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14 Sep 2022 07:00
14 September 2022
Hornby Plc ("Hornby" or the "Company")
AGM Trading Statement
and
Historic Related Party Transactions
Hornby Plc, the international models and collectibles group, is today issuing the following trading statement ahead of the Group's Annual General Meeting:
Trading and Outlook
For the period from the 1 April to 31 August 2022, sales and margins have been in line with the previous year.
As is usually the case in our industry; the outcome for the full year is subject to the sales rate over the key Christmas trading period. Our outstanding order book is very strong and higher than a year ago.
We have attempted to mitigate potential supply disruptions this Christmas by bringing forward the shipping dates on key product lines.
We are mindful of the impact the current economic climate may have on demand, but remain encouraged by the historic performance of the hobby industry in prior downturns and our expectations for the full year are unchanged.
Historic Related Party Transactions
The Company announces details of the following related party transactions:
As previously disclosed, on 7 December 2017, Hornby purchased a 49 per cent. stake in LCD Enterprises Limited ("LCD") from Lyndon Davies, then CEO of the Company and since 27 January 2022 also Executive Chairman of the Company. On 30 July 2021 Hornby purchased the remaining 51 per cent. stake in LCD from Mr. Davies. Between 7 December 2017 and 30 July 2021, LCD was therefore a related party of the Company.
Between April 2018 and July 2021, Hornby purchased in aggregate approximately £502,000 of stock, tooling and other items from Oxford Diecast Limited (the "Purchases"), a company which manufactures and supplies diecast model vehicles, which was wholly owned by LCD Enterprises Limited and of which Mr. Davies was a director. These Purchases were therefore related party transactions and were disclosed in the notes to the relevant interim and full-year financial results of the Company.
The Purchases constituted related party transactions pursuant to AIM Rule 13 and the Independent Directors, which exclude Mr. Davies as the beneficial majority owner and a director of Oxford Diecast Limited at the time, now announce that they consider, having consulted with Liberum Capital Limited, the Company's nominated adviser, that the terms of the transactions between Hornby and Oxford Diecast Limited were fair and reasonable insofar as the Company's shareholders are concerned.
-ends-
Enquiries:
Hornby plc
Lyndon Davies, Exec Chairman 01843 233 500
Kirstie Gould, CFO
Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber 020 3100 2222
Edward Thomas
Miquela Bezuidenhoudt
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