Mel_H

Stock market announcement a few moments ago: 11th September 2017 Directorate change Hornby Plc, the international models and collectibles group, today announces that following the increase in Phoenix UK Fund's stake in the business the Group's strategy is under review. As a result, it has been mutually agreed that Steve Cooke will step down as CEO at a date to be agreed. Steve will remain as CEO for a transitional period and an announcement will be made concerning a new CEO in due course. Steve joined the business as CFO in June 2015 and stepped up to the CEO role in April 2016. David Adams, Interim Chairman, commented. "The position of Phoenix as Hornby's majority shareholder represents a new chapter in the development of the Group and the Board is working closely with Phoenix to set the direction of the business going forward. The Board would like to thank Steve Cooke for his huge contribution to the Group, in particular his leadership of the first stage of the turnaround that was announced to the market last year. We are delighted that Steve has agreed to remain in the post and effect an orderly transition to the appointment of the new CEO."

Very well put, and much better than my ramble...!

This is true of all businesses. Shareholders (in it for the long term) provide capital for investment, and the return on their investment is (usually) dividends. It works because dividend payments, in theory, are higher than if you'd invested the money elsewhere (e.g. bonds or banks). The rub is that the risks (e.g. you might not get a big enough dividend, or at worse lose all your cash) are higher. It's risk v rewards. With a private company - like Kader - its main routes for investment are either cash from retained profits, bank borrowing (can be expensive and requires some sort of guarantee), or tapping the shareholders. However, what happens in terms of financial and other strategies can easily remain behind the scenes and little is published in public. Moving from a private to a public company (PLC) means you can in theory quickly raise more cash, and more cheaply, by giving investors a return (dividend) and a stake in the company. If the company's net worth grows quickly as a result of that investment, you can then sell your share in the company to someone else for a high price than you paid and 'take profits' - which is how publicly-traded shares on the Stock Exchange often work. The snag is that the shareholders in a company (through their votes) also have a say in how the company is run. Within Kader (private), the shareholders are 'controlled' as only those invited to invest in the company can 'join the club'. In a PLC (public) then anyone can buy shares, irrespective of whether the founders, directors or other shareholders like them (or agree with them). It's just two different means to achieve the same ends: i.e. raising cash and rewarding those who put money in. The bald numbers are that Hornby's market capitalisation is currently £27.5m (roughly what it's worth if you wanted to buy it outright). It hasn't made a pre-tax profit since year-ending 31/3/12 (7% margin), and hasn't paid a dividend since then either. Although it's share price held okay (based on the PLC's statements), it crashed from 81p to 31p 'overnight' in February 2016 when traders took flight after Hornby posted a poorly-received trading update. Comparing the two firm's most-recent figures: Hornby: Year-ending 31/3/16 - turnover £56m, pre-tax loss £14m (-23% margin), net assets £32m. Remember that this includes non-railway stuff, like Scalextrics Bachmann Europe: Year-ending 21/12/15 - turnover £15m, pre-tax profit £0.25m (1.6% margin), net assets £10.6m, net worth £10m. No dividends were paid to Kader and the retained profit was £209,000. All these numbers were very similar in the previous two years - in other words it's flatlined and there's no real growth. On the other hand debt is low, however cash appears to be relatively tight for investment, which might partly explain why numerous promised new models have yet to arrive, other than joint ventures (where presumably a third party is putting money in towards tooling etc; even if that's merely a guarantee in terms of a large order rather than up-front payment). As for Dapol: It's so small that it does not have to file full accounts (and chooses not to), so its turnover, profit and other figures are kept secret. Publicly-available figures show its net worth is £1.5m. Its sole owner is Craig Boyle. Overall, I'm as keen as anyone to see that they all thrive (and survive) so that we can continue to enjoy our hobby. Currently all are producing good new models that the market seems to like, while being realistic about the headwinds from China and currency issues that is putting pressure on retail prices. More power to their collective elbows!

