Hornby Shares Back On Track As Boss Quits

The boss of Hornby has quit less than a week after the 116-year-old company issued a profit warning which saw its share price halve.

Richard Ames had been at the helm of the toymaker for less than two years but in that time presided over three profit warnings in the space of just five months.

Investors have reacted favourably to his departure pushing the company’s shares 37% higher on Monday morning.

Mr Ames will leave with immediate effect with the company’s chairman stepping in for the foreseeable future.

Prior to joining Hornby, Mr Ames spent long spells at both Dixons and Ladbrokes.

Shares in the Margate-based firm plummeted more than 60% after last week’s announcement, the company’s worst day of trading since it listed on the stock exchange in 1986.

The firm, which owns the Scalextric brand, had been looking forward to a strong Christmas and sale promotion period, having resolved problems with a new internal IT platform.

But it admitted that while November and December had been strong – with like-for-like sales rising 17% – it had endured a subdued start to the New Year with a “disappointing response” to January product promotions.

[Source:- sky]