Mike Ashley helps Hornby clean house after strategic review
Hornby, the international models and collectables group advised by billionaire Frasers Group founder Mike Ashley, has announced the sell-off of a loss-making part of its business and the departure of its former chairman.
The Kent-based listed company, in which Frasers owns a stake, has announced the LCD Enterprises is to be sold to EKD Enterprises, a company owned by former Hornby chairman Lyndon Davies and his family for around £1.38m.
As a result of the deal, the Oxford Diecast brand will no longer be part of the Hornby portfolio.
Oxford Diecast made a pre-tax loss of around £200,000 in the year to 31 March 2024.
In a statement, Hornby added that it “no longer aligned with the core activities of the group”.
Also as part of the deal, Davies is to step down from the Hornby board and his non-executive director role when the deal completes.
Hornby ‘consistently adapts to change’
Hornby’s non-executive chairman Neil Sachdev said: “On behalf the board, I would like to thank Lyndon for his commitment to, and support of, Hornby in various roles over the last seven years.
“He has been a passionate member of the board, and we wish him well with Oxford Diecast in the future.
“Hornby and its family of brands remains world renowned, and rationalising our portfolio in this way presents a more coherent offering to our customers.
“Through consistently adapting to change we will ensure that we are best placed to continue to support our existing customers whilst we create a new generation of hobbyists.”
Sales and profits on the right track
The deal comes after Hornby revealed in September that its sales and gross profit increased by 10 per cent in the period from 1 April to 31 August, 2024, compared to the same time in 2023.
However, the company did say that the increase was “slightly behind internal forecasts due to timing issues driven by shipping delays”.
Mike Ashley took up a consultancy role in March after his Frasers Group significantly upped its stake in the Kent-headquartered listed company in February.
In March, Hornby made its first acquisition since Frasers Group upped its stake. In the same month, Frasers Group further increased its holdings.
Hornby can trace its roots back to 1901 in Liverpool when founder Frank Hornby received a patent for his Meccano construction toy.