Hornby shares tumble over 50%

[MikeDunn]

Well, my company (another way of looking at it : the company I work for  ) did substantially better than that    The joys of large IT, eh ?

It's curious that the company doesn't understand that if you spent a fortune in November and December (up 17%), then sales in January will be down.

I think the phrase used was along the lines of "promotions" rather than sales ... it's not people like us not buying; it's retailers not restocking as fast as Hornby want them to.  Which maps in quite well with the displayed stock in my local model rail store last week-end; there are usually 2-4 good piles of Hornby sets out (one still in delivery boxes, the rest out as retail sales) - I think I counted 8 Hornby sets where there are normally a couple of dozen, and maybe the same again under the model railway they have running (again, normally a couple of dozen).

But if you want to see what is likely the main problem there : read the bios of the directors & ask yourself "that do these guys know about this market ?" ...

[MalcolmInN]

If it falls any more , ,
Tomorrow's news :
DJM mount takeover bid for Hornby.

[Dorsetmike]

My local shop had to "heavily discount" their last blue grey Brighton Belle, it "hung around on the shelf for ages".

[MikeDunn]

Tomorrow's news :
DJM mount takeover bid for Hornby.

LOL

Got £18M in his back pocket, has he 

[MikeDunn]

My local shop had to "heavily discount" their last blue grey Brighton Belle, it "hung around on the shelf for ages".

Mine still has theirs for £200 ...  I think they're resigned to it never selling.

[Mr Sprue]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

[MalcolmInN]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

But actually, the FTSE was up today (0.7%) as Hornby was plunging still  

[MikeDunn]

But actually, the FTSE was up today (0.7%) as Hornby was plunging still  

Indeed.

Hornby's problems are a lot larger than the issues facing China; granted, having the majority of their manufacturing over there doesn't help them, but neither do factors a lot closer to home ... as can be seen by the potentially disasterous reaction the markets had today.

[Mr Sprue]

Since the New Year pretty much all shares have been affected because of whats happening in China, along with mining stocks prices of oil and commodities all have taken a tumble as well.

So Hornby is not alone!

But actually, the FTSE was up today (0.7%) as Hornby was plunging still  

Along with major company's such as the likes of BAT, Sainsbury's , Sky etc.
 

[Mr Sprue]

Hornby's problems are a lot larger than the issues facing China; granted, having the majority of their manufacturing over there doesn't help them, but neither do factors a lot closer to home ... as can be seen by the potentially disasterous reaction the markets had today.

Tell me about it I'm not having a good time myself, should have offloaded IAG back in December. January took a lot of people by surprise!   

[MikeDunn]

January took a lot of people by surprise!   

Yeah ... fancy it suddenly arriving after December !   







(Sorry, couldn't resist !!!  )

[MalcolmInN]

Tell me about it I'm not having a good time myself,

Tell me about it too I was going to  repatriate some stuff from offshore ( yes really !) before the end of March, dont think things are going to recover in time to make it worth my while this year   :'( 

Got £18M in his back pocket, has he 

It's like ladies and their age, a gentleman would never ask a mogul of industry what he is worth
But you missed out the bit where I said " If it falls any more " 

Speaking of Moguls, in N ??

[Mr Sprue]

January took a lot of people by surprise!   

Yeah ... fancy it suddenly arriving after December !   







(Sorry, couldn't resist !!!  )

Ha Ha! Yeah ok.......   to you too!

[Graham Walters]

The falling price of crude is affecting all shares, investors pulling out of crude are looking for elswhere to invest, that's bringing share prices down across the board.

It's a common trend affecting all business, Man Utd's price has fallen by 22.5%, knocking over £320m off the stock value of the club.

Hornby are also sufffering from putting all their eggs in the Chinese basket, workers are demanding higher wages so that they can afford to purchase the goods they are churning out for the West, this is increasing their costs.

Amongst other things Hornby failed to give us a prize for our raffle at last years exhibition, as did Bachmann, the onlu major supplier who did was PECO, who gave us a Hornby loco !

[OwL]

Without getting bogged down into the whys and what-ifs of the Hornby business having financial problems, I just wanted to say that I hope they manage to sort it out.
As a OO gauge traitor 'dabler' I have a couple of hornby locos and I am very impressed with the quality. It would be a shame to lose this. More to the point it would be a greater loss to see UK Hornby employed staff lose their jobs and security and not to mention the distributors, other allied companies and model shops who would also be hit.
Let's hope they recover and anyone involved in Hornby keeps their jobs.
Best of Luck Hornby.