Leading UK model train manufacturer, Hornby, has secured a £12m combined facility to support its requirement for working capital over the coming years, to meet demand and serve the global market.
The company, which trades as Hornby Hobbies Ltd, secured the facility from Secure Trust Bank Commercial Finance. It is made up of a £6m accounts facility and a £6m inventory facility.
Hornby, which has its headquarters at Margate in Kent, develops, produces, and supplies hobby and toy products to the global market. Founded in 1901, Hornby brands also include Scalextric, Airfix, Humbrol, and Corgi. With offices in the UK, America, France, Germany, Spain, and Italy, the company employs over 200 staff globally.
Following a resurgence for the business in recent years and a new management team in 2017, there has been a substantial turnaround, with a growth in sales and a return to profit. In 2019, Hornby reported revenue of £32.6m, which increased to £37.6m in 2020 and £45.9m in 2021.
Lyndon Davies, Chief Executive at Hornby, said:
“The past few years have been transformational for Hornby. It’s been our priority to keep the business on track and thriving for the millions of collectors and hobbyists across the globe. Since welcoming our new management team, we have expanded our workforce, enhanced our market knowledge, and established partnerships with the best manufacturers.
“The support that we have received from Secure Trust Bank is set to prove invaluable, and this new facility will help us to continue creating timeless products that our customers love. Its commercial finance team took the time to fully understand the needs of our business, making the process quick and easy.”
Tony Young, Regional Sales Director of London and South-East at Secure Trust Bank Commercial Finance, said:
“It has been a pleasure working with Hornby and getting to know the management team. Hornby is a household name, and the success over recent years reflects the hard work and dedication of its team. With this facility in place, Hornby can continue to thrive and invest in a legacy that started more than a century ago.”