REG - Hornby PLC - Hornby PLC Acquires The Corgi Model Club

HornbyAnnouncement

11/03/2024 07:00

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RNS Number : 2234G  Hornby PLC  11 March 2024

11 March 2024

 

Hornby Plc

("Hornby" or the "Group")

 

HORNBY PLC ACQUIRES THE CORGI MODEL CLUB

 

Hornby Plc ("Hornby"), the international models and collectibles Group,
announces the acquisition of the assets, trade and intellectual property of
The Corgi Model Club ("CMC") from Blue 14, an investment vehicle
majority-owned by entrepreneur Jim Lewcock.  The management of CMC is joining
Hornby, with Guy Stainthorpe appointed as the Brand MD of Corgi.

CMC was established in 2021 as a third party partnership with Hornby, creating
and selling contemporary editions of classic Corgi Models from the archives
through a monthly subscription model, and has grown significantly since then.

Through the purchase of £400,000 of existing stock from CMC, which will be
sold directly to Hornby customers in the future, and an additional
consideration of c. £200,000, Hornby is adding c.£2M of revenue at a 15%
operating margin and more than 6,000 active subscribers. A performance-related
earnout has been put in place for Guy, payable based on the future
profitability of both CMC and the wider Corgi business over the next three
years. An earn out is payable to Jim based on profitability of CMC over 3
years from acquisition.

Olly Raeburn, CEO of Hornby, said: "Bringing the Corgi Model Club subscription
proposition into the Hornby business makes complete sense and we anticipate
driving further growth both domestically and internationally over the coming
months and years. Furthermore, the immediate addition of over 6,000 die-hard
Corgi collectors represents a great opportunity for creating additional value
in the Corgi mother brand. This is an exciting development both for Corgi and
for the Hornby business overall."

Guy Stainthorpe, MD of CMC, said: "Galvanising our long term partnership with
Hornby in this way is a hugely positive development for CMC and provides us
with a fantastic opportunity to further develop a successful and growing
business. We look forward to joining Hornby and working alongside Olly and the
team."

Enquiries:

Hornby PLC
Olly Raeburn, CEO           01843 233 500

Kirstie Gould, CFO

Holly Barnett PR

Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber               020 3100 2222

Edward Thomas

Anake Sing

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