HORNBY STEAMS AHEAD AFTER WARNER BROS TIE-UP

HORNBY shares surged 24pc after it signed a deal with Warner Bros.

The toy maker will make a range of train and car sets in collaboration with Warner Bros franchises such as Harry Potter and DC Super Heroes. DC Super Heroes cover comic book characters including Batman, Wonder Woman, Superman and the Green Lantern.

The toys will be developed under the group’s Hornby Railways, Scalextric and Corgi brands. The deal is a major boost for 117-year-old Hornby, which has suffered a 60pc slump in its share price since the beginning of 2016. Earlier this year it admitted it was appealing to its main lender to breach the conditions of its loan agreement and to raise debt in a bid to return to profitability. Hornby’s losses widened to £10.1m for the year to March 31, compared with £9.5m a year earlier, while sales fell by almost 25pc to £35.7m.

Last month 31-year Hornby veteran John Stansfield became chairman after 12 years as finance chief.

Lyndon Davies stepped down from the interim chairman position to become chief executive. Shares ended up 24pc, or 7.6p, at 39.1p.