Are Hornby in Financial Trouble? | BIG Losses & Crashing Share Prices

[@DavidHenden-o4f]

It's not just the trains but also Scalextric a few years ago they introduced a new track called start. Why would anybody who already has a track invest in a new set of track that doesn't connect to the main Scalextric track. So they invested all the that money into new tooling to make a competitor for their own track 😢 not surprisingly they stopped making it.

[@ChadwickModelRailway]

What an excellent video Rob. The research that you have carried out is both phenomenal and admirable. Regards Charlie

[@LittleWicketRailway]

Thanks Charlie 👍🏼

[@PaulinesPastimes]

Apart from the name, the Hornby of today has nothing to do with the one started by Frank Hornby. Hornby today is a direct descendant of Tri-ang, even the red and yellow brand colours are Tri-ang. Margate is the Tri-ang factory rebranded. I think it is important to be accurate about history. Having said that, it is a worry that Hornby seems to be flailing about with all sorts of ideas that seem to cost more than they deliver. I hope they can consolidate and find a smooth business path that may lead to more cost effective products that don't cost too much. The COVID bubble seems to have created more interest in the hobby and not just with old people either, there are lots of young ones looking starry eyed at train shows as well. Fingers crossed for Hornby.

[@Allthegauges]

Unfortunately, As You said, Accurascale, Dapol & Rapido are able to make more details models at a much lower cost. Which is also driving people away from Hornby, Why pay £300+ for a model that they can’t even package securely that has a high chance of arriving damaged. When You can buy a more detailed model from someone else much cheaper and packaged more securely, I hope Hornby are able to change things, But we shall have to wait and see.

[@speleokeir]

The counter argument to that is they all tend to specialise in slightly different models. Accurascale in big diesels, Rapido in pre-grouping, etc. Only Hornby and Bachmann have a broad range. I'm mainly a steam fan (with a few early diesels). Hornby have by far the best range of steam locos, therefore the vast majority of my models are Hornby. However their prices mean I tend to buy a lot secondhand and of course Hornby don't see any of that money. Pushing more people to the secondhand market is arguably a bigger threat to Hornby than other manufacturers limited ranges IMO.

[@Whizzy-jx3qe]

Accurascale’s sister company Irish Railway Models,Irish Railway Models and Murphy Models catering for the Irish market something Hornby have neglected for yrs and continue to do so. Hornby doesn’t seem to understand that modeller’s in Ireland purchase their products,so it would be nice to see Hornby produce an Irish RTR steam model like the 800 class (only three were built at Inchacore Dublin by CIE) In all my time attending various model railway exhibitions throughout Ireland I’ve never come across a Hornby stand.

[@nails6365]

I love the hornby brand, but let's face facts here - the products are cheap and dire, poor packaging, garbage controllers, worst sounds I've ever heard from a sound fitted model and top tier products are far over priced given the plastic empty shells. Other brands like accurascale for example, offer exceptional detail affordable prices

[@Whizzy-jx3qe]

@@nails6365Quality control is also an issue.

[@tomasrogers2176]

​@Whizzy-jx3qe that'll never happen, they had their chance and they chose to ignore it. They could easily have done it in the past especially after the Lima purchase in the early 2000's, mark 3 and mark 2 for coaches in Irish livery using the Lima moulds. Before Murphy and IRM, irish modellers were screaming for rtr models and hornby sat on their hands. Best chance for an Irish rtr steam loco will be from IRM.

[@StormmyStormmy]

Hi, great overview of a company that back in the day was like a religion to many modellers, speaking from experience I don’t buy Hornby products anymore unless they are in sales or maybe coaches that never have any issues as far as I’m concerned, I spent a lot of money on 2x’s HST packs with noisy fan units that were horrendous, I got no help from Hornby even though they were weeks old! I even offered to pay for some new fan units but they said they didn’t do spares, that was 2 years ago and I haven’t purchased any Hornby products since, the customer service department is terrible in my opinion, the locomotives run faultless but the fans have been disconnected because they are not fit for purpose, I don’t care if modellers say it’s Hornby bashing, it’s not bashing it’s calling out a crap feature that doesn’t work as it should, I do like some of their new locomotives but I won’t purchase them unless they are seriously cheap and I can get spares if they fail to perform and breakdown, it’s a shame real modellers don’t run the company because some of their products are very bad and let modellers down on a regular basis with cost and corner cutting exercises that ruin their models, their quality control is non existent and the way items get here from China in a state that aren’t picked up even by retailers, the constant use of very old mouldings is beyond a joke now, the prices are beyond a joke so I steer clear until they get their products correct and fit for purpose, thanks for sharing.

[@LittleWicketRailway]

The lack of spares department is a common complaint. Establishing that would 1) be a revenue stream and 2) improve their reputation with modellers.

[@_RandomPea]

@@LittleWicketRailway Hornby just seeing it as spares is also a bit short sighted imo, if they just produced a limited range of chassis and then sold 'alternative' add-ons, i.e. different liveries, body's etc. then people could buy a single loco but rather than buy a new one, alter an existing. At which point you can bet your dollar that they would soon decide to buy a second chassis and make themselves 2 locos.

[@sophiaevans9908]

Having worked in a model shop I can say that Hornby were the worst to deal with. One time they sent us an invoice to pay for some preorders and, upon phoning them to pay, we were told that our preorders had been sold to someone else! Needless to say, no more preorders with Hornby from that point

[@andofthedrew5171]

back in the late 80's early 90's when I was a kid my dad had a model railway and Hornby was struggling then I've always remembered Hornby struggling to stay afloat. And that was before the rise of video games and digital media like we have today. me and my dad are working on a new OO layout now and I always watch your vidoes 🙂

[@nigeldoran]

A very good assessment of the situation. When the Hornby importer for Canada closed its doors all my pre-orders were cancelled. I approached Hornby for a trade account for my store. After 12 months of emails and phone calls which went unanswered by the Hornby International Sales Manager we decided to give up on Hornby. We are the largest exclusively British model train retailer in North America - deciding not to carry any new Hornby products was an easy decision - absolutely no regrets.

[@jcgamer892]

I live in the US and anything Hornby touches is avoided like the plague for the bad quality. Rivarossi used to be considered a good quality brand, with moderate pricing, here in the states but after they got acquired by Hornby, the prices for them went sky high and quality into the toilet or the loo as the brits say. Had a close family friend spend close to 2k (Model plus import tax) on Big Boy model with all the bells, whistles, lights, working fake steam, DC/DCC back in 2018, only to receive it completely smashed. The only good news is if you have any pre-Hornby Rivrossi, that's now going for a premium on the used/second hand market.

[@nigelcartwright5986]

Wonderworks (the Hornby visitor centre) is a brilliant place to visit. Problem is it's geographical position makes it very difficult for 90% of the country to go (unless you happen to be on holiday in East Kent).

