Last checked at 17 Oct 2017 07:02
Hornby PLC
("Hornby" or the "Group")
17th October 2017
Update on Strategic Review
Following an initial review of the business by Lyndon Davies, the new CEO, the Board has determined that to maximise the value of its brands over the long term, the Group will no longer offer for sale large quantities of stock at a discount.*
In the trading update issued at the AGM on 6 September 2017, the Board highlighted that the performance in the year to date had been below expectations. This, coupled with the new approach to discounting stock, means it is now clear that the shortfall is unlikely to be recouped in the current year. It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year.
Lyndon Davies is continuing his review of the business' strategy and will provide a more complete update with the Group's half-year results.
Directorate Change
Separately, David Adams, Interim Chairman, has indicated to the Board of his intention to step down from the Board of Hornby plc, to take up another appointment. A search for an independent Non-Executive Chairman is progressing and a further announcement will be made in due course. David will continue to Chair the Board in the meantime and will step down after a short handover to a new Chairman.
David was appointed to the Board as Senior Independent Non-Executive Director on 9 January 2014 and was appointed Interim Chairman on 22 June 2017.
Martin George, Senior Independent Director, commented.
"On behalf of the Board I would like to thank David for his skill and expertise in guiding the business through a period of significant change and for his invaluable contribution to Hornby over the last four years."
*(Agreements made before this announcement will be honoured)
Enquiries:
Hornby plc 01843 233500
Lyndon Davies, CEO
David Mulligan, CFO
Liberum 020 3100 2222
Neil Elliot
Neil Patel
Capital Access Group 020 3763 3400
Scott Fulton
Note:
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact David Mulligan, CFO of the Company (responsible for arranging release of this announcement) on 01843 233 500.