Yes, prelims in June would be expected

It's all over, bar the shouting, and for the time being there won't be much of that. A financial news report from Alliance is below, but in brief the shareholders that were demanding change have now accepted that there's no point going ahead with next week's General Meeting, as they will be out voted, so they've told Hornby they have withdrawn their demands for 'agitator shareholder' Mr Anton to replace Chairman Roger Canham. The pressure will now be on Hornby to deliver on its promises to the city... NEWS ITEM FROM ALLIANCE NEWS Hornby PLC on Wednesday (10 May 2017) said it will indefinitely adjourn the general meeting requisitioned by two shareholders, after the shareholders withdrew their requisition on Monday. Last month, Hornby received a letter from Ian Alexander Anton requisitioning a general meeting to propose to shareholders that Anton replace Hornby's Chairman Roger Canham. Canham joined Hornby in 2012 and was made chairman in 2013. The 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. Anton also said his proposal had been backed by New Pistoia Income Ltd, which is Hornby's second largest shareholder with a 20% stake. Following the requisition, Hornby announced it would hold the general meeting on May 16, but recommended to shareholders that they vote against Anton's resolutions. Hornby said at the time it had received irrevocable undertakings to vote against the resolutions from Phoenix Asset Management Partners - which Canham is also chairman of - Ruffer LLP and Downing LLP in respect of their overall 54% holding. Phoenix alone holds a 34% stake. On Tuesday, Hornby released a statement saying that ROY Nominees and HSBC Global - which had both signed Anton's initial letter - have sent another letter "withdrawing with immediate effect the requirement for the company to proceed with convening the requisitioned general meeting". On Wednesday, Hornby said it will open the general meeting as planned on May 16 and will proceed to seek shareholder approval for the meeting to be indefinitely adjourned without proceeding to any of the formal business. Shares in Hornby were trading up 2.7% at 32.74 pence on Wednesday.

