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| Hornby to close warehouse in Kent | Hornby to close warehouse in Kent |
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| Hornby is closing the warehouse at its Margate headquarters in a move that could see the model railway maker leave its historic site on the Kent coast entirely. | Hornby is closing the warehouse at its Margate headquarters in a move that could see the model railway maker leave its historic site on the Kent coast entirely. |
| Announcing an annual loss of £4.5m, the maker of model trains, Airfix kits and Corgi cars said it would transfer its warehouse to an industrial estate at Hersden, 11 miles from Margate. The warehouse's 25 permanent staff will join an outsourced logistics provider with no loss of jobs. | |
| Hornby has been based in Margate for 60 years. It made products there until the 1990s, when it transferred manufacturing to Asia and the old factory became a warehouse. But the site is run down and struggles to handle big lorries used in modern deliveries. | Hornby has been based in Margate for 60 years. It made products there until the 1990s, when it transferred manufacturing to Asia and the old factory became a warehouse. But the site is run down and struggles to handle big lorries used in modern deliveries. |
| Hornby is understood to be considering moving the rest of its operations and 150 employees from Margate, including sales and administration and the company's visitor centre, which plays host to thousands of enthusiasts every year. | |
| Richard Ames, Hornby's new chief executive, said: "The facility in Margate that has housed the company's UK stock since manufacturing started to move to China in the late 1990's, has been an area of concern for some time. | Richard Ames, Hornby's new chief executive, said: "The facility in Margate that has housed the company's UK stock since manufacturing started to move to China in the late 1990's, has been an area of concern for some time. |
| "This has concluded with a decision to move to a new, third-party warehouse, run by an independent logistics specialist, DS Logistics. This is a key decision for the company, and one not taken lightly, given the history and tradition of the current site." | "This has concluded with a decision to move to a new, third-party warehouse, run by an independent logistics specialist, DS Logistics. This is a key decision for the company, and one not taken lightly, given the history and tradition of the current site." |
| Hornby's departure from Margate would be a blow to the seaside town, which is trying to reverse decades of decay since holidaymakers began jetting to hotter countries for their holidays. The Turner art gallery has attracted visitors and a new creative scene but Hornby remains a significant private sector employer. | |
| Hornby's loss for the year ended 31 March widened to £4.5m from £2.5m a year before. The company was hit by falling sales as a result of manufacturing problems as well as the closure of Modelzone, its biggest customer, and a £1m fall in the value of unused foreign currency it had bought to pay suppliers. | |
| Ames, who joined two months ago, said trading in the current year had brought no nasty surprises and that he was confident the company could be turned around. Hornby's shares rose 2.6% to 78.5p. | Ames, who joined two months ago, said trading in the current year had brought no nasty surprises and that he was confident the company could be turned around. Hornby's shares rose 2.6% to 78.5p. |
| Hornby has suffered recurring problems with the same manufacturer of its model railways since 2010 and has been forced to issue a string of profit warnings as a result. It has extricated itself from the contract and Ames has pledged to improve production. | |
| Ames said the supply problems had damaged Hornby's relationships with specialist retailers and customers. He has launched a communication drive to reconnect with enthusiasts through the company's website, social media and trade magazines. | Ames said the supply problems had damaged Hornby's relationships with specialist retailers and customers. He has launched a communication drive to reconnect with enthusiasts through the company's website, social media and trade magazines. |
| "This is an extremely important issue, as these are the true fans of the brands. It is key that we do not take these fans for granted. New colleagues, now working in the social media team, are focused on providing daily updates and interactions with fans and sharing the information that drives the passion for collecting, modelling and driving our products." | "This is an extremely important issue, as these are the true fans of the brands. It is key that we do not take these fans for granted. New colleagues, now working in the social media team, are focused on providing daily updates and interactions with fans and sharing the information that drives the passion for collecting, modelling and driving our products." |
| The website has been revamped and now features a blog by Simon Kohler, a company veteran of 35 years who was Hornby's railway guru until he retired earlier this year. |