8th Jul 2016 12:10
LONDON (Alliance News) - Hobby products and collectibles company Hornby PLC on Friday said its shareholders have approved its proposed equity fundraising, which will back the restructuring plan the company recently tabled.
In June, Hornby, known for its miniature cars and model train sets, outlined plans to reduce the scale of the business and cut costs. This will involve Hornby cutting itself back to only the most profitable and cash-generative parts of the business, a move which is expected to slash the group's revenue by around a quarter.
The plans will be part-funded by a GBP8.0 million equity fundraising, in which Hornby will issue 29.6 million shares at 27.00 pence per share. This fundraising was approved by Hornby shareholders on Friday. Shares in Hornby were untraded on Friday, having last traded at 29.42p.
"Since the trading update in February, we have received strong support from our shareholders and our lending bank, which has culminated in the placing and open offer being comfortably oversubscribed," said Executive Chairman Roger Canham.
"The proceeds of the fundraising will strengthen our balance sheet and means we are well positioned to execute the new business plan, as outlined in the circular. We look forward to updating shareholders on progress in due course," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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