- Loss-making Oxford Diecast owner LCD to be sold for around £1.4m
Hornby has agreed the sale of a loss-making business as part of strategic efforts to return the model train maker to profitability.
The group told shareholders on Tuesday it would sell Oxford Diecast owner LCD for around £1.4million to EKD Enterprises, a business owned by the family of chair Lyndon Davies who is set to step down from Hornby’s board upon completion.
Hornby said LCD, which has a book value of around £3million on the group’s balance sheet, is ‘no longer aligned with the core activities’ of the firm.
A miniature version of the Jaguar Car featured in Morse, made by Oxford Diecast.
Hornby has been reviewing its non-core operations in efforts to return to profitability.
The group posted a £187,005 loss on revenues of around £2.5million for the year to 31 March, widening from a £113,470 loss for the prior 12 months.
Oxford Diecast made a loss before tax of around £200,000 over the period.
Its sale, according to Hornby, helps streamline the business, reduce inventory and enables it to focus ‘exclusively’ on Corgi in the diecast subsector.
Hornby shares were up 8.3 per cent to 19.5p in early trading. They have added 20 per cent over the last 12 months but lost almost 40 per cent over the last five years.
Non-executive chair Neil Sachdev said: ‘Hornby and its family of brands remains world renowned, and rationalising our portfolio in this way presents a more coherent offering to our customers.
‘Through consistently adapting to change we will ensure that we are best placed to continue to support our existing customers whilst we create a new generation of hobbyists.’
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