The 'circular' has now been published; below is an extract of the main content (only the admin, top-and-tail, etc bits are omitted). Dear Shareholder, Notice of Requisitioned General Meeting 1 INTRODUCTION On 7 April 2017 your Board received a Requisition Notice requiring the Directors to convene a general meeting of the Company to propose two ordinary resolutions to remove Roger Canham from office as a director of the Company with immediate effect and to appoint Ian Alexander Anton as a director of the Company with immediate effect. The purpose of this document is to explain why your Board unanimously recommends that you VOTE AGAINST the Requisitioned Resolutions. 2 BACKGROUND In the Company’s circular of 22 June 2016, the Board detailed the difficulties the Hornby business had faced during 2015, which had resulted in trading losses and, in early 2016, a breach of the covenants under the Company’s banking facility. The Company’s CEO at that time resigned, and Steve Cooke, who had been the Company’s Finance Director, was appointed Chief Executive of the Company. The Board undertook a complete review of the Company’s operations, including its brands, product lines, distribution channels and territories. A new strategy was formulated, approved by the Company’s lender and supported by certain of the Company’s largest Shareholders. In July 2016, the Company successfully completed a placing and open offer, raising approximately £8.0 million through the issue of new Ordinary Shares in the Company and renegotiated its banking facility. The Board is delivering its stated strategy as planned and acted over the last year to restructure areas of the business that required fundamental change, in order for the Company to deliver sustainable profit and cash generation as soon as possible. The strategy, which the Company is delivering in line with the plan outlined at the equity raise last July, is focused on the following: a) Reduction of business scale and cost: The Company has focused on the most profitable and cash generative areas of the business and made significant cost savings. As at November 2016, changes to the UK business had realised annualised headcount cost savings of £0.8 million, with changes to the European business realising £1.2 million. As guided last June, the effect of this was expected to be a reduction of revenue for FY17 vs FY16 of approximately 20-25%. b) Maintain key UK brands: The Company has retained all its key UK brands, including its highly recognisable and profitable brands (Hornby, Scalextric, Airfix, Humbrol and Corgi) which are core to the Company’s strategy. As previously reported, this is supported by around £1.5 million of capital investment this financial year (2015: £4.6 million) into new product tooling (£1.2 million) and enhancing the Company’s operational IT systems (£0.3 million). Further, the management team have spent a great deal of time and effort on improving service to core Hornby customers, especially its independent and national distribution channels. 
 c) Focused product range: The Company has reduced its product line by approximately 40 per cent. to approximately 1,400 product lines, focusing on higher gross margin products and reducing complexity and activity levels which has allowed the Group to cut significant costs from operations as outlined above. The Company has also reviewed the product range under each brand and is working with its customers to improve how each range is presented in-store to drive improved sales for both Hornby and its customers. 
 d) Refine channel strategy and exit concessions: The Company has exited most of its concessions as it increases its focus on profitable channels to market. 
 e) Changes to European operating model leveraging UK central services: The Company is refocusing its European business on its most profitable European model rail brands. In addition, the Company has centralised its operations and product development in the UK, expanding the customer and sales support capability by recruiting a number of multi-lingual, skilled individuals in order to provide pan-European service to the Company’s customers. The changes have also resulted in a reduction of £1.2 million in the cost base of the Group’s European business, as described above. 
 f) Stock reduction: As previously announced, at 31 December 2016 stocks were £11.2 million (2015: £15.5 million). 
 g) Property: On 13 June 2016, the Company sold its Spanish property for €1.3 million and on 28 February 2017 it sold its Margate property for £2.25 million. This has helped to strengthen the Group’s balance sheet. 
 3 TRADING UPDATE The Company announced a trading update on 7 April 2017, in which it outlined the solid progress being made on the turnaround plan. The first stage of Hornby’s turnaround is now complete and has progressed in-line with the Board’s plan. The Group has restructured its UK and European operations, resulting in structural improvements to the cost base, and has re-engaged with its core independent retailer base as part of a re-positioned sales channel strategy. The product range has been rationalised and re-focused which has allowed Hornby to reduce capital expenditure and improve working capital. The business is focused strongly on improving cash flow and at 31 March 2017 net cash on the balance sheet was £1.1 million (31 March 2016; net debt £7.2 million) which was ahead of management’s expectations. This has resulted from sound underlying trading combined with a carefully managed programme of stock reduction and the successful sale of the Group’s Margate site. 4 CURRENT TRADING & OUTLOOK As the Group has previously stated, the year ended 31 March 2017 has been one of transition and, as a result, Hornby was loss making during this period in line with the Board’s expectations. Revenue performance for the full year was slightly ahead of plan, with the fourth quarter showing an improving trend. With the first phase of the turnaround plan now largely complete, Hornby is confident in the business’ underlying trading momentum as it embarks on the next phase of its turnaround plan. Having placed the Group on a solid financial footing, Hornby’s focus is now on realising the full potential of its iconic brands. 5 REASONS FOR THE BOARD’S RECOMMENDATION TO VOTE AGAINST THE REQUISITIONED RESOLUTIONS The Company is trading in line with the Board’s financial expectations and is implementing the turnaround plan supported by its Shareholders at the time of its equity raise in July 2016. The Board is surprised by the timing of the Requisition Notice and its intent, as it considers the Company to be showing increasing signs of improved performance; the Board remains fully supportive of the current strategy. Your Board unanimously recommends that you VOTE AGAINST the Requisitioned Resolutions for the following reasons: The strategy currently being pursued by the Board is well thought-out and is working The strategy currently being pursued by the Board was the result of a complete review of the Company’s operations, including its brands, product lines, distribution channels and territories, supported by the use of external consultants. It gained the support of the Company’s major Shareholders and lending bank in July 2016, and has been successfully implemented since. The Company has reported trading and operational milestones since July 2016 in line with the Board’s expectations and the Board remains confident that this strategy is the correct course of action to return Hornby to profitability and generate long term value for all Shareholders. The current structure and composition of the Hornby Board is consistent with good corporate governance The Board considers good corporate governance important to the Company and to safeguarding Shareholders’ interests. For that reason, the Company operates with a majority of Directors independent of its largest Shareholder, and has nominated a Senior Independent Non-Executive Director. Roger Canham is an experienced director, who brings a great deal of experience and expertise to the Board. In accordance with, and to maintain, good corporate governance principles, the Company and Phoenix entered into a relationship agreement dated 22 June 2016, which ensures the Company carries on its business independently of Phoenix. Further, the Board’s two independent non-executive directors are highly skilled and experienced individuals, recruited through a rigorous process, offering due challenge to the strategy and decision making process of the Board. The Board believes in the value of sound corporate governance and in maintaining an effective and diverse board of directors. The Board has the support of a majority of its Shareholders In considering the Requisitioned Resolutions, the Board has sought the views of its major Shareholders. Subsequently, the Board has received irrevocable undertakings to VOTE AGAINST the Requisitioned Resolutions from Phoenix, Ruffer LLP (acting as agent on behalf of its clients) and Downing LLP in respect of, in aggregate, Ordinary Shares representing 45,637,248 Ordinary Shares and 53.96 per cent. of the issued Ordinary Share capital of the Company (as at 24 April 2017 being the latest practicable date prior to the date of publication of this document). The Requisitioned Resolutions therefore will not be passed at the Requisitioned General Meeting. This position has been communicated to the Requisitionists ahead of publication of this document. 6 THE REQUISITIONED GENERAL MEETING Set out at the end of this document is a notice convening the Requisitioned General Meeting of the Company to be held at the offices of the Company’s solicitors, Berwin Leighton Paisner LLP at Adelaide House, London Bridge, London EC4R 9HA on 16 May 2017 at 11.00 a.m., at which the Requisitioned Resolutions will be proposed. The Requisitioned Resolutions are each ordinary resolutions as follows: (a) Requisitioned Resolution 1 – That Roger Timothy Canham be removed from office as a director of the Company with immediate effect; and (b) Requisitioned Resolution 2 – That Ian Alexander Anton be appointed as a director of the Company with immediate effect. The Directors unanimously consider that the Requisitioned Resolutions, as put forward by the Requisitionists, are NOT in the best interests of the Company or its Shareholders as a whole. Accordingly, the Directors unanimously recommend that Shareholders VOTE AGAINST both of the Requisitioned Resolutions to be proposed at the Requisitioned General Meeting as they and certain Shareholders intend to do in respect of their beneficial holdings of Ordinary Shares amounting to, in aggregate 45,796,748 Ordinary Shares or 54.14 per cent. of the issued Ordinary Shares in the capital of the Company (as at 24 April 2017 being the latest practicable date prior to the date of publication of this document).