[@peddersmeister]

yeah i've often fancied visiting hornby but as you say being at the a*** end of the UK, it's not a place that can be visited quickly if you live, North, or West of London unfortunately that's most of the UK :(

[@gs425]

Just remember this....Hornby/ Triang have gone bust many times before. And so have nearly ALL the other manufacturers. Its the nature of the beast of model railways. It's nothing new.

[@tonydaniels-iw2jy]

They need to address their pricing. With a typical loco now in the region of £300. I no longer even consider purchasing new rtr models. Having said that I have just purchased a brand new rr+ Class 47 with dcc sound for £107.00 so it can be done. This leads to the other issue you raised, direct sales, direct from hornby this model is about £40 more and, I am not sure that was sound fitted. I am sure my local retailer had a margin on the sale. How big a margin are Hornby seeking?

[@LittleWicketRailway]

All good points. Seems like they need big margins to generate any profit.

[@gpnorman9453]

LGB massively increased their prices and have turn the page. I dont see myself chucking out 300 or 45 quid for a wagon. No thanks.

[@LittleWicketRailway]

@@gpnorman9453 I thought LGB closed? Edit: just googled and they were bought by marklin in 2007.

[@raymondleggs5508]

This is why I didn't get into OO and stuck with HO by ROCO, Piko Etc. I would by the Rivarossi and LIma and jouef stuff by hornby that's the only reasonably priced products they seem, to sell. A bit pricy still but less than hornby.

[@_RandomPea]

The local retailers chuck the prices down to move them off their shelves. My local shop said the new models just sit on the shelves collecting dust. They sell more 2nd hand. When they need space they send them all back... Total waste if you ask me. Sure we would all buy them if the pricing was reasonable in the first place.

[@jedidalek]

I work in manufacturing and everyone is taking it hard right now. Terrible projections for early 2025 especially for luxury items. The cost of living crisis is catching up hard to industry. If the customers don’t have the money theres not much anyone can do.

[@petercole2092]

You are correct about Mike Ashley he buys shares in companies he knows are likely to end up bankrupt and can be brought cheap to add to his business empire. One theory I have about the TT scale is Hornby wanted to create a new market that the company has complete control over but didn't have the money to pay for development hence the huge 00 gauge price hikes to cover the cost. The protectionist retail policy of only TT purchases could be made though their website together with no retailers was allowed to stock it was about controller and maximum profits. But this harmed TT only when Hornby allowed retailers to sell it sales improved. Hornby and Bachmann have failed to understand the impact of new manufacturers on the market and have fallen to the wayside. I have no answers on what Hornby could do but time is limited for a turn around.

[@ChaileyLeavers11]

Agree I think SK did a load of damage TT120 is a disaster, and requires massive investment for a long time. He also stopped supplies to Rails, their biggest retailer as they produced their own loco.

[@allandoyle3555]

When I was a teenager here in Australia there used to be a decent selection of Hornby and lima products ..I don't think we get the same selection from Hornby anymore...not what's offered in the UK.or maybe I'm imagining it..

[@stewartdickson7184]

Wonderworks should have been built next to a major heritage railway

[@gregmacdonald927]

Very useful video. Thanks for taking the time to research/produce it. As you point out you simply cannot compare HORNBYwith the likes of Accurascale or Rapido. They have to innovate to find new markets. By far the greatest innovations recently have come from them, being Hm7000 and TT. Not saying you have to love either, but surely both are examples of them trying to turn it round. They def need to work much harder to offload stock. And yes, improve direct sales to. 24hr turnaround.

[@pearlyhumbucker9065]

I love it. Looking at HORNBY as THE company in model railroading. Thats very much UK....... And one of the reasons given for this is the "globally popular" brands that Hornby owns, such as Rivarossi, Jouef, Arnold and Lima. This is interesting, because it is pretended that these brands are the crown jewels of model railroading - and not companies that would probably no longer exist, had HORNBY not bought them. One may ask what HORNBY actually intended to do with these "world-famous" brands? They would hardly have brought anything to their own customer base, because these brands are all continental European and have hardly anything to offer to UK modellers with their strange OO gauge on narrow-gauge tracks. And for the rest of the modellers who model according to continental European or proper standard gauge models, these brands had too little to offer even before HORNBY bought them. At best, they outbid each other with poor quality

[@Blur4strike]

I'm from the US and even I know the prices that Hornby sells their wares at are absurd. Lower the prices, improve the QA of the products, fix the distribution of products in retail, and actively work to get newcomers into the Model Railroading hobby, it's not rocket science. Hopefully management isn't too thick-skulled to fix the mess they made for themselves.

[@bramfokke1460]

I don't understand why Hornby did not invest in producing H0 models instead of TT. The gauge is identical, so they might be able to reuse parts of the mechanism. They already own several H0 manufacturers. And there almost is zero British rolling stock available in H0, which is the biggest model railroad market out there.

[@muir8009]

Just remember for all those lamenting the introduction of different scales, obviously tt being the case in point here: remember All manufacturers have had to take a plunge into an alternate gauge market. If they hadn't every model railway nowadays would be in gauge II, and that's the reality of it, for better or worse. The venture of going alone in a new size with a sole manufacturer at the start: gauges V, IV, III, II, I, 0, 00, US 00, standard, 000, N, Z, T, plus the narrow gauges. In fact theres really been about three scales where theres been more than one manufacturer, and even then very few: H0, S, and TT. For a manufacturer it can be good to spread your wings, otherwise gauge II would be it: that was far and away the preferred size, with 0 for for compact layouts, gauge I slowly taking a pre-eminent place over II, whereas elsewhere I and II were losing to standard, which eventually lost to 0, 00 being a bit of a non-starter with limited products. Also remember that Hornby was going to launch S as a 00 alternative...

[@Teesbrough]

Thank you for another very useful piece of analysis. It’s good to have some hard evidence against which to test my thoughts. Those are that: 1) Simon K had been allowed too much rein to commission new products; and 2) Hornby’s Head Office overheads are excessive compared to its new ‘cottage industry’ competitors. The Post Office Horizon Inquiry put recent former Chairman Henry Staunton on witness stand on 1st October. From 51’34” he talks about ‘huge numbers swinging around’ giving a net defecit in 2022 of £160m. He blames management not having a sufficient grip on costs. I wonder if Hornby suffers from a similar attitude. A telling sign was Margate’s very recent shop sale included the ultra brand new Grand Central HST set in its bargain discount boxes.

[@Jaherick]

After starting back into the hobby back in 2021, I went to 009 as it gave me the room to build with n gauge track with the convenience of OO models. I looked at TT but there is nothing being modelled that I want as i would model southern. I wouldn’t spend out on a loco i have no interest in so TT is a non starter for me. The only thing i now buy from hornby is their HM7000 decoders for the sound. Shame really as i always had hornby stock.

[@SDR702]

Lower your prices Hornby. It's too expensive for what it is.

[@LittleWicketRailway]

If they didn't increase prices then they'd either need to sell more or cut costs. Upping prices is the easy option.

