairs for general retailers, where they say they focused on two key sets, I don't think there is much else to read into this.  

 

Hornby trains sets are pretty strong sellers compared to Baccys one but they are like whats happened to the mars bars, Downsized for the same price, Track Taken out, Crap Transformer which mostly ends up coming back the the seller and the 0-4-0 are crappy runner. I recommened a baccy Digital Starter set for my Nephew and they purchased a Hornby set to create an outer loop, The baccy locos were streets ahead running wise, I worked a a model shop for the past three years I dreaded flogging the Hornby sets.Nothing but issues. Transformers caused most of it...   

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