Customers, This is a letter from our Airfix and Humbrol Wholesaler.
I write to you concerning
substantial changes which are occurring with the Airfix and Humbrol Brands.
As you are possibly aware both these Brands are owned by Hornby PLC, which
in the 2016 financial year declared an operating loss of £13.7m.
The magnitude of such a loss has occasioned significant changes and re-direction
throughout all operational aspects of the Group. A thorough review of all
business operations has been undertaken and a new business plan subsequently
actioned by the company.
As a result there will
be some significant changes flowing through to distributors such as ourselves
and therefore ultimately to retailers.
The two most significant
• A permanent reduction
in the number of individual product lines by approximately 40%, (an exercise
which began in the 2016 calendar year and which continues in 2017), and,
• A large increase in
the prices of goods which we are advised by the Company will be overall
in the region of 13%, but heavily weighted at the bottom end with Series
1 to 4 incurring increases up to 36% and Starter Sets up 11% and with varying
increases outside these areas.
While the requirement
for such changes is undoubtedly occasioned by the results of the 2016 year
and the necessity to return to profitability, the overall performance of
Hornby in this financial year, we are advised, is also being impacted by
the weakening of the UK currency as a result of the Brexit vote.