Cash in on classic toys
HORNBY
LYNDON Davis has spent his entire career in the toy and hobby industry, starting out as a 16-year-old apprentice at Mettoy, the Swansea-based toy company. Now 61, Davis is chief executive of Hornby, the company behind Scalextric and Airfix kits, Corgi cars and numerous overseas brands, as well as the famous Hornby train sets.
Despite this enviable portfolio, Hornby had been making losses for five years and its entire future was in jeopardy when Davis joined in 2017. He restructured the company from top to bottom and set about recreating what Hornby had always been known for – making trains, planes, ships and cars beloved by children and adults alike.
Today, models include a No Time To Die Scalextric kit, the Airfix Supermarine Spitfire, and Harry Potter, Coca-Cola and Beatles train sets. Customers can even download a Hornby app so they can control their trains online.
The group has moved into e-commerce too, so customers can buy goods directly as well as via third party retailers. Davis even opened a pop-up Hornby store at St Pancras station in London before the pandemic and more may follow in time. Hornby makes most of its products in Asia so the group was hit by supply chain issues and soaring shipping costs last summer. Davis has since raised prices and ensured that manufacturing is spread over several sites so logistics should be easier this year and beyond. Critically
too, demand is strong here and in overseas markets, which account for around 60 per cent of sales. Hornby is backed by Phoenix Asset Management, which owns 75 per cent of the company and sees itself as a long-term, supportive shareholder.
Traded on: AIM
Contact: hornbyplc.co.uk or 01843 233 500
Ticker: HRN