Hornby chief derailed by fund house

THE chief executive of Hornby is to step down after investment fund Phoenix Asset Management seized control of the model toy maker and began an overhaul of its strategy.

The Scalextric and Airfix maker said that Steve Cooke, who has only been in the role since April last year, will leave.

The departure was ‘mutually agreed’, Hornby said, though Cooke will remain in place for a transitional period.

Interim chairman David Adams said: ‘The position of Phoenix as Hornby’s majority shareholder represents a new chapter in the development of the group and the board is working closely with Phoenix to set the direction of the business going forward.’

Shares were down nearly 4pc in mid-morning trading though ended the day up 0.9pc, or 0.25p, at 28.75p.

Earlier this year Phoenix took full control of Hornby, and said at the time it intends to develop an understanding of the group and its longer-term strategy as it looks to deliver earnings growth following the completion of a turnaround strategy.

Today, Phoenix confirmed it is reviewing Hornby’s strategy.

Hornby’s turnaround has seen it reduce product ranges and cut back on investment as part of plans to shore up the balance sheet.

But only last week the group, best known for its model railways, said that trading has fallen short of expectations amid increased competition.