[@SDR702]

@@LittleWicketRailway And possibly a fatal one too.

[@gpnorman9453]

@@LittleWicketRailway Sell more at lower price, Production run will be more thus lower cost.

[@stormbowman7148]

You guys are just starting to pay nearly the same as we do on the continent. Hornby is still cheap compared to continental manufacturers.

[@andrewwarcup684]

​@@stormbowman7148I was going to say something similar. UK model prices are starting to catch up with the real world.

[@peterm7548]

Hornby is unsustainable from what you present here. They are being overtaken by newer firms. Their products are of variable quality, highly priced - except Railroad - and customer support is very basic lacking even a decent spares facility being more a toy sales operation rather than a modellers support system. For example I am now upgrading my old Hornby Mk1 coach couplings using an independently created 3D printed NEM pocket requiring a bit of work on each bogie. By contrast when I was upgrading old tool Bachmann Bullied coaches I could buy new Bullied bogies from Bachmann with upgraded couplings and metal wheels and just replace the old bogies. In all I would not mourn the end of Hornby.

[@stevepammer6433]

No one wants Hornby to fail. However, everyone has a budget, and for me the number one criteria is quality. Rightly or wrongly I view Hornby as suspect on this front and hence won’t invest in Hornby products unless I’m sure of its quality. I entered this hobby two years ago and have to date purchased two Hornby items, magnetic couplings and TTA wagons which are both excellent. If my view is typically it shows what needs to be addressed. People will pay for a quality product.

[@supersprinter1564]

I'm not going to slate hornby but when I was buying in the 80s and 90s they had lots of products I was interested in I just couldn't afford now I can buy what ever I like they don't sell anything I'm interested in I've always wanted a 310 or a 308 from hornby but it never came they just remade the apt I already have and the new one doesn't have the appeal. And the tt farce imo was to cut costs without actually asking the market what it wanted

[@blakesmith6303]

Not only that but a lot of what they sell now are worse than what they sold in the 90's. I tried to build a layout recently with new Hornby track and not a single point out of about 20 in the shop had a properly working spring so I switched to Peco. I wanted to buy a model of Mallard but the only one available was their 'railroad' version with an unfinished paint job (why is my 90's Flying Scotsman a better model than a 2020's one?). They were just releasing their super detail Pullman coaches when I left the hobby in 2002 and was hoping to get some only to find the ones they sell now are the Tri-ang models! I wanted to get new coaches to replace the classic teaks but again they stopped producing their nice teaks in favour of the old ones I was looking to replace, and getting anything decent was impossible unless I wanted an entire train of only BR green brake thirds. So I bought some Bachmann coaches instead...

[@vijeolook]

Thanks for the great video Rob. Hornby also produces models for the European & US markets under the Arnold, Rivarossi, Joeuff, Electrogen & Lima brand names. All of these brands were formally the "Hornby" companies of their respective countries so even more important that Hornby can turaround its business and become financially viable as well as producing great models.

[@warrenlehmkuhleii8472]

It is a pity, we do have companies that, at least publically, are doing great like Rapdio and Accurascale, but they are not being weighed down by years of poor decisions and scandal after scandal. Every groundbreaking release from Hornby has seen some major setbacks, like the Black Fives, TMC just massively discounted the DCC Sound version of the Turbomotive £200. How does Hornby expect to shift the ones they are keeping to sell themselves if the retailers have had to make such massive cuts? The one problem was a QC problem, the other was a miscalculation about the demand for a one-off locomotive that doesn't even have the appeal of being in preservation. Honestly, if Hornby can sort out those two issues, maybe moving to a Rapdio-style order book system, then I think they could turn it around. Because, when they work like they are supposed to, they are great models. I love my Standard 2MT, in fact, I have another one in the post right now.

[@LittleWicketRailway]

There's no reason they couldn't do order book style production as they currently like to announce everything years before it's ready. It would be much harder if they were doing it Bachmann style with quarterly announcements with products on shelves shortly after. I suppose part of the reason that might not work is because if you preorder then you pay silly prices so most of us are prepared to wait. Class 87 City of Birmingham was a good example for me. Didn't think it'd sell out, waited until it was in the TMC sale recently.

[@gpnorman9453]

Rapido has had set backs with that poor GWR tank, My Accurascale Deltic went back, just gave up the ghost. I have only have 1 motor issue with an S15 from Hornby and are pretty happy with the suff I have bought.

[@andrewwarcup684]

I know quite a few people who will not pre-order. Call them old fashioned but they like to see the model in the flesh before buying.

[@michaelquinones-lx6ks]

@@andrewwarcup684 Same here, What's the point with this online shopping nonsense anyway i want to interact with human beings not be a slave to the computer i too like to see the model up close and personal.

[@grandaddyoe1434]

@@andrewwarcup684 Did anybody pre-order the 2MT loco? That was years long in coming, yet the four- / six- wheeled coaches were produced quickly.

[@jonathanchalk2507]

I'm surprised that the TT range is making a profit. I hope it survives.

[@brianartillery]

TT scale was popular for a short while in the 1960's. I had a friend at school who had a lovely layout. However, the scale gradually faded from view in the early 1970's, as 'N' gauge was introduced, and disappeared completely. I remember seeing lots of TT stuff being sold in a jumble sale.

[@alanmusicman3385]

Rob, this is very good coverage of a very sad tale. It occurs to me that Hornby has a rather large missing dimension from its business. In many industries the strategy is to sell the product cheaper but to make back additional (and often recurring) money on spare parts or consumables. Manufacturing additional sets of model parts for each new model would probably not add a lot to the cost of a production run and could be used to create a saleable stock of spare parts. If it was done well the cumulative revenues from that would add up - especially if the parts were priced like automtive parts are to recoup the costs and make a profit. Hornby seems to do very little of this - for example I tried getting something as seemingly simple as a replacement coach bogie for a MK2 BR coach (of which Hornby must have made and sold millions) but Hornby has none. I am no fan of the sell-at-cost make-money-on-spares-and-consumables business model that so many industries now use - but it does seem to work for them. I would have grumbled about paying £7-8 for the coach bogie (if it had been available) but I would have bought it.

[@gwheregwhizz]

The only business model that works in 2024 is the Accurascale model. Mainly online, everything is preordered, so they know how exactly how many to order from the factory, so they are not left with thousands of items in the warehouse that need to be heavily discounted or scrapped. Preordering means that if the demand is not there to make the release profitable, it doesn't progress past a CAD drawing (Steampunk, TT:120 etc.). Hornby's problem is they need to borrow cash because they can't dispose of their stock. Solve that problem, they will survive.

[@LittleWicketRailway]

Agree about the model except TT. I don't think they could have sold that concept as preorder, I think they needed to launch with something tangible and capitalise on the buzz of a new thing. My issue with the strategy was limiting it to direct sales. Also heard the track was crappy.

