Hornby PLC

Hornby Plc

With a history dating back to 1901 when Hornby was founded, the company’s first model railways, launched in 1920, quickly became iconic. Despite Hornby’s rich heritage and strong brand recognition, the market has undervalued its potential, partly due to the business not executing as well as it could have on key opportunities. As a listed company on AIM (ticker: HRN), this underperformance created an attractive investment opportunity.

Hornby is a portfolio of heritage toy and collectible brands, each catering to different aspects of the hobbyist market. Hornby specialises in model railways, while Airfix focuses on plastic model kits of aircraft, ships, and military vehicles. Corgi produces die-cast models of cars and buses. Scalextric is known for its slot car racing sets, and Pocher offers large-scale car model kits. Humbrol provides paints and tools for model builders complementing the entire range. The portfolio continues to grow with the acquisitions of Warlord Games, a leader in tabletop wargaming, and the Corgi Model Club, a subscription service for Corgi’s range.

To maintain the relevance of each brand, Hornby’s long-term strategy involves a team of passionate brand managing directors, to ensure focused leadership that lives and breathes their respective brands. Additionally, the company has expanded its direct-to-consumer website offerings, enhancing customer access to its diverse range of products.

Hornby’s products naturally align with Maslow’s Hierarchy of Needs, particularly in addressing higher-level psychological desires such as esteem and self-actualisation. Customers find fulfilment through hobbies that provide a sense of accomplishment, recognition, and creativity. By offering products that engage individuals in their passions, Hornby allows customers to experience personal growth and satisfaction through their collections and mastery of skills.

The brands continue to embrace both tradition and modern technology, providing collectors with immersive experiences through a blend of digital and physical offerings. With a diverse portfolio, Hornby remains committed to delivering quality products and experiences that resonate with enthusiasts all around the world.

Hornby’s value creation opportunity lies in its ability to leverage its established heritage brands while modernising its offerings through digital transformation and targeted market expansion. By improving its direct-to-consumer platforms, investing in new technologies, expanding its global customer base and addressable markets, Hornby is strategically placed to drive future growth. 

Invested since 2017

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