6 January 2020
Christmas Trading Update and Increase of Loan Facility
Hornby plc (the 'Company') announces that following the key Christmas trading period, sales and margins have continued to be ahead of last year. Furthermore, the new product previews for the coming year to trade and presshave been encouraging with new nationwide retailers choosing to stock our products.
In the context of continuing this growth trajectory, the Company has been in dialog with key stakeholders regarding the investment plans for technology and products over the coming year. Phoenix UK Fund Limited, the largest shareholder and subordinated lender, has agreed an increase to the maximum principal amount available under its existing secured credit facility (the 'Facility') by £3 million to an increased maximum principal amount available of £9 million. Other than the increase to the maximum principal amount, the terms of the Facility remain unchanged. All advances made under the Facility become due and payable in June 2021 with interest charged at 5 per cent. plus LIBOR on funds drawn, compounding on a six-monthly basis, and the higher of 1 per cent. or LIBOR on undrawn funds, compounding on a six-monthly basis.
The funds will be used to capitalise on the positive momentum in the business and increase investment in technology and products for the coming year.
The Company is also currently exploring ways in which the balance sheet structure could be optimised for further future investment and growth; and will update the market accordingly.
Related Party Transaction
Phoenix Asset Management Partners Limited ('Phoenix') is interested in 93,524,498 ordinary shares of 1 pence each in the Company, representing 74.66 per cent. of the current issued share capital of Hornby. Given that Phoenix is a substantial shareholder in the Company, the increase of the Facility is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Independent Directors consider, having consulted with Liberum Capital Limited, the Company's nominated adviser, that the increase in the Facility and its terms are fair and reasonable insofar as the Company's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
Lyndon Davies, CEO 01843 233 500
Kirstie Gould, CFO
Liberum Capital Limited, Nominated Advisor and Broker
Andrew Godber 020 3100 2222
Financial PR Advisor
Scott Fulton 07788 144993