[@_RandomPea]

@@gwheregwhizz that's not considering that they probably have got order contracts with the Chinese factories that they signed up to, so they have to produce certain quantities or risk breach of agreement 🤝... There's probably loads of stuff like that at play here.

[@digitalcareline]

The problem is this strategy only works on existing collectors. Yes it is a good strategy for a new company, but not one that allows them to grow once they have saturated existing customers. For all their faults, Hornby are trying to find new customers and that is much more risky as they pump so much more into marketing and more risky ventures - Steampunk for instance. They would love to replicate what Lego has achieved - an old fashioned toy that was really under pressure from all sides, that worked well with innovation to re-generate as successful company. Model Railways is just one part of their business, so they are pulled in many different directions.

[@modelrailwaysandme]

Hornby would shift more stock if they didn't keep slapping the Beatles branding on Ex Thomas bodyshells and reusing the older tooling constantly for irellivent liveries.

[@sarahdisco-dolly1150]

Phoenix have a stake in Games Workshop who have moved into the same strategy of using direct sales, limiting items available to the independent sales outlets until the activity reduces from direct sales leaving the retailers with excess stock long after the initial hype has faded. GW also have a HQ / Visitors Centre that is exteremely popular. GW make a lot of money. Warlord Games are former memebers of the management team at GW before it went public and whilst nieche compared to GW they have a regular drum beat of games whilst retaining a core WW2 Wargame as their mainline. Hornby owning all of the classic brands seem to be a company without a single focus other than nostalgia, which is no bad thing but needs a bit more of a direction. And yes the visitor centre and HQ is at the end of the world, too far away for the majority.

[@Tsurnari]

One thing I don't like when buying direct from Hornby, is getting stung on delivery charges. Over the last few years I've pre-ordered several items at a time and when doing the check-out I see the total delivery is £5.95 (last time i checked). However as the Items were all sent out one by one, I get charged for each. That mounts up to a lot of extra money out of my pocket.

[@IronHorseRailways]

It's almost like Hornby aren't sure where they belong in the market anymore.

[@LittleWicketRailway]

Exactly. What do they want to be? What is their "purpose" in corporate nonsense speak?

[@IronHorseRailways]

@@LittleWicketRailway growing up - you got your Train set from Hornby and a few other wagons to go with it - maybe a few extra locos - that's it You didn't go to them for top end stuff...

[@gpnorman9453]

@@IronHorseRailways Eh Top End? Schools Class, MN,BOB, WC, Q1, S15, N15, Duchesses, LNER pacifics. All good stuff and top quality.

[@DJ_K666]

​@gpnorman9453 half of that was thd old Tender drive tat. The MN and Q1 were the first top end locos. The WC and BoB were formerly tri-and locos which, with a detailing kit, could probably create a decent model. The Schools, Duchess, Princess etc were all old models re-tooled a couple of times

[@GelatoTaco]

Hey, you know what'll definitely save them though? More 80s toolings at double the price they should be and more trash tier Beatles junk! That'll definitely turn around nearly a straight decade of losses!

[@LittleWicketRailway]

It's not for me, but I'd bet that the Beatles stuff sells purely because it's Beatles branded. Although I suspect the market for it is shrinking.

[@GelatoTaco]

@@LittleWicketRailway One of the packs from a year or two ago was a limited edition of 1 thousand, and nearly every online model retailer has plenty of them still in stock and at a discount, so forgive me if I'm a bit dismissive of Beatles model sales numbers.

[@blakesmith6303]

​As a lifelong fan of both the Beatles and model railways, none of it has any appeal to me except for the Yellow Submarine Eurostar which is of course out of production. That means even if I buy the one thing I want from this range Hornby won't get any money from me because I couldn't buy it during the brief window they were selling it.

[@John2E0GTU]

It would be interesting to know how the other companies are managing financially. It may not be a bed of roses for them either.

[@davidjowett8195]

Given the number of famous brands that they have in their portfolio, it would be a crying shame if the company ceased trading. Let's hope a solution can be found that doesn't decimate the product line up.

[@grandaddyoe1434]

Cessation of trading would see other brands sold off, if potential buyers see the likelihood of decent returns. Otherwise, they become historical footnotes.

[@andydavidson9440]

A good review of the state of Hornby, and they have to recognise their traditional market leader position is challenged in a number of sectors. As you suggest the newer competition is leaving them behind yet their prices indicate they deserve a premium, which is definitely not the case as many online reviews of the latest releases highlight. As a recently returning modeller, I have avoided buying anything from Hornby until the situation improves. It is a shame, but it suits me to be free from loyalty to their brand when there are so many other marques that impress and excite me!

[@LittleWicketRailway]

Coincidentally Sam's Trains simultaneously released a video featuring some of the worst models he's reviewed and it's mostly Hornby. Based on that they don't deserve a premium.

[@andydavidson9440]

I saw Sam’s lemons review just before yours and you both underline their current predicament for different perspectives

[@pugtrainmaster5326]

I say Hornby should do 3 easy things. 1 Update the railroad flying Scotsman giving it proper lettering and numbering 2 Shrinking there engine roster cutting out some models and taking some out of production 3 Lower their prices on the railroad range of models. Yes while it should be a price decrease over the whole range it would make the most sense to declares the price on the railroad models so more people get into the hobby and can buy those models which makes it easier. Hopefully, we will get the USA tour flying Scotsman back as well i wish they stop doing limited editions of this you have the tooling it is a model most would love or just make an accessory kit for one of their new A3 tooling adding a clip-on cowcatcher Glue able bell and headlight with Second tender as a separate product it would be cheap to produce the components and would allow for people to get scots second tender without spending hundreds .

[@christopherbellamy639]

Not just that model but others as well (J83, 3F jinty, E2, etc) that need updating/retooling.

[@pugtrainmaster5326]

@@christopherbellamy639 I agree

[@garyburford5774]

Part of the problem for me with Hornby are the extortionate pricing, poor availability of spares and what seems to be endemic poor customer service. Equally, a vast majority of their main range diesels are being done better and cheaper bythier competitors

[@neilbucknell9564]

A good, insightful summary. As you say, direct sales equals more overheads, and if they are not shifting stock straight out to retailers but selling it themselves, their inventories of unsold stock are bound to be higher. It would be interesting to know what the trade discount is - based on previous experience of the book trade, I'd guess it might be as high as 70% of RRP.

[@LittleWicketRailway]

I'd love to see the full numbers and analysis.

[@AtreiusLux]

I don't think they helped themselves with the legal hot water they got into with trying to release a Titfield Thunderbolt model when Rapido had the okay from Studio Canal. I have to admit I haven't bought any new Hornby items in a while, partly because nothing has been of interest but mostly because of price. Last things I bought new were some Ex-LSWR SR coaches and paid nearly half the full retail. It's also the RRP of some models with toolings are pushing at least 20+ years old, I got a Pug 0-4-0 when Hornby first acquired the toolings from Dapol in early 2000s and it cost me around £25 at the time. Granted there is the added DCC components but £90 for what is almost the same model now really doesn't feel worth it.