Stock Exchange announcement this morning: PUBLICATION OF CIRCULAR Released 07:00 25-Apr-2017 Hornby PLC 25 April 2017 Hornby Plc ("Hornby" or "the Company") 25 April 2017 Publication of Circular On 7 April 2017 the Board of Hornby received a notice pursuant to sections 168 and 303 of the Companies Act 2006 (the "Requisition Notice") requiring the Directors to convene a general meeting of the Company (the "Requisitioned General Meeting") to propose two ordinary resolutions to remove Roger Canham from office as a director of the Company with immediate effect and to appoint Ian Alexander Anton as a director of the Company with immediate effect (together the "Requisitioned Resolutions"). Hornby is today publishing a circular including a letter from David Adams, the Company's Senior Independent Non-Executive Director, along with the notice of the Requisitioned General Meeting to be held at the offices of the Company's solicitors, Berwin Leighton Paisner LLP at Adelaide House, London Bridge, London EC4R 9HA on 16 May 2017 at 11.00 a.m., at which the Requisitioned Resolutions will be proposed.The Directors unanimously consider that the Requisitioned Resolutions, as put forward by the requisitionists, are not in the best interests of the Company or its shareholders as a whole. Accordingly, the Directors unanimously recommend that its shareholders vote against both of the Requisitioned Resolutions to be proposed at the Requisitioned General Meeting for the following reasons: · the strategy currently being pursued by the Board is well thought-out and is working; · the current structure and composition of the Board is consistent with good corporate governance; and · the Board has the support of a majority of its shareholders. The Directors intend to vote against each of the Requisitioned Resolutions in respect of their own legal and beneficial holdings of Ordinary Shares amounting in aggregate to approximately 159,500 Ordinary Shares or 0.19 per cent. of the issued ordinary share capital of the Company (as at 24 April 2017, being the latest practicable date prior to the date of publication of this announcement). Following receipt by the Company of the Requisition Notice, the Board sought the views of its major shareholders. Subsequently, the Board has received irrevocable undertakings to vote against each of the Requisitioned Resolutions from Phoenix Asset Management Partners Limited, Ruffer LLP (acting as agent on behalf of its clients) and Downing LLP in respect of, in aggregate, ordinary shares representing 45,637,248 ordinary shares and 53.96 per cent. of the issued ordinary share capital of the Company (as at 24 April 2017, being the latest practicable date prior to the date of publication of this announcement). A full copy of the circular containing the notice of the Requisitioned Meeting will be available later today at www.Hornby.plc.uk/aim-rule-26/

