07 Aug | Hornby – Stopping All Stations to the Olympics
Without setting any records of its own, Hornby’s (of die-cast model railway fame) share price may well have turned the corner, partly on the back of the success of the London Olympics.
Hornby’s official Olympic range features in excess of 160 items priced from £2 through to £100 and includes figurines, key-rings, die-cast London buses and black cabs. With Team GB dominating the track cycling, Hornby’s Scalextric Velodrome Cycling set may find it’s way into a few Christmas stockings come December.
If demand for their 1:5 scale Olympic Torch is anything to go by, then the appetite for Olympic memorabilia is as high as a pole vaulter’s pole – at least at last check, it’s all sold out.
As a result of its Olympic association, Hornby’s distribution network has also expanded with retailers such as Sports Direct and Clinton Cards stocking lines of their merchandise for the first time.
At the time of writing Hornby’s share price is trading at 86.3 pence (admittedly, on average to low volume) having added 15 pence (17%) in the past couple of months.
Here’s why we took a closer look at Hornby back in June of this year. At the time the share price had just bounced a little off three year lows of 70 pence.
On the eve of the Olympics – and on the back of Hornby releasing an Interim Management Statement (timing is everything, right) – Numis reiterated it’s buy rating on the shares with a target price of 100 pence.
Speaking at their Annual General Meeting, Hornby Chairman, Neil Johnson had this (amongst lots of other non-Olympic related things) to say:
The London 2012 Games are about to commence and we have extensive plans in place to maximise our sales of London 2012 products over the coming weeks. The majority of our London 2012 products, such as our Great British Classics die cast vehicles, will continue to have commercial appeal after the Games.
So, Hornby: Faster, Higher, Stronger? Time will tell. Thanks again for dropping by.