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PostPosted: Fri 19 Jun 2015 19:46 pm 
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few stories in the news about hornby delisting from london stock exchange and switching to AIM exchange.
http://www.ft.com/cms/s/0/524d4be4-158e ... abdc0.html

any thoughts on the article?

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PostPosted: Fri 19 Jun 2015 19:52 pm 
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The article is behind a paywall, so I've really no idea what it says, but I can't see it affecting customers, just shareholders, it might just cost less to be listed on one exchange over another.

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PostPosted: Fri 19 Jun 2015 20:03 pm 
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sorry, i clicked through from google news, and it showed me the story.
here is another link. they want to raise capital to service their debt and continue with their business strategy
http://www.lse.co.uk/AllNews.asp?code=n ... ows_ALLISS

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PostPosted: Sat 20 Jun 2015 18:18 pm 
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Well, it's not good news, is it? A short quote from that FT report:

Quote:
Hornby, the UK toy train maker, plans to raise £15m through the issue of new shares and move from the London main market to trade on Aim. The company said the capital raising would be used to pay down debt. Without the raising it warned it “does not currently have the ability to repay part of the existing bank debt which falls for renewal in December of this year”.

(Bold text is my emphasis.)

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PostPosted: Sat 20 Jun 2015 18:29 pm 
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Apparently, they are letting their suppliers do their own QA.

Edit: Weird! :scratch: When I wrote this I could have sworn that there was a link to a train store that had documented problems with some of the new Hornby releases. I don't think I imagined it as I still have the link up in my browser but ... :shrug:

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PostPosted: Sat 20 Jun 2015 19:32 pm 
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Is not necessarily bad. A small company that is building a strategy will be investing in the strategy, and not sitting on poles of cash. To service the debt they are selling shares to raise funds. If they had not returned to profit I would be more worried.

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PostPosted: Sat 20 Jun 2015 20:07 pm 
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To me that looks like planning for the worst rather than any actual problems. The debt is up for renewal in December. In this case i'm guessing they mean the overdraft facility/ bond issue runs out and there is no guarantee that it will be extended and would have to be paid back as a result. So they are just planning for the possible and when things improve they can always gradually buy back the shares. It's probably cheaper than bank loan.

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