Presumably there must have been an expected large volume of water, to do this rather than a culvert, or maybe it was cheap as it's a 'standard' kit of parts for the time? An interesting find; thanks for sharing!

I understand that the Pullman brand is still owned by BR Residuary, along with other ex-BR brands, such as named trains, e.g. The Master Cutler. Sometimes a payment is made (depending on the use), but I believe it's relatively modest.

I agree - spot on. When younger, my son wanted to buy what he could see running on the network - all very colourful too. Detail was not key, but good running and reliable couplings were. When I'm at Model Rail shows, the conversations I overhear seem to suggest that little has changed in this regard. The biggest snag is that back in the day of Lima, 47s were plentiful in real life. Now they are not, and it's units that are. For this, I don't have an answer...

I too am very happy with my EU07, and the Rivarossi double decker coaches I bought to go with (yes, I know it's not that prototypical, but it's my layout etc...)

Google happily supplies the whole article - it's in a 'Thomas' style; clearly, they'd been to the pub... And PA photos still seems to have only one picture of a 'toy train' (The old Cl 29, with an hand) that gets rolled out everytime there's a press article, as it does in this case. But That's not a surprise. On Hornby's website, there's just an email address/phone number for Hornby's PR firm. Most half-decent firms have 'ready to use' hi-res pictures available to download from the corporate part of their website. These days, journalists and picture desks in a hurry want to choose and use photos in an instant. Anyway, whinge over, here's the FT story (16 April), in full, below: Investor builds up head of steam over Hornby Thomas the Tank Engine maker needs to avoid trainspotters’ siding, says critic Patience is a virtue on the Island of Sodor, toy train land and home to Thomas the Tank Engine. There, “the really useful crew” whistle in harmony, buffer, share, peep and puff along together. Pushy interlopers almost always get their comeuppance. Life is not so wholesome elsewhere in toy train land. Last week, the chairman of Hornby, which makes Thomas and his friends as well as Scalextric and Corgi cars, was relegated to the really useless crew by one critic. Alexander Anton, non-executive director of rugmaker Victoria, who also manages legacy property portfolios, proposes to shunt Roger Canham, chairman for the past five years, off the board. Mr Anton is coupled to New Pistoia Income, a mysterious fund that owns about 20 per cent of Hornby, making it the Kent model maker’s second-largest investor after Phoenix Asset Management. New Pistoia and Mr Anton have, it seems, become impatient with Mr Canham over Hornby’s wheezing progress towards recovery. Mr Anton says the company has lost more than £30m of shareholders’ money in five years and is on track to lose more. That may be a bit hard on Mr Canham, an “iron man” triathlete. Hornby’s wheels were wobbling and its axles aching when he joined the board in 2012. The legacy of overstocking memorabilia for the 2012 Olympics and multiple problems with supplies in China have chugged on. Still, the group came close to breaching banking covenants last year and lost its second chief executive in four years. The shares at 33p are a third of what they were in mid-2015. However, on April 7, Hornby puffed out a statement claiming that it might soon crest the hill. The group still made a loss in the year to March. Nonetheless, after finding that half its product range earned more than 90 per cent of profits, it has stopped producing quite so many thousands of toys and is focusing on the most profitable lines. That sounds sensible. Better late than never. The old Margate factory site has also been sold and Hornby has stopped undercutting the retailers who specialise in selling its model planes, trains and automobiles to diehard die-cast buffs. The debt that threatened to derail Hornby a year or so ago is being whittled away. Instead of £7m net debt last year, Hornby has more than £1m net cash, whistled Hornby’s newish chief executive, Steve Cooke. The shares accelerated 10 per cent. Not good enough, wheeshes sleek and silvery Mr Anton. The strategy is wrong. The company needs to broaden its customer base and draw in a younger crowd, not narrow it to ageing miniature-train spotters, he told journalists last week. Mr Anton has expressed concerns about Hornby’s governance, too. He thinks Phoenix, which is chaired by Mr Canham and owns 34 per cent of Hornby, exerts too much control. This “is not in accordance with principles of good corporate governance and therefore is not in the best interests of the wider shareholder base”, says Mr Anton. This is the man who in 2012 was part of an ill-tempered board spat at Victoria, then the Anton family business, which resulted in him being made a non-executive director, with Geoffrey Wilding, a Kiwi private equity veteran, becoming executive chairman. Mr Anton, still a close associate of Mr Wilding, was on the board that two years later sanctioned a complex incentive plan involving derivatives that allowed the New Zealander to take close to half the carpet company as a reward for beating performance hurdles. Mr Wilding has since reduced his holding to about 33 per cent — about the same size as Phoenix Asset Management’s stake in Hornby. The taciturn Mr Canham’s record is not gilt-edged. He is not much given to chuffing cheerfully and it is by no means full steam ahead for Hornby. If this were Sodor, Sir Topham Hatt, the fat controller, would urge him to learn his lessons but would keep him in the yard. Mr Canham’s tenure at Hornby is less secure. His chairmanship of Phoenix does not assure his position. A year ago, Mr Canham was shunted as chairman of CPP, the insurer, even though Phoenix was the York group’s second-biggest investor. Nonetheless, shareholders in Hornby should take their time and think carefully about whether the model engine maker’s chairman should be displaced now and, if so, who should replace him.

