Post by Madhatter on Nov 12, 2006 11:49:03 GMT
Hornby did just as I expected them to and bought Airfix, the news was announced on Friday. They will of course turn it completely around as they have done with every other modelling manufacturer that they have bought. An amazing turn around for a company that was once in that situation themselves once.
Iconic plastic plane firm Airfix has been rescued after Hornby struck a deal with administrators.
Model train maker Hornby agreed to pay £2.6m for Airfix, Humbrol Paints and Young Scientist. It followed the collapse of Airfix owner Humbrol, which went into administration in August.
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The troubles at Humbrol sparked an outpouring of nostalgia for Airfix, which enjoyed its heyday in the 1960s and 1970s as children across the land glued together model Spitfires, Hurricanes and Lancaster bombers.
Humbrol has suffered trading losses for years and 31 staff were made redundant when it went into administration following the collapse of its principal manufacturer in France.
Fans were concerned it would signal the end of the Airfix brand, although administrators said at the time they were looking for a buyer.
Hornby was among those linked with a move for Airfix and today the firm pledged to reinvigorate the firm.
It said it would move the distribution, sales and marketing side of Airfix to its own site in Kent and outsource the manufacturing and assembly arm.
Last year, Airfix, Humbrol Paints and Young Scientist delivered sales of £6.5m.
The deal with administrators Grant Thornton came as Hornby, which also owns Scalextric, posted a fall in sales and profits in the first six months of the financial year to September 30.
The Margate-based company said sales slipped from £18.5m to £17.9m, sending pre-tax profits down from £2.5m to £1.4m.
Hornby chairman Neil Johnson said: "In common with many consumer goods retailers, we began to experience slower retail take-up during the early summer, particularly during the period of the World Cup.
"These conditions continued during the rest of the summer due, we believe, to the unusually warm weather which is not conducive to indoor hobby activities. We have therefore experienced lower sales in the UK during the first half of the current financial year."
But he said the company was in good shape to take advantage of increased trading over Christmas.
"Despite some difficult market conditions in the first half in our main market, we are pleased with the group's overall progress," said Mr Johnson.
"Current indications for Christmas trading in the UK are better than last year, and provided that this trend continues we are expecting a significantly stronger second half in the UK."
Airfix has its origins in a company founded in London in 1939 by Hungarian-born Nicholas Kove which manufactured cheap rubber toys filled with air.
Its first model kit was a 1:72 scale model of the Golden Hind, Sir Francis Drake's ship, produced in 1952.
Due to its massive popularity, Airfix became one of the first toy companies to have its own magazine, in 1960, and it gradually expanded through acquiring a number of other companies, including Meccano.
Its range grew to include vintage and modern cars, motorcycles, trains, ocean liners and spaceships, and children - and parents - spent hours making the models, which were famously difficult to assemble.
As its model kits became less popular, Airfix went into receivership in 1981 and was bought by Palitoy, part of the American General Mills toy group, and production moved to France.
In 1986 it was taken over by Humbrol, but suffered from falling sales as children became hooked on computer games and television.
A recent survey commissioned for First magazine found youngsters spent an average of 25 hours a week in front of either TV or games console screens - rising to 42 hours a week during the school holidays.
www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/10/bcnairfix10.xml
Two of Britain's best-known toy and hobby brands are coming together with news that trains group Hornby has rescued the collapsed Airfix model aircraft kit company.
Hornby is buying Airfix for £2.6m and said it plans to reinvigorate the iconic brand, which collapsed into administration in August. The deal also includes the Humbrol enamel paints and aerosols business.
As well as focusing on its traditional plane, tank and ship kits for model enthusiasts, it plans to introduce new products aimed at the younger market. It also plans to step up marketing of the brand.
Hornby chief executive Frank Martin said Airfix and Humbrol are an "excellent" strategic fit with Hornby, which has a track record of reinvigorating hobby brands.
"We have taken steps to re-align the cost base of the manufacturing and assembly process, to create a solid base from which this business can thrive," he added.
A detailed integration plan has already been put in place, "to ensure that we improve the profit performance rapidly".
Joint administrator Keith Hinds, at Grant Thornton, said he was delighted with the sale: "This transaction provides the best opportunity to preserve and develop what is an iconic brand."
For Hornby, which also owns Scalextric, the deal is part of its strategy to build an international hobby business.
Along with the Airfix deal, Hornby reported profits of £1.4m for the six months to the end of September.
This was sharply down on the £2.5m earned in the first half of the previous year but Mr Martin said the group is "making excellent progress towards our objective of building an international hobby business and reducing our dependency on the UK market".
Mr Martin said trading in the first half suffered from weaker consumer spending and the distractions of the football World Cup, as well as the warm weather, "which is not conducive to indoor hobby activities".
