News and events

What's happening in the world of diecast collecting.

30th July 2021, Hornby plc announced that it has acquired the remaining 51% of LCD Enterprises Limited ("LCD") that it did not already hold, from Lyndon Davies, CEO of the company, and his wife Catherine Davies, who together owned this remaining stake. LCD holds majority interests in the Oxford Diecast Group, which supplies diecast model vehicles and railway products to the collector, gift and hobby markets in the UK, Hong Kong and North America.

On 8th December 2017, Hornby plc completed the acquisition of 49 per cent of the issued ordinary share capital of LCD. On 20th February 2020, Hornby plc entered into the Amendment and Restatement Agreement, a conditional agreement pursuant to which the LCD SPA was amended and restated such that the end of the Lock-In Period relating to certain rights of the Company and Lyndon Davies and Catherine Davies, was extended to 8th December 2023, being the sixth anniversary of completion of the LCD SPA.

Hornby plc has now agreed to acquire the remaining 51% per cent. of the issued share capital of LCD, for a total cash consideration of £1.3 million. For the financial year ended 31st December 2020, LCD reported a net profit after tax of approximately £0.2 million. At the time of completion of the Acquisition, LCD is expected to have total assets of circa £5.1 million, and liabilities of circa £2.4 million resulting in (unaudited) net assets of £2.7 million. Pursuant to the Acquisition, the Group will acquire LCD's inventories and other assets, as well as liabilities.

Hornby believes that the Oxford Diecast Group's portfolio of brands and industry knowledge are complimentary to its existing brand portfolio and that opportunities exist for the two businesses to work collaboratively together to grow both businesses. The Group is well placed to leverage the value of the LCD inventory and to further develop the brand's intellectual property, which includes a range of scale models that complement the Hornby product ranges.

In a move that had been widely expected over recent years, it will be very interesting to see how the ranges develop and work together in the coming years. The factories out in China that produce products for both companies will, no doubt, work very efficiently together. We look forward to seeing further developments. ■