And, in addition to the prices, some of Bachmann's stuff isn't that great (although it appears criticism of Barwell is not welcome by many, as Hornby bashing seems to be easier). The latest Stanier Mogul is good, but not up to the best (e.g. massively overscale front guard irons; it has a 5A Crewe North shed plate which would date it from May 58 to June 61. It has counter-sunk rivets which was the case, according to the owners, until 1963-5. It most certainly is not in 'as preserved' condition which Bachmann claims - the current shed plate is 8F (Wigan) It has works plates in a different position to 42969 and this would seem to be correct based on photos), while the less said about the 150 motor positioning the better (although they are going to rectify it), nor the massively-overscale jumper socket on the cl 40, plus the delay in actually producing announced items (158 anyone?). Mind you, the test shots of the Coal Tank do look nice. I'll get my coat....

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

Yes, it would. The last published details (Annual Accounts in June 2016) don't reveal this, naturally, but they do show the following position - that is that 70% of the shares are held by four organisations. Phoenix Asset Management Partners is only (very minor) partially owned by Roger Canham (his stake is 2.8%); the Channon family is the majority owner: [extract from report below] SUBSTANTIAL SHAREHOLDINGS The Company has been notified that at close of business on 17 June 2016 the following parties were interested in 3% or more of the Company’s ordinary share capital. Shareholder No. of shares Percentage held Phoenix Asset Management Partners Ltd 16.257m 29.58% New Pistoia Income Ltd 12.129m 22.07% Ruffer LLP 7.022m 12.78% Downing LLP 3.156m 5.74%

Certainly when I went into a large model shop in Sydney, expecting to see loads of 'local interest' items I was very surprised to discover that more than half of the extensive stock (it would have been good by UK standards) was UK - Hornby and Bachmann. I guess there's a large number of ex-pats who are buyers.