But he is confident on current trading: "Looking ahead to Christmas, we are in good shape. We have an excellent product range and current indications are that we will experience a significantly stronger performance in the second half."
business.guardian.co.uk/story/0,,1944524,00.html?gusrc=ticker-103704
Iconic plastic plane firm Airfix has been rescued after Hornby struck a deal with administrators.
Model train maker Hornby agreed to pay £2.6m for Airfix, Humbrol Paints and Young Scientist. It followed the collapse of Airfix owner Humbrol, which went into administration in August.
advertisement
The troubles at Humbrol sparked an outpouring of nostalgia for Airfix, which enjoyed its heyday in the 1960s and 1970s as children across the land glued together model Spitfires, Hurricanes and Lancaster bombers.
Humbrol has suffered trading losses for years and 31 staff were made redundant when it went into administration following the collapse of its principal manufacturer in France.
Fans were concerned it would signal the end of the Airfix brand, although administrators said at the time they were looking for a buyer.
Hornby was among those linked with a move for Airfix and today the firm pledged to reinvigorate the firm.
It said it would move the distribution, sales and marketing side of Airfix to its own site in Kent and outsource the manufacturing and assembly arm.
Last year, Airfix, Humbrol Paints and Young Scientist delivered sales of £6.5m.
The deal with administrators Grant Thornton came as Hornby, which also owns Scalextric, posted a fall in sales and profits in the first six months of the financial year to September 30.
The Margate-based company said sales slipped from £18.5m to £17.9m, sending pre-tax profits down from £2.5m to £1.4m.
Hornby chairman Neil Johnson said: "In common with many consumer goods retailers, we began to experience slower retail take-up during the early summer, particularly during the period of the World Cup.
"These conditions continued during the rest of the summer due, we believe, to the unusually warm weather which is not conducive to indoor hobby activities. We have therefore experienced lower sales in the UK during the first half of the current financial year."
But he said the company was in good shape to take advantage of increased trading over Christmas.
"Despite some difficult market conditions in the first half in our main market, we are pleased with the group's overall progress," said Mr Johnson.
"Current indications for Christmas trading in the UK are better than last year, and provided that this trend continues we are expecting a significantly stronger second half in the UK."
Airfix has its origins in a company founded in London in 1939 by Hungarian-born Nicholas Kove which manufactured cheap rubber toys filled with air.
Its first model kit was a 1:72 scale model of the Golden Hind, Sir Francis Drake's ship, produced in 1952.
Due to its massive popularity, Airfix became one of the first toy companies to have its own magazine, in 1960, and it gradually expanded through acquiring a number of other companies, including Meccano.
Its range grew to include vintage and modern cars, motorcycles, trains, ocean liners and spaceships, and children - and parents - spent hours making the models, which were famously difficult to assemble.
As its model kits became less popular, Airfix went into receivership in 1981 and was bought by Palitoy, part of the American General Mills toy group, and production moved to France.
In 1986 it was taken over by Humbrol, but suffered from falling sales as children became hooked on computer games and television.
A recent survey commissioned for First magazine found youngsters spent an average of 25 hours a week in front of either TV or games console screens - rising to 42 hours a week during the school holidays.
www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/10/bcnairfix10.xml
Two of Britain's best-known toy and hobby brands are coming together with news that trains group Hornby has rescued the collapsed Airfix model aircraft kit company.
Hornby is buying Airfix for £2.6m and said it plans to reinvigorate the iconic brand, which collapsed into administration in August. The deal also includes the Humbrol enamel paints and aerosols business.
As well as focusing on its traditional plane, tank and ship kits for model enthusiasts, it plans to introduce new products aimed at the younger market. It also plans to step up marketing of the brand.
Hornby chief executive Frank Martin said Airfix and Humbrol are an "excellent" strategic fit with Hornby, which has a track record of reinvigorating hobby brands.
"We have taken steps to re-align the cost base of the manufacturing and assembly process, to create a solid base from which this business can thrive," he added.
A detailed integration plan has already been put in place, "to ensure that we improve the profit performance rapidly".
Joint administrator Keith Hinds, at Grant Thornton, said he was delighted with the sale: "This transaction provides the best opportunity to preserve and develop what is an iconic brand."
For Hornby, which also owns Scalextric, the deal is part of its strategy to build an international hobby business.
Along with the Airfix deal, Hornby reported profits of £1.4m for the six months to the end of September.
This was sharply down on the £2.5m earned in the first half of the previous year but Mr Martin said the group is "making excellent progress towards our objective of building an international hobby business and reducing our dependency on the UK market".
Mr Martin said trading in the first half suffered from weaker consumer spending and the distractions of the football World Cup, as well as the warm weather, "which is not conducive to indoor hobby activities".
But he is confident on current trading: "Looking ahead to Christmas, we are in good shape. We have an excellent product range and current indications are that we will experience a significantly stronger performance in the second half."
business.guardian.co.uk/story/0,,1944524,00.html?gusrc=ticker-103704
