Hornby sells off Scalextric

[Newportnobby]

For anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

[Roy L S]

For anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

From what I have read only £8.5m is to be paid up front with the rest paid over an undetermined period from "available cashflow". Hornby has a lot of debt and has had to roll over at least some of it that was due to be repaid, so will at least some of this cash generated actually go to pay down debt?

The details of the deal seem fairly complex, and Hornby will from what I have read still have some involvement in the Scalextric brand. I am sure greater minds than mine involved have decided this is best for Hornby, but I can't help but reflect that selling off profitable assets to generate cash doesn't feel all that sustainable if underlying profitability of the Group as a whole is in a more challenging place 

Roy

[middlefour]

For anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

From what I have read only £8.5m is to be paid up front with the rest paid over an undetermined period from "available cashflow". Hornby has a lot of debt and has had to roll over at least some of it that was due to be repaid, so will at least some of this cash generated actually go to pay down debt?

The details of the deal seem fairly complex, and Hornby will from what I have read still have some involvement in the Scalextric brand. I am sure greater minds than mine involved have decided this is best for Hornby, but I can't help but reflect that selling off profitable assets to generate cash doesn't feel all that sustainable if underlying profitability of the Group as a whole is in a more challenging place 

Roy

I agree with Roy, selling off a profitable asset smacks at desperation to me. Setting up the TT range has cost them a lot and talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

[ntpntpntp]

... TT range...  talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Continually selling out of TT:120 the more popular stock doesn't seem like poor sales to me   This sounds like the old line from disgruntled shops who weren't included as stockists when it was all online sales.

[Roy L S]

... TT range...  talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Continually selling out of TT:120 the more popular stock doesn't seem like poor sales to me   This sounds like the old line from disgruntled shops who weren't included as stockists when it was all online sales.

Conversely, TT120 A3s and A4s have been selling at under £100 and some of the coaching stock is discounted by over 40% as are HSTs, certain sets have been similarly discounted, none of that is indicative of demand outstripping supply across the whole range, it is predicated by either sacrificing margin to push sales, supply exceeding demand or possibly a bit of both.

I think the reality is that TT120 is encountering economic "headwinds" just like any other scale.

Roy

[Train Waiting]

There's a Youtube channel called 'Little Wicket Railway' which has a video about the Scalextric sale. And other ones about financial matters regarding our hobby. My impression is the chap's analysis is fairly accurate.

Worth a look for anyone interested in this sort of thing.

All good wishes.

John