Two announcements in quick succession to the Stock Market this morning (Monday 10 April 2017): The first, from Hornby, at 0700hrs: Hornby plc ("Hornby" or "the Company") 10 April 2017 Requisition of General Meeting Hornby announces that on 7 April 2017 it received a letter from Ian Alexander Anton enclosing a notice pursuant to sections 168 and 303 of the Companies Act 2006 (the "Act") requisitioning a general meeting of the Company's shareholders (the "Requisition"). The Requisition is signed on behalf of ROY Nominees Limited and HSBC Global Custody Nominee (UK) Limited (Account 883031), together representing the beneficial owners of c.20 per cent. of the paid-up capital of the Company carrying voting rights at general meetings of the Company. The Requisition requires the Company to call a general meeting for the purposes of considering ordinary resolutions to remove Roger Timothy Canham from office as a director of the Company with immediate effect and to appoint Ian Alexander Anton as a director of the Company with immediate effect. The Board of Directors currently intends, in accordance with section 304 of the Act, to call such a general meeting within 21 days of the date of receipt of the Requisition and to hold such general meeting on a date not more than 28 days after the date of the notice convening such general meeting. Shareholders are advised to take no action at this time. Further announcements will be made in due course. The second, from the protagonists, at 1100hrs: 10 April 2017 Statement re: Announcement by Hornby plc This statement is in response to the announcement made by Hornby plc (the "Company") dated 10 April 2017. As reported, and in the best interest of fellow shareholders, Alexander Anton has called for a General Meeting of the Company. He is joined in this action by New Pistoia Income Limited ("New Pistoia"), the second biggest shareholder with a 20% holding in the Company. The proposal requests shareholders to back Mr Anton to replace the current Chairman, Roger Canham. After five years under the current Chairman, during which the Company has lost £31 million (according to the Company's Nomad), and shareholders have lost enormous value, it is time for a change. Mr Anton and New Pistoia believe that the current strategy is ineffective, will continue to destroy value and is not aligned with creating wealth for all shareholders. This strong conviction has come after considerable research into the Company's current situation and management practices. Furthermore, Mr Anton and New Pistoia believe that the control currently exerted over the Company by the Company's largest shareholder, Phoenix Asset Management ("Phoenix") with 34% of total shares in the Company, where Mr Canham is also Chairman, is not in accordance with principles of good corporate governance and therefore is not in best interests of the wider shareholder base. Mr Anton has a strong track record in addressing challenging corporate issues and forcing through positive change at underperforming businesses. Following discussions over the course of a number of months with Phoenix and the Company that have ultimately proved fruitless, Mr Anton and New Pistoia have found no alternative but to request that a General Meeting is called to raise and discuss his proposal with all shareholders. Alexander Anton commented further: "The last five years under Mr 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." "Now is the time to act otherwise shareholders face further losses. I ask shareholders to vote in favour of the proposed Board change."

I suspect that the currency fluctuations have already been priced in; plus they will have long-term currency deals like all major companies that manufacture in countries not trading in their selling currency (if that makes sense). If Brexit or currency changes are happening/expected to happen, that are likely to be material to the business, they would have said so ('cos they are required to).

Good morning. The following trading statement was made to the Stock Market when it opened this morning (0700hrs, 7 April 2017). Please note that none of the other UK manufacturers are listed on the UK Stock Market, which is why Hornby alone, is the only one to make such announcements. Given the time this thread has been going, and how the position has changed, I'll suggest to the moderator that its name might be changed. ----------------------- Hornby plc ("Hornby" or "the Group") 7 April 2017 SOLID PROGRESS ON TURNAROUND PLAN CREATING SOUND PLATFORM FOR FUTURE GROWTH Pre-close statement Hornby Plc, the international hobby products group, provides an update to shareholders on progress made in its turnaround plan and on Group trading for the period from 6 February 2017 to the end of the financial year, 31 March 2017. First stage of turnaround successfully completed The first stage of Hornby's turnaround is now completed and has progressed in-line with the Board's plan. The Group has restructured its UK and European operations, resulting in structural improvements to the cost base, and has re-engaged with its core independent retailer base as part of a re-positioned sales channel strategy. The product range has been rationalised and re-focused which has allowed Hornby to reduce capital expenditure and improve working capital. The business is focused strongly on improving cash flow and at 31 March 2017 net cash on the balance sheet was £1.1m (31 March 2016 net debt £7.2m) which was ahead of management's expectations. This has resulted from sound underlying trading combined with a carefully managed programme of stock reduction and the successful sale of the Group's Margate site. Current trading As the Group has previously stated, the year ended 31 March 2017 has been one of transition and, as a result, Hornby was loss making during this period in line with the Board's expectations. Revenue performance for the full year was slightly ahead of our plan, with the fourth quarter showing an improving trend. Outlook With the first phase of the turnaround plan now largely complete, Hornby is confident in the business' underlying trading momentum as it embarks on the next phase of its turnaround plan. Having placed the Group on a solid financial footing, Hornby's focus is now on realising the full potential of its iconic brands. Commenting on the trading performance, Steve Cooke, CEO of Hornby, said: "I am pleased to report that the first stage of our turnaround plan has been successful and this provides a strong base from which Hornby can build. It has been a challenging time for all of Hornby's employees and I would like to thank them for their dedication, commitment and hard work over the past year. Improving our customer focus has been a key part of the plan and I am particularly pleased that we have now begun to restore our leading position with our core hobby retail customers. Coupled with the considerable improvement in our financial position, I am confident that we have set the Group on the right course to generate value for all our stakeholders.

