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Hornby shares soar as boss is derailed | Hornby shares soar as boss is derailed |
(about 2 hours later) | |
Shares in Hornby have soared by a third after the toy maker said Richard Ames would step down as chief executive. | |
His departure comes after shares in the company, whose brands include Scalextric, Airfix and Corgi, crashed last week after a "disappointing" start to the year. | His departure comes after shares in the company, whose brands include Scalextric, Airfix and Corgi, crashed last week after a "disappointing" start to the year. |
Chairman Roger Canham will now lead the group for the "foreseeable future". | Chairman Roger Canham will now lead the group for the "foreseeable future". |
Hornby shares were up 8p to 32.6p in morning trading in London. | |
However, the company is still worth just £17.2m. | |
Supply issues | |
Mr Ames took over in 2014 and during his first 12 months in charge led the company to its first profit in three years. | |
However, results worsened during 2015 amid a costly IT upgrade, management changes and international supply problems for its model railways. | |
The Kent-based company last week issued its second profit warning in the space of six months, forecasting pre-tax losses of between £5.5m and £6m this year. | |
It also revealed a £1m write-off and said it was in talks with its lender, as the scale of losses could result in the firm breaching its banking agreements. |