Made up of a £6m accounts facility and £6m inventory facility, the funding will support Hornby’s working capital needs over the coming years.
Leading UK hobby and toy specialist, Hornby Hobbies, is set to build on its recent success after securing a £12m combined facility from Secure Trust Bank Commercial Finance.