LONDON – Hornby PLC (LON:), the well-known model railway brand, has taken steps to strengthen its financial position through a strategic transaction involving its own shares. The company confirmed that Kirstie Gould, the Chief Financial Officer (CFO) of Hornby, has subscribed for new shares as part of a broader agreement related to the disposal of a subsidiary.
This development follows the company’s announcement on November 5, 2024, of a conditional agreement to sell its wholly-owned subsidiary, LCD Enterprises Limited, to EKD Enterprises Limited. EKD Enterprises is owned by Lyndon Davies and his family, with the sale amounting to approximately £1.38 million. Lyndon Davies is also partaking in a transaction with Hornby, where he will sell his 0.9% stake in Hornby (1,526,627 ordinary shares) back to the company for a nominal sum of £1.00.
To facilitate this buyback and ensure Hornby has sufficient distributable reserves, Gould has purchased 5 ordinary shares at £0.22 per share. The transaction took place today, and the shares are expected to be admitted to trading on the AIM market of the London Stock Exchange (LON:) on November 26, 2024. These new ordinary shares will have the same rights as the existing shares.
Post-transaction, Hornby’s issued share capital will consist of 169,853,775 ordinary shares, with no shares held in treasury. This figure will serve as the denominator for shareholders to calculate notifications of interest or changes in interest in the company as per the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
The company’s actions, including the disposal of the subsidiary and the internal share transaction, are part of Hornby’s ongoing efforts to manage its capital and reserves. The information regarding these transactions has been disclosed in accordance with regulatory requirements, providing transparency to shareholders and the market.
This financial maneuvering by the Hornby management team is based on a press release statement issued by the company and represents a factual update on the company’s equity structure and director dealings.
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