Last week Hornby issued a market statement that contained the dread words; “below current market expectations”. This is never good. Hornby currently have a net debt of £8.5 million – but that’s down from £12.8 million a year ago.
Hornby’s challenge seems pretty clear. Who’s buying Scalextric at a time of heightened job insecurity?
Hornby are looking to diversify in order to spread the risk and look for new revenue opportunities. One such opportunity seems to come in a new partnership; a global deal with Mantic Games. The statement said;
“A global distribution agreement with fantasy war gaming specialist Mantic Games. Hornby will distribute Mantic’s “Kings of War” product range under our highly complementary Humbrol brand. In doing so we will enter the lucrative fantasy war gaming market, and provide a further vehicle for sales of our Humbrol paint ranges.”
Whereas it’s unlikely we’ll see Hornby retail partners investing in game tables in the way Games Workshop stores do this partnership will certainly increase the number of outlets people can check out Mantic’s Kings of War range. It’s good news for Mantic.
However, I think the real challenge to Games Workshop comes in via the painting side of the hobby. In particular, Hornby are using their Humbrol range to promote this partnership. If Hornby can tap into the repeat business that army builders will bring them then they’ll be very happy. Games Workshop might have to watch out for Humbrol launching “just for mini” ranges of paints, supplies and tools.
Hat tip to Wee Gamers.
