Hornby: Mike Ashley-backed toymaker announces plans to go private
Hornby, the international models and collectibles group advised by Mike Ashley, has announced plans to go private as it looks to sidestep regulatory hurdles and cut costs.
The firm told markets Thursday it intends to strike its shares off London’s AIM stock exchange, citing regulatory burdens, limited liquidity and the high cost of maintaining a public quotation.
Shares in Hornby have fallen 50 per cent over the last 12 months.
It follows major structural changes at the company, which has been working with Frasers’ founder and stakeholder Mike Ashley on a turnaround plan over the last year and a half.
That turnaround has included the sale of subsidiary LCD Enterprises, job cuts and the relocation of its logistics operations to the Midlands.
“The board is well aware of the place Hornby has in the hearts of its loyal shareholder base, and the company’s announcement today is not taken lightly,” Hornby said in a statement to markets.
“The directors are confident that operating as a private entity will provide Hornby with the necessary agility for swift decision-making and efficient execution of strategy whilst not depriving shareholders of material benefit.”
Hornby’s board must get the green light from shareholders before making any final decision. A vote will be held at a general meeting on Thursday morning, with approval contingent on 75 per cent support.
Should the resolution be passed, Hornby said it had agreed to two share facilities to support investors seeking to trade out of their shareholding following any cancellation.
Thursday’s announcement is the latest blow to London’s struggling AIM market, which has seen a surge in delistings in recent years.
In 2024, AIM shrunk to its smallest size in 23 years as 92 firms delisted.
Hornby’s largest shareholder, the investment giant Phoenix Asset Management Partners, increased its holdings the firm from 71.6 per cent to 83.3 per cent in December.
Russ Mould, investment director at AJ Bell, said its decision to delist was “not a damning criticism of the UK stock market.
“When two shareholders – Phoenix Asset Management and Frasers – own 91 per cent of the company, it doesn’t make sense to be a listed entity.
“Companies admit their shares for public trading to obtain a diverse shareholder base and access capital markets. In Hornby’s case, its shareholder base has become incredibly concentrated.
Hornby’s largest shareholder, Phoenix Asset Management Partners, increased its holdings the firm from 71.6 per cent to 83.3 per cent in December.