By Ian Walker

Hornby is seeking shareholder approval to cancel trading of its shares on London's junior AIM, saying it believes re-registering as a private company would better allow it to continue its transformation.

The models and collectables group--which houses its namesake Hornby train and Scalextric car racing sets--also said Thursday that it is conscious of the limited liquidity of its shares on AIM balanced against the regulatory burden and cost of maintaining the public quotation.

"The directors are confident that operating as a private entity will provide Hornby with the necessary agility for swift decision-making and efficient execution of strategy whilst not depriving shareholders of material benefit," the company said.

The board plans to hold a general meeting on April 1 to seek approval for the cancellation and if cleared it expects the delisting to become effective from April 7.

It said that Castelnau and Aurora, which own 54.89% and 14.90% of its issued share capital respectively, have agreed to vote in favor of the resolution at the meeting.

Hornby added that it remains on track for year-on-year sales growth, despite weaker trading in January and February.

It said new product ranges launched at the beginning of the first financial quarter have been well received, with associated orders up 22% on year.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 13, 2025 03:29 ET (07:29 GMT)

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