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Hornby: Phoenix takeover bid ‘significantly undervalues business’

Hornby has advised investors to ‘take no action for the time being’ over the impending mandatory takeover bid by Phoenix Asset Management.

The firm has stated that the takeover offer “significantly undervalues” the hobby company, famed for its model railways and more recently, Scalextric.

The offer of 32.375p per share values Hornby at £27.4m.

The toymaker has also appointed David Adams as its interim chairman, replacing Roger Canham who resigned from Hornby’s board on Wednesday. Canham is also the non-executive chairman of Phoenix Asset Management.

On Wednesday, Hornby reported falling revenues and deepening annual losses, despite successfully completing phase one of its turnaround plans. The company has streamlined its efforts and cut back the number of products it sells.

In the year to March 31, revenues fell to £47.7m from £55.8m, while underlying losses widened to £6.3m from a £5.7m deficit last year.

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