Frasers steams in with stake in Hornby trains
TRACKSUIT tycoon Mike Ashley has a new train set to play with – after buying into model maker Hornby.
The billionaire’s Frasers Group has acquired a near 9% holding in the hobby firm, which also makes Scalextric and Corgi.
Hornby, whose roots date back to 1901 in Liverpool, has been a hit with generations of children and adults alike, including celebrity fans Sir Rod Stewart and TV presenter James May.
But it has also struggled for years in the face of rising costs, manufacturing issues and competition.
The Margate-based firm expects to return to profit in its next financial year..
Sports Direct owner Frasers has a history of taking over struggling retailers such as gaming chain Game and Evans Cycles. But it has also built stakes in others on the cheap, including Currys. Chris Wootton, Frasers’ finance boss, was giving little away yesterday.
He said: “Frasers Group has a vision to build the planet’s most admired and compelling brand ecosystem. Hornby’s portfolio of unique heritage brands are already part of Game’s product offer and we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution.”
Olly Raeburn, Hornby chief executive, said: “We look forward to exploring commercial opportunities in working together to unlock the full potential of Hornby’s much-loved brands.” Hornby’s share price rocketed after Frasers’ investment was revealed.
Russ Mould, of City firm AJ Bell, said: “Don’t expect Frasers to launch a takeover bid. It’s more likely to seek strategic conversations about helping Hornby to improve its distribution and logistics while realising it might be able to make a few quid by investing in its shares.”