Stockopedia comments Paul Scott - Hornby (LON:HRN)23 Feb 2024 15:20
Hornby (LON:HRN) - up 35% to 28.5p at 14:18 (£48m) - Hornby welcomes Fraser (FRAS) as supportive strategic shareholder, FRAS ups its stake to 8.9%. This could get interesting! FRAS owns GAME, which sells Hornby products (model railways, and other heritage brands).
Note that Phoenix owns 72% of HRN, so is in the driving seat. I imagine Phoenix are probably delighted that key retailer/brand owner Frasers is taking an interest in HRN. Maybe this opens up an opportunity for Phoenix to sell down some of its shares in future? Trouble is, after years of attempting a turnaround, HRN is still heavily loss-making and has way too much debt. So on fundamentals it looks hopeless, but it looks as if traders might be having some fun on the Frasers news, in a very illiquid share with little free float. Could it be the next Games Workshop? Probably not, but FRAS involvement could be a catalyst for something more interesting to happen, who knows?