Hornby sells miniature car maker for £1.4m

Hornby has agreed to sell 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 LCD, owner of Oxford Diecast, for around £1.4m to EKD Enterprises, a company owned by the family of chairman Lyndon Davies, who will step down from the Hornby board upon completion.

Hornby said LCD, which has a book value of around £3m on the group’s balance sheet, was “no longer aligned with the core activities” of the company.

Hornby has been reviewing its non-core operations in an effort to return to profitability.

The group posted a loss of £187,005 on revenue of around £2.5m for the year to March 31, widening a loss of £113,470 in the previous 12 months.

Oxford Diecast made a pre-tax loss of around £200,000 during the period.

Its sale, according to Hornby, helps streamline the business, reduce inventory and allows it to focus ‘exclusively’ on Corgi in the diecast subsector.

Horny actions They rose 8.3 percent to 19.5 pence in early trading. They have added 20 percent in the last 12 months, but have lost almost 40 percent in the last five years.

Non-executive chairman Neil Sachdev said: ‘Hornby and its family of brands continue to be globally recognised, and streamlining our portfolio in this way presents a more coherent offering to our customers.

“Through constant adaptation to change, we will ensure we are in the best position to continue supporting our existing customers while creating a new generation of fans.”