Somehow, we need to pass the time while waiting for news, and have a little fun...

Is it (OO version) fitted with a coreless or 'normal' motor?

The wait is over! While overall it looks nice, the chunky front footsteps are a shame as times have moved on and more delicate, better looking ones would fit with level of detail of most contemporary models. Also the huge slotted screw head onto the connecting rod is a disappointment when things have otherwise moved on. Anyway, a question. In the reviews BRM states the locos are fitted with coreless motors and HM reckons it has a five pole motor. Bachmann's web site doesn't offer any clues. Some people say that coreless motors don't like H&M units others say that they have no problem or that control is limited. Does anyone know what type motor is fiited?

Hope so!

Hornby issued a trading update at 0700 this morning. It is copied as pasted below as delivered. Note that the bold text is as supplied to the Stock Market from Hornby. Please note that this covers all Hornby's activities, not just railways: 7 February 2017 TURNAROUND PLAN ON TRACK AND ROBUST CURRENT TRADING Hornby Plc, the international hobby products group, provides an update to shareholders on progress made in its turnaround plan and trading for the period from 25 November 2016 to 5 February 2017. Turnaround plan on track The Group's turnaround plan is progressing as expected. The structural changes to the UK business are complete. We are at an advanced stage in transferring key European operations to the UK and we expect this to be completed by the end of the financial year. The rationalisation of the product range and associated reduction in capital expenditure were delivered in line with our plans. New catalogues for the 2017 product range have been launched and were received positively by our customers and consumers. The closure of the concession channel is proceeding as planned and we have continued to steadily reduce group stock levels while taking care not to disrupt core sales through existing channels. At 31 December 2016 stocks were £11.2 million (2015: £15.5 million) and net debt was £2.7 million (2015: £6.4 million). Current trading robust As previously announced, revenue is expected to decline by around 20-25% this financial year due to the rationalisation of the business. Group revenue reduced by 25% year on year during the Christmas period and UK revenue was down by 21%, in line with expectations. Underlying Christmas trading was healthy and we have enjoyed a solid January sales period. All sales channels have performed in line with or better than our expectations. In particular, sales to Independent Retailers were robust with positive growth of 4% year on year during the period as we continued to strengthen partnerships with these important customers. Margate site sale On 6 February 2017 the Group exchanged contracts for the sale of its site at Margate for a consideration of £2.25 million, which will complete on 28 February 2017. The expected profit on sale of approximately £0.9m will be treated as an exceptional item. The Group will leaseback part of the site for the Hornby Visitors Centre and retail outlet. Outlook As previously announced the current financial year is a period of transition as we reshape and streamline the business. This will result in full year revenue reducing significantly year on year and the Group will be loss-making during this transition year. However, we remain confident of meeting the Board's expectations. Steve Cooke, Chief Executive of Hornby commented, "We are in the midst of a transformational year and our turnaround plan is proceeding as expected. The restructuring of our UK operations is complete and we are well advanced with our initiatives in Europe. Our improved financial position is evidence of the success of the first stage of the turnaround. Hornby is well positioned to continue its transition to profitability and higher cash generation."

I recall from somewhere (!) that some kind soul has produced an interior detailing kit (stove, handbrake wheel/stand, desk etc). Is my memory bad (probably...), if not can anyone advise. A forum trawl has failed to turn up anything, so apologies if it's mentioned elsewhere. Otherwise, thanks in advance!