TRADING UPDATE AND MANAGEMENT SUCCESSION PLAN

RNS Number : 0580B

Hornby PLC

28 March 2013

 



Hornby Plc

Trading update and Management Succession Plan

Hornby, the international models and collectibles group, is today updating shareholders on trading ahead of its Preliminary Results for the year ended 31 March 2013, which are expected to be announced on 7 June 2013.

Business Performance

As the Group approaches the end of its financial year, trading has been in line with its expectations. The broadening of the supplier base is continuing successfully, which is expected to lead to an improvement in delivery reliability.The retail environment in the UK and Europe remains challenging, but we have responded by introducing a range of new products, that have been received enthusiastically at the recent international Toy Fairs. In particular, the response to the launch of the Quick Build concept across both Airfix and Scalextric brands and the re-launch of the Pocher model car range has been very encouraging.

Management Succession

The Group has embarked upon the first stage of a management succession plan.  Frank Martin has advised the Board that he intends to retire from his role as Chief Executive. To assist in a smooth transition, the Board is pleased that Mr Martin has agreed to stay with the Group as Deputy Chairman and will retire on or before 30 June 2014.  At the same time, the Chairman, Roger Canham, will move to an Executive role and will manage the process to appoint a new Chief Executive, which will begin immediately.  Mr Martin has been Chief Executive since 2001 and has led the transformation from a narrow business focused solely upon the UK, to a much broader group, with a wider portfolio of brands that are sold across a range of international markets.

Internal Re-structuring

Following a review of the wider internal management structure, there will also be a re-structuring of the senior team below the Board level.  This will create a simpler, more streamlined reporting structure that more closely reflects the current shape of the business and will take effect immediately.  A one-off restructuring charge of around £0.5m will be recorded this year, which is expected to be largely offset by cost savings in the year to 31 March 2014.

Outlook

The Board remains confident in the Group's strategy. Despite the continuing backdrop of a patchy consumer environment, we are confident that the measures that we have taken will strengthen our sales potential in the future.  We have a broad portfolio of strong brands and we are optimistic that with a more reliable supply chain, we will see a return to growth of both sales and profitability.

Roger Canham, Chairman said,

" I am pleased that the business is in a more stable shape going forward.  Our supply chain is improving and our brands remain popular.  I am satisfied that the steps we have taken will lead to an improved financial performance in the future. 

" Management succession is an important priority for Hornby.  We have started the process to identify and select a new Chief Executive who will lead the next stage of Hornby's development.  I am delighted that Frank is staying with the Group during this transition, so that we will continue to benefit from his knowledge and enthusiasm."

Frank Martin, Chief Executive commented,

" Hornby has faced significant global challenges over the past few years.  However, I believe that we have laid the foundations to improve the performance of the Group and deliver value to our shareholders as we continue to drive our outstanding portfolio of brands. "

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Date: 28^th March 2013

For further information contact:

Hornby Plc	Broker Profile
Roger Canham, Chairman	Simon Courtenay
Nick Stone,Group Finance Director	Abigail Genis
01843-233500	020-7448-3244
Web: www.hornby.com

 

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