Hornby set to go shopping for another toy brand
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Your support makes all the difference.Hornby is looking to expand into new toy and hobby areas in a move which could see the model railway company make its first acquisition in years.
The group has had spectacular success in the past 18 months on the back of soaring demand from over 40s "baby boomers". Shares in Hornby, which also makes the Scalextric slot-car racing sets, have more than trebled during this period.
With low cost manufacturing now sourced from China, Hornby is looking for other brands to add to its portfolio. It has £6.5m in cash on the balance sheet.
In an interview with The Independent, Frank Martin, Hornby's chief executive, said: "With the cash we've got and the confidence in design and production in China, we are actively looking at complementary product categories." He would not name targets, but possible areas of interest include construction kits, die-cast models and radio-controlled cars.
Hornby's founder, Sir Frank Hornby, set up the Meccano company in 1901. It was only in 1920 that Hornby developed its first train set. Meccano is now in French hands, while other brands that could be of interest include Corgi and Matchbox.
The company is also looking to expand more overseas as currently only 20 per cent of its sales are outside the UK. It believes Scalextric has great potential in the United States where it is the market leader in slot-car racing.
Hornby shifted production to China several years ago in a move which has cut costs and improved product quality. Three-quarters of Hornby's railway sales are to adults.
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