[@stephenbourne4872]

Haven't bought a new Hornby model for a few years now. Just too expensive. Hope the company doesn't fold thou as a lot would go with it.

[@ianbeeston2881]

Hornby are not the Hornby founded by Frank Hornby, they are really descended from Tri-ang (Rovex) who acquired the failing Hornby (Meccano) company in 1964 and after subsequent takeover’s decided to drop the Triang name over the older, more established Hornby brand name. I totally agree re-launching a new TT range was a big mistake. Richard Lines who was in charge in the 50’s and 60’s is on record saying that TT range was in effect a bad idea because retailers didn’t want to stock a second range, it wasn’t a great seller and was nearly as expensive to produce as the 00 range. So why Hornby chose to repeat history and manufacture a brand new version of TT is mind boggling.

[@markwalker2627]

TT120 has huge potential. Space is an issue for modellers with modern living and lack of space for layouts that has made micro layouts in 00 popular because of this, with many not wanting fiddly N gauge. TT120 is the compromise and the chance to get new modellers who have little space for 00 and not want N gauge. But Hornby going it alone with few items is a risk even with a long term plan, they needed a collaboration really to share the load but also get more products and variety available.

[@muir8009]

Richard Lines is also on record for saying after seeing the rokal set they just had to make tt scale, as it was superb. Imagine if they'd concentrated on producing tt instead of their 00 range: those 3 years must've seemed like forever to get tt into production

[@jamfjord]

Very interesting analysis, Rob, and a very nicely put-together video. The forecast doesn't look good, does it? ☹️ I must admit, I didn't think Olly Raeburn's appointment was a good sign following his brief at Paperchase, let's keep our fingers crossed this isn't history repeating.

[@alant1647]

As for the Beatles loco...to anyone under the age of 60, The Beatles are irrelevant. Anyone over the age of 60 is not going to be interested in such a tacky rip-off. I think Hornby are DOOMED, just look at the way they treat retailers and direct sales, their products and their prices and the competition. Who on earth had the bright idea of investing huge amounts of money into trying to start up a TT market? Quite apart from the concept requiring a new customer base, to a modeller it is not just the locos and track, but all the other products that go to make up a layout.

[@_RandomPea]

The idea of TT being a new market is misleading. TT already existed. The reason that Simon spouted out in the announcement video was in order to make it more accessible and attract new fans who don't have much space, but seemingly he didn't get the memo. His idea was sound. But then they manufactured complex and detailed models for collectors and with suitably large prices to boot. The release was done just before Xmas. I always thought, if they really believed in Simon's words then they would have created cheaper and fun trainsets and got them on the shelves for Xmas with a big fan fair... Nothing of this sort happened and they massively missed the opportunity that was right under their nose. personally think it was a bold and brave move, idea being for new modellers to the hobby to start there but I can tell you as a modeller new to it from late 30s I would never have paid their prices to start the hobby. OO second hand was appealing due to it's accessible pricing.

[@_RandomPea]

I just don't understand how it could be losing money, the hobby is full of new people, there's KZbinrs left right and centre promoting the hobby for free. Lockdown rekindled an otherwise dormant market and they have a captive audience of middle agers with a bit of income to spend. Nothing makes any sense. They whack up the prices and use the same tooling and chuck out the same rubbish special editions every year... Maybe that's the problem. Tt needed a massive marketing effort, it also needed to appeal to new modellers, not those that have invested huge sums in OO, yet Hornby target collectors rather than kids, who Simon k in his introduction to TT banged on about it being for... Showing a complete lack of strategic alignment from within. If only May and Waterman would put their money together and sort out the mess

[@barcooter8248]

With the advent of eBay and the sheer volume of cheap second hand models available on it from generations and generations of buyers it's difficult to see the point of buying brand new, so-so accurate, models from Hornby at high prices?

[@JohnG670]

For me they need to address their quality which (based on my TT experience) is pretty dire. Of my 7 locos 6 have failed multiple times. They also need to bring their stock to market quicker and replenish popular stock quickly. I hope they survive but I have my doubts.

[@dutchbeef8920]

“Space saving” big locos and coaches on 2nd and 3rd radius only, madness

[@davidmathie9512]

Very interesting overview of the company .I imagine the next few months are crucial .With the rise in energy prices , fuel .food etc. people are cutting back on disposable spending .I think the company may survive but for how much longer is a difficult question. Prices are getting ridiculous .I know only but second hand .

[@little_britain]

A travelling Wonderworks might be a fun project

[@LittleWicketRailway]

A pop up during the school summer holidays could be good.

[@markjlewis]

Hornby are charging high prices for models made from ancient tooling. Their various range themes such as the Beatles and Coca-Cola aren't going to appeal to serious modellers and let's face it teenagers are mostly interested in their phones, tablets and game consoles these days. Recent entrants to the model railway hobby are offering well tooled new products loaded with cool features. Bachmann have become very expensive and it is good to see that Dapol etc are challenging them and Hornby on price. I watched an interview with Pete Waterman several months ago were he was talking about catching the interest of young people to enter the hobby. One of the main points he made was that they should be able to buy models of they see out on the modern UK railway network. Hornby seem to be going in the opposite direction by offering Era One models.

[@StormmyStormmy]

Hornby are the only manufacturer that still use the large D style tension lock couplings, they were all the range 30 plus years ago, overpriced underdeveloped items is going to kill them along with price hikes that are not justified, TT range doesn’t interest me in any way shape or form, they will get left behind buy other manufacturers because their products are being left way behind in every department, Bachmann are very good but their prices are very bad and also unnecessary, Accurascale and Cavalex and Revolution Trains are so far ahead they’re almost out of site, it took Bachmann over 20 years to upgrade their class 08, now it’s probably going to be the best on the market to date, all Hornby needed to do was fit directional lighting to a high detailed model but they didn’t and now are left behind.

[@DJ_K666]

Absolutely. Kids like to see miniature versions of what they see out in the real world. They might like a Flying Scotsman but they'll be more interested in a model of the Pendolino they travelled on to get to the exhibition. That's what grabs their attention. Getting to actually *drive* the train is a bonus and part of what makes 'Making Tracks' a success

[@csbenzo]

I don’t know if this is legal but the forming of “the Hornby volunteers” dedicated to saving the memory and brand of preserving Hornby may be the way to go. I mean if they can do this sort of thing for community radio, then why not for model railways?

[@ModelRailwayShed]

Really interesting video, hopefully Hornby can bounce back. Cheers DEANO

[@MalcolmCrabbe]

I'm wondering if all this investment and borrowing is just because they want to keep the brand / name going... It's bad practice to keep borrowing more at high interest rates whilst you still have a warehouse full of stock.. And there lies another issue , the stock won't shift as it's old tooling, and doesn't meet todays current standards which is for more highly details and exact models at a reasonable price. As others have mentioned, newer companies have a better business model, taking deposits up front, then doing a production run to fulfil those orders, then rinse and repeat, this keeping stock levels low, with no need to pay for huge warehousing cost in the process. Any other firm that was making losses year after year would have already folded by now...

