Hornby buys Airfix and Humbrol paints

Announced this morning:

David

Reply to
gwr4090
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gwr4090 said the following on 10/11/2006 08:06:

That's good news. £2.6m sounds like a snip for such an "iconic brand". There are lottery wins higher than that!

Reply to
Paul Boyd

Perhaps not so good when you find that Hornby only made £2.4 million profit.

Regards Jeff

Reply to
Jeff

Ooops, sorry that should be £1.4M.

Jeff

Reply to
Jeff

It's sobering when you think that is probably what Microsoft waste in a few hours ;) A lot of our recreational activities are just not profitable when you look at the bigger picture :(

Reply to
Lester Caine

Jeff said the following on 10/11/2006 09:16:

That was in just six months, wasn't it? It was down a lump compared to the same time last year, but even £1.4m every six months doesn't take long to pay for Airfix.

Reply to
Paul Boyd

compared to

Also, as Hornby pointed out, it was over a period that was not good for (any male dominated) indoor hobby.

Reply to
Jerry

"Paul Boyd" wrote

It does if you're still paying back money borrowed to buy the Rivarossi Group and Electrotren.

John.

Reply to
John Turner

I like the expression "not conducive to indoor hobby activities".

I woner what else could have been affecte?

Reply to
John Ruddy

John Turner said the following on 10/11/2006 09:45:

I had assumed, perhaps wrongly, that the profits quoted would have taken that into account. To me, profit is what's left after paying all the loan repayments.

Reply to
Paul Boyd

Seems to depend if it's working profit or real profit. The money actually made against sales, or as you say, after other 'adjustments'. Accountants do see to be good at creative book keeping :)

Reply to
Lester Caine

"Jerry" wrote

We had a remarkably good, in fact a record summer for sales.

John.

Reply to
John Turner

ader.greatnowhere.com...

So, even if that's the full year figure and even if interest rates reached 10% that =A31.4M would still fund borrowing of =A314M. In reality there are dividends to pay, etc, etc, but I still don't see why you think the Airfix purchase "not so good".

It gives them two very well known brands and adds =A36M to Hornbys sales. On the whole, I would say it's an excellent fit, complementing their existing business.

MBQ

Reply to
manatbandq

.>So, even if that's the full year figure and even if interest rates

It depends very much on what they have managed to get out of the French with respect to the moulds. It is a lot to pay for a name!!

Regards Jeff

Reply to
Jeff

Lester,

Depends whether you're trying to impress shareholders, or trying to keep your corporation tax down :-)

Jim.

Reply to
Jim Guthrie

They have probably bought that company too, both the French company and Humbrol had gone bust, IIRC it was the problem with the French company that finally sent Humbrol into administration.

Reply to
Jerry

" That's good news. =A32.6m sounds like a snip for such an "iconic brand". There are lottery wins higher than that! "

Perhaps not so good when you find that Hornby only made =A32.4 million profit

What I think you may be forgetting is the Tax Man !

Any 'losses' after buying the three parts of the Humbrol group can be set against tax, buying the trade names of 'Airfix' and 'Humbrol Paints' must have accounted for a fair proportion of the sale value.

The big questions are " who else would have taken these parts of the group off the administrator AND have Hornby the right experience and spare cash to develop the brands ? "

Reply to
Dragon Heart

Or about 30 seconds of what is being spent in Iraq.

kevin

Reply to
Kevin

" That's good news. £2.6m sounds like a snip for such an "iconic brand". There are lottery wins higher than that! "

Perhaps not so good when you find that Hornby only made £2.4 million profit

What I think you may be forgetting is the Tax Man !

Any 'losses' after buying the three parts of the Humbrol group can be set against tax, buying the trade names of 'Airfix' and 'Humbrol Paints' must have accounted for a fair proportion of the sale value.

The big questions are " who else would have taken these parts of the group off the administrator AND have Hornby the right experience and spare cash to develop the brands ? "

Administrators aren't the least bit concerned who acquires a company as long as they get the maximum amount of cash for it.

(kim)

Reply to
kim

Surely what /really/ matters is whether or not it means I might still get a model lifeboat...

Reply to
Arthur Figgis

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