Yeah, we raised enough cash to buy half a frame in which to place a photo of a B-25 !
I'm guessing you're probably right Jan.
Hornby have produced model railway stuff for almost a century, but it's always been British only, and nothing wrong with that.
But from what I've seen of the current prices, compared to other , 'foreign', manufacturers, they seem quite expensive, in relation to years passed, and their market might be limited to the UK only, whereas many other manufacturers are in HO gauge, with an International market. It's also highly likely that most (Hornby) manufacturing is done outside of the UK, which is not always the most economical solution in the long term, as it may have been not many years ago, when packaging, shipping and import costs are taken into account,
Now although there's been a drop in profits, that doesn't necessarily mean there's been no profits - but from a bankers / financier's point of view, that could be irrelevant. It's the fall in profit which counts, and if the numbers don't add up to the pre-forecast profits, it could mean trouble, regardless if a company is still achieving sales, and making a profit.
It may well be that their other brand lines, especially Airfix, and probably the Scalextricks slot-cars, are reaching or exceeding forecasted sales, and profitable, but it's the overall profit which will effect any outcome.
Any fall in sales of Airfix lines, which I expect did happen at one stage, partly due to their re- releasing 1950's kits at 21st century prices, I would think would have recovered since the launch of re-tooled, and new kits, which we know have been excellent, although this will have taken time, and will still have 'lost' at least a small percentage of 'traditional' customer base.
It also wouldn't surprise me if sales of 'Humbrol' paints are down, given the inconsistency, and in many cases, poor quality, of the range over the last few years of changes of manufacturing source(s).
Whatever the outcome, I think it's doubtful that any of the brands, including Hornby railways, will disappear totally - there'll be another company, or companies, which I think would 'buy up' at least the stronger 'areas', perhaps selectively, and market them, either under existing brand names, or their own label, after reorganisation to ensure a more 'efficient' return on investment.
It's apparent from the various 'newsletters', announcements and so on, released by Airfix, that this side of the business, at least, is being taken very seriously, and obvious that much time, investment and effort has been, and is being, expended on research, design and tooling for new kits, such as the Meteor and Defiant. However, there have still been a few errors, relatively minor I'll admit, that have resulted in a kit being very good, rather than exceptionally good, and these seem to be the result of perhaps not quite getting initial research totally right, by following-up any slightly 'doubtful' areas with relevant questions at the source of the information. Some of this, I admit, is understandable, as it may well be that the relevant researchers / designers may be excellent in their assigned role, but might not have the extensive subject knowledge needed to identify subtle detail areas which may be in doubt.
That said, the recent releases of new kits have been and are, good value for money, especially when compared to some other manufacturers prices, although I have noticed a couple which have caused me to raise an eyebrow.
Whatever the outcome, let's hope that the company survives intact, with all its brands, even if just to see what is virtually a British 'institution' remain so, and for many years to come.