[@davetedd3633]

If only Hornby had invested in high end OO modern locos instead of TT. Their recent OO modern models eg class 91, MK4 and dvt are very basic, poorly detailed and not up to modern standards. Hornby were at the top of their game 15/20yrs ago with their 60, 56 08 etc but since then the level of detail of their new models has got much worse whilst the competition has raced ahead. They need to listen to their core customers and stop producing tat that no-one actually wants (steampunk, Beatles, coca-cola, etc). Most of my spend is now with Accurascale. They're not cheap but they produce very detailed, quality models of locos I actually want!

[@tonyshield5368]

Buying into Warlord Games was a good move if they can use that to create a hobby/modeller/gamer experience. Games Workshop - very successful - have captured many modellers/gamers when young and provide space to learn their hobby in the shops. Hornby could do similar things with Trains, Scalextric and Warlord - extending that Wonderworks idea across the country. Watching the TV program about Hornby filled me with frustration about the dynamism of the company - which is exemplified by the clobbering their business is getting by the purchasers of their products.

[@LittleWicketRailway]

I don't know much about Warlord Games specifically, but there does seem to be a growing market for table top gaming, so maybe this was a good move.

[@jamfjord]

Games Workshop is a miniatures company; they achieve success through shifting plastic by the ton. Warlord are one of the bigger wargaming manufacturers but a tiny player in comparison to GW. Blood Red Skies Battle of Britain suggests they (Warlord + Hornby/Airfix) identified crossover that they could use to expand their market share, but that doesn't seem to have paid off judging by the sets being available at huge discounts. To the outsider there seems to be a scattergun approach to strategy, but some brands (such as Airfix) seem to have a more coherent and measured approach - it would be interesting to know how those brands are contributing to the overall health (or otherwise) of Hornby Hobbies' finances.

[@LittleWicketRailway]

@@jamfjord I got the impression that Airfix might expand into non-military models. I think the new Head of Insights from Lego suggested that. Does tabletop gaming still work with 3D printers the same price as a Warhammer army?

[@tonyshield5368]

@@LittleWicketRailway Games Workshop do have a problem with copies of some of their figures, not sure what steps they take to protect their IP. GW have created a retail environment where buyers can learn modelling and gaming. Can Hornby do the same? Pete Waterman allowed young people to control trains at Chester last year -very interesting. Could Hornby allow purchasers of their trains to run them on a track in their shops?

[@hollyruston2444]

No British Railway modeller would honestly want to see Hornby fold; that said, competitors are releasing better models* at competitive prices. Hornby need to think differently... and quickly. TT is a folly, and could be the last nail in Hornby's coffin. * in my opinion

[@vernongoodey5096]

Oh forgot the obvious. remember the oo gauge live steam they’ve done the same with TT range. Someone at Hornby is LNER mad! Flying Scotsman, A4s. Yet most layouts you see are GWR or Southern if only they had bought out live steam Kings And Castles things may have been successful. Same as TT. Nothing against the LNER,LMS just financially most people in UK live in the South! Even they are based in the South. Last year at Warley the only model with nobody looking at was their TT exhibition

[@dilwich]

TT scale was utter madness from a business point of view.

[@LittleWicketRailway]

It certainly was bold to take on a really cash intensive and risky project when they were consistently making profits. Simon K implied that it's something they'd be working on for years and I guess they thought they needed to try something different as they were losing money up until the pandemic. The annual report does make it sound like it's doing well though as they had to order a lot more than they expected.

[@speleokeir]

I disagree. TT has numerous advantages over OO for Hornby: 1) It opens up markets in Europe, the US and Japan whereas as OO is just a UK market, plus a few ex pats abroad. 2) Hornby have a near monopoly with TT and don't have to compete with other manufacturers (yet) in TT, not is there a huge second hand market to compete with. 3) Most modellers have a high age profile and as they pass on they aren't being replaced by new modelers at the same rate. TT appeals to those who don't have room for OO in their homes, but find N gauge too fiddly. The hope is it will bring new people to the hobby. Whether it will remains to be seen, but it's essential to try. I think taking it from online only may be a mistake though, as one of it's appeals was being more affordable than TT and now that's no longer true. So far though it sounds like TT has been a major success and has done better than Hornby expected, though it's still a relatively small part of their overall business.

[@gpnorman9453]

Seems to be making them a few bob, so many other companies now making anything OO that ran on rails these days sucking up cash left right and centre. TT hopefully will be a good turning point for them.

[@raymondleggs5508]

should have went with DCC equipped british Z scale or N they could have joint ventured with Marklin. on the Z gauge that would have been truly innovative. British outline Z gauge.

[@stormbowman7148]

​@@raymondleggs5508Personally, I don't think Märklin cares about Hornby that much. They are perfectly happy on their own in the Z scale market. Why share? British N scale has the same problem as OO being a bastard scale. The only real choice was going either H0 or TT. A complete reset.

[@adriaandeleeuw8339]

One suspects the stock on hand is actually not as much as you would think.....in that Hornby have increased prices significantly over not only last year but in previous years as well. Carried over stock has been increased in price as well.

[@grandaddyoe1434]

Stocks are always valued at cost, not retail or wholesale price. It might end up at net realisable value, which would precede collapse . . .

[@H105]

There's plenty of stuff I want to buy from Hornby .. it's just NOT in any shops for sale.

[@lucysblade]

Bachmann are also in deep financial trouble. The small companies can be cheaper as they don’t carry the overheads. But if Hornby and Bachmann crash then how long will the toddlers survive?

[@LittleWicketRailway]

I'd heard that about Bachmann/Kader. More video content...

[@lucysblade]

Hornby is not on a trading estate outside Margate so much as on the edge of one of the largest retail parks in the UK.

[@keithg1xfl]

And Hornby Responded by RAISING their Price by Extortionent Amount, which Meant Fewer people Bought Them making their loses BIGGER

[@timbervalleyproductions]

This is a fantastic video. Really well prwsented and researched. It would be a huge shame to lose a brand such as hornby but they clearly dont know thair market well enough.

[@oesypum]

They have had items that have sold out, supply did not meet demand; yet they never appear to address this, no doubt deemed not worth their while, by some bean-counter. They also need to address quality, and customer support. Both these latter are areas where Hornby fail to deliver. Also they don't listen, they're not alone in this. Furthermore the hobby is generally pursued by the elderly, thus their customer base is literally dying out. Go to any model railway exhibition, and look at the demographic. Yes, grandad will have taken his very young grandchlidren along, but teenagers, you'll see nary one.

[@DJ_K666]

I saw quite a few younger people at both GETS and the NEC when I went so I dontbthink the hobby's dying out. In fact at last year's GETS it got so crowded that they had to close the doors both days. Let's not also forget the recent TV exposure.

[@mooglesmodelrailways]

To keep Hornby going as its the most well known manufacturer is understandable. But all stars cease shining eventually....

[@melkitson]

Was it a great business idea to introduce a new scale when there is already a huge selection? Why not grab a bigger share of the N scale market instead. They have never been been major players in the worldwide model railway market. They remind me of Philips and Sony in the videotape market. Where are they now?

[@David-g1p-v8k]

The people that bought the company have no lfeel' for model railways, just brand they could milk.

[@TenCJones]

They've failed to read the market. Who wants Beatles trains or giant Coke bottles? TT120 was very risky in these times and is not paying off. They need have some generic chassis in TT that they can plonk some freelance bodies on. Do another "Battle Space" line in with Zombies or something. Sell some of their locos as kits. Treat the retailers better.

[@jonharbour9166]

Thought provoking video Rob. Yes Hornby are in a mess. Another aspect of their woes that perhaps you didn't dwell on was their propensity to milk ancient tooling tat. There have been so many examples in recent years. The Beatles tat. The Coca-Cola tat. Steampunk tat. It is shocking that they continue to wheel out products from tooling that is older than many of their customers - look at some of their wagons! Their high-end stuff tends to be quirky and unique (Hush-Hush, Rocket, Locomotion et al) but if they included a few more quality bread and butter items (such as the humble 16t mineral wagon and get producing them with different running numbers annually, they they would ensure a steady income stream year on year. The TT gamble was brave. It's very hard to know how it is really doing. To me, it's like they have admitted defeat in OO Scale and were looking for some territory to stake a claim. I think they missed a trick with their bully-boy tactics against competitors who try to muscle in on 'Hornby's turf' (Titgate anybody, plus the 66, the Terrier, the Generic 4/6 wheel coaches... the list goes on). None of these debacles have done anything positive for their reputation. I really would like to see them survive. The industry needs them, but not if they continue to be asleep at the wheel. Other more modern competitors such as Accurascale and Rapido seem to have figured out how to thrive in this market. Even Dapol has adapted and upped its game. Bachmann thrive because they make decent models that people want to buy. How many different versions of Flying Scotsman can you sell in any given year?

[@MichaelAustin-d6k]

It may be a complete coincidence but Simon Kohler returned to Hornby and turned them around and they made a profit. Then he left Hornby and they go back into debt. Shows how good Simon was at his job:

[@the_failed_states]

Well, if you treat your clients like mugs at the same time you are facing increased competition, then it won't work out so well. Hope Airfix will be OK though.

[@tangerinedream7211]

With their Scalextric range they produce attractive accurate bodyshells of both classic and modern cars great. But as they are designed purely as home use cars that need a magnet to perform, they are missing out on the race clubs market, if they designed the chassis to be raceable, as slot it and NSR and Thunderslot, but also nicked an easily removable magnet, then they could sell to both markets. A Scalextric car at approximately £55 is poor value compared to a slot it at £65. It would be interesting to see a sales profit and loss breakdown for the group, which sector is holding up, increasing or going down. Their corgi classic reissue cars are nice and not too expensive compared to originals, have bought a few, don't know how many Airfix modellers are out there currently, seems Lego can't go wrong at the moment, they have a new tie up for Formula 1 starting next year . Difficult times for Margate, I wish them well.

[@dannyvanstraelen3273]

Like I see it, Hornby always want to reinvent the wheel, I often have the impression that while you think, now they bring out a genius idea, then next to that, they launch something as equal in stupidity, or they launch a beautiful optical design and want to have, and than degrade it whit the worsted electric motor or a faulty electronic parts, where as soon as people realize this, in the end say "eh, rather not". They still keep on relaunching the most basic, non realistic cheap loco's that were already seen in the 1970's as obsolete and "no thank you", but still launch it in a new even as absurd print on, like the Beatles - or Rovex loco's. TT, I understand curtain people are fans of this scale for what reason so ever, but does it appeal to a big percentage of train modelers, I doubt that it even crosses the 10%. We tend to forget it already failed in the 60's. The reinvented DCC Bluetooth decoder, maybe good idea on paper, but in reality, for the average DCC user not really a must have, enforced by the high prices again a "no, thank you". There are so many small negative facts that if you count them together, form a business point of view equals failure and bad management. And now the price rise in the middle of a recession, while the competition make 10x better marketing decisions, and loco's of superb quality at a sharp price, It's going to be hard for them. Hornby maybe seen as the founder and established brand of the model train world, but doesn't mean anything if they pile up failures, they house name could very fast linked to bad reputation, that is harder to get rid off, than to get it…

[@Rob1972Gem]

It’s quite simple. Get back to basics lower your prices. You will sell more product and make more money better to sell lots of product. It’s a little bit less than what you would’ve charged then to hold out for one or two really big sales you know for the millionaires that do the hobby. The entire hobby is too expensive not just Hornby airfix as well. Not name for being the best model brand in the world scale electrics their track is terrible hasn’t been updated since year.the cars very expensive for what they are. I just think they would do better going for lots of different people buying their products because of value for money rather than holding out for the well off buying limited edition sets

[@jayrap94]

I might have continued the hobby had contemporary in-service electric trains I see daily in the South and South West been manufactured. 450s, (Bachmann ran some as well as 350s), 455s, 442s, 458s, 377s would be nice to see. I have no interest in steam trains anymore.

[@rogergoldfinchelectrical4159]

I got fed up waiting years for models to arrive and they were not new ones with development bugs but reliveries. Hornby would rather rush out other models to spite other manufacturer's releases (Hattons coach; Dapol Terrier) or launch TT120 than fulfill the orders it had. Then, after telling everyone to pre-order to guarantee supply, another order with Rails of Chef Field was abruptly cancelled after Hornby stopped supplying them with no reason given. One point not made in the video is that Hornby tried this direct marketing / cut out the model shops approach a few years ago and if IIRC it didn't do well then and they had to eat humble pie. I gave up and now focus on O gauge. Rapido are making attractive, small steam locos which I've continued buying, but nothing from Hornby appeals. Small steaming locos might tempt me back, but otherwise after being treated as a second class citizen I'd happily see them go bust.

[@vernongoodey5096]

Hornby locomotives are all over priced and every model I have has some sort of problem. Wagons always seem to be too shiny yet Dapol seem to get it just right. Yet their Airfix models are superb???

[@DJ_K666]

Let's not forget that to some extent the Airfix, Mainline and Lima models from the 70s and 80s are still available, just spread out across several manufacturers. Loads of wagons are still available, the Prairie tanks, the Auto tank etc. Hornby produced the mk2D, which was truly prehistoric tooling. It's been Airfix, Mainline, Dapol and Hornby and yet you try finding a mk2D TSO... I think really Hornby should concentrate on producing up to date models, like a couple of 0-4-0s, a couple of 0-6-0s and a few bigblocos from each region and really look at the quality control and spares availability/aftermarket. And customer service. That will pay dividends.

[@dakdak7609]

There are reasonably good tax reasons for operating at a loss, but I suspect the extent of the loss isn’t part of the plan!

[@alanpennington8364]

Let's hope they can turn things around and soon.

[@LittleWicketRailway]

I really hope so too, but even a 10% increase in prices is only £5m and that doesn't come close to reversing the loss. If they can bring inventories down by £5m then that's another big chunk. Ultimately then need to sell more, at higher prices, whilst at the same time reducing costs. Edit: I would be so interested to see their 5 year financial model.

[@TheElDoctoro24]

I think the ankle biters like Accurascale and Rapido have really put a light on their high prices and aging range. It’s a shame but the customers vote with their wallets Sam’s Trains has ridiculed the silly Beatles range when they could be actually be up with the times and team up with a relevant/current Celebrity that has actually something to do with trains, they never heard of Francis Bourgeois??

[@Penguinracer]

I think Hornby need to partner with a computer games studio to produce games which feature their models (or at least virtual versions of the trains / cars / aircraft / ships / vehicles on which their models are based) with online contests awarding give aways & discounts on actual physical Hornby models. they need to straddle the virtual & physical worlds & build a connection from the former to the latter.

[@paddycoleman1472]

First up, I am a long suffering Hornby shareholder. If it were not for the major shareholders, I think Hornby would have gone under long ago or at least been bought and asset stripped. My understanding is that the major shareholders are railway enthusiasts so are more inclined to support Hornby although I am sure there are limits. The good news is that these shareholders have significant resources to call upon so can support Hornby indefinitely should they choose to. Personally, if I was them, I would take Hornby private and remove the costs and burden associated with being a PLC. You could then restructure the business without the same level of public glare and potentially IPO again in the future (assuming the business can be turned around). Hornby has amazing brands but I suspect these can also be a curse as they no doubt have and inherited inefficient processes and costs which the new entrants into the hobby do not have. I wish Hornby and everyone who works there every success as I am sure they are passionate about what they do.

[@YorkshireRailways]

Hi Rob, great video as always. For me it would be a great shame to loose Hornby as a name in the hobby. I think a lot of people like to bash them but when they are on point they make some amazing models. However they have made some controversial moves of late and I fear that too many people will be upset and put off to return to them as a manufacturer. And as you say the likes of the competition making better and cheaper models isn’t helping. Only time will tell. All the best, Harry 😊👍

[@kimmarsh5387]

They are far too expensive, but the motor design really what do they expect.

[@jonathanlake6053]

Hornby should have stuck to 00 gauge, & provide a proper after sales service with spares on all new trains for at least 10 years,built better quality electric coreless motors,invested in new models that have been track tested for at least a year & stop selling branded tat.

[@RG-Models86]

Hornby really needs to start turning this around before it's too late, if it isn't already too late. They need to knock it out of the park with some stunning models at reasonable prices.

[@rogergoldfinchelectrical4159]

PS I get the impression that Rapido's staff are very into trains and model trains; Hornby keep importing MDs and marketing staff who aren't.

[@4everdc302]

Won't know how it could be done, but if you dont have a North American strategy. Hornby is a slow death by 1000 cuts.

[@LittleWicketRailway]

I think they've brought someone in to look specifically at the international market.

[@NiallWardrop]

The NA market won't buy the product they can produce.

[@treinenliefde]

Looking through the report it doesn't look there is any information in regards to what Hornby brands are being profitable and which aren't, right? I'm curious whether or not certain brands are in a worse state than others. I suspect the model trains part is a loss maker, looking at the excess stock on the website, frequent price increasements and the large investment TT:120 has probably been. I doubt however that this can be of big influence to Hornby Hobbies as a whole. Surely other brands must also be having issues?

[@DJ_K666]

I think one issue with Hornby began in the 90s, when there were a handful of maufacturers, Hornby, Bachmann, Lima and Dapol. Hornby at the time produced some pretty nasty plasticky tender driven locomotives and a very limited range of coaches. The diesels weren't much better, badly moulded shells and plastic chassis. Add to this the fact some of the same ancient models are still being produced, ie Smokey Joe. That's fine for thecrailroad range, but newer tooled stuff is a bit hitvand miss. When they get it right, they're brilliant, but the blunders really do show theres more work to do. Add to that bad manufacturing processes and quality control issues (the Black 5) and its a recipe for disaster

[@NiallWardrop]

How long did it take Hornby to produce a diesel model with a proper all wheel drive mechanism that US models have had forever instead of messing around with traction magnets and traction tyres?

[@brianartillery]

If they had paid attention to quality control at the manufacturing point, and given up on churning out ancient, and overpriced sets of tat (Beatles pack comes to mind here), which nobody wanted, and utter rubbish, that was purportedly Era 1 rolling stock, but wasn't even close - and just pulled a ridiculous high price out of the air for it, or even updated the mechanical parts of their engines, and stopped using cheap motors, then they might just have avoided being where they are now. Having a team of 'Yes Men' in charge didn't help either.

[@terrynutlob4073]

Great video. Unfortunately I think there are two main reasons Hornby are where they are now. Firstly alot of people have jumped on the band wagon and run down every new thing Hornby comes up with. I don't hear the same criticism of Bachmann bringing out NG7 as I do Hornby TT120. I know O 16.5 has been around a long time but how many of these criticisms are from people who have no real intentions of taking up either but just want to bash Hornby for some reason. Secondly Hornby just release new items and whole systems without seemingly asking the modellers first. This is a double edged sword as The Rocket and then all the era 1 stuff seems to sell but has a limit to its sales as most will just buy one and that's it. There competition release a class 37 that can generate numerous sales through livery and number variations to many people. Unfortunately Hornby want to produce unique items, great because they have no competition, but if that unique item costs the same to tool up they are on a loosing streak from the start. I hope they can push through the financial troubles they find themselves in, but unless they start to listen and not just tell the future doesn't look good.

[@Steve_RobbieRaygun]

One particular channel seems to have a thing against Hornby, even if they say they don't. Practically every review they do slates them. I've given up on watching them.

[@pauljenkins8255]

My thoughts on this are 1) I believe that Hornby has priced themselves out of the market, 2) why not bring manufacturing back to Great Britain as the models are made in China which I believe are putting costs up, I personally cannot get anything from My local dealer as I believe that they have been down graded as they can't get items from Hornby.

[@madhatter61]

They may have huge dtocks of 00 but look at the stock levels of tt:120. Considering hornby market this as the future of model rsilways, its consistently out of stock on most items. Theyre not ordering nearly enough. Class 50s with sound sold out in about 4 hours.

[@chasesrailwaylinesrr6447]

If Hornby Don't get out of this predicament soon they might get swept up by another company

[@kimcason8764]

In Hornby's Favour is the Fact, they Got Rid of a Big headed Pratt called 'Simon'. That might Help..!😂