Hornby: Phoenix takeover bid ‘significantly undervalues business’

Hornby has advised investors to ‘take no action for the time being’ over the impending mandatory takeover bid by Phoenix Asset Management.

The firm has stated that the takeover offer “significantly undervalues” the hobby company, famed for its model railways and more recently, Scalextric.

The offer of 32.375p per share values Hornby at £27.4m.

The toymaker has also appointed David Adams as its interim chairman, replacing Roger Canham who resigned from Hornby’s board on Wednesday. Canham is also the non-executive chairman of Phoenix Asset Management.

On Wednesday, Hornby reported falling revenues and deepening annual losses, despite successfully completing phase one of its turnaround plans. The company has streamlined its efforts and cut back the number of products it sells.

In the year to March 31, revenues fell to £47.7m from £55.8m, while underlying losses widened to £6.3m from a £5.7m deficit last year.

About Robert Hutchins

Robert Hutchins is the editor of ToyNews and its sister title, Licensing.biz. He has worked his way from Staff Writer to Editor across the two titles, having spent almost eight years with both and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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