Last checked at 10 Apr 2017 11:00
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."
Enquiries
Buchanan Communications 020 7466 5000
Charles Ryland / Victoria Hayns