Hornby’s share price soars more than 35 per cent as chief executive Richard Ames leaves following profit warnings
Hornby's share price has soared more than 35 per cent today, after revealing chief executive Richard Ames was leaving the business with immediate effect.
Ames stepped down after the toymaker was forced to issue yet another profit warning and admission it could breach its banking covenants last week, prompting the share price to collapse.
Chairman Roger Canham will take over as executive chairman, "and will lead the group for the foreseeable future," Hornby said this morning.
Hornby's share price surged on the news, up more than 10 per cent in early trading. By the late afternoon it had soared 35.7 per cent.
Ames, who has been at the business since April 2014, has been spearheading efforts to bring the business back on track, having overhauled its supply chain, returned some of its manufacturing back to Britain and moved to a new warehouse in Canterbury last year.
The business warned last November that these measures could affect full year profits by up to £2m, and last week upped the impact to between £2.5m and £3m. Hornby also admitted it was in discussions with lenders in an effort to prevent it breaching its covenants in March.
Shares in the Kent-based company behind Thomas the Tank Engine and Pocher car model kits nosedived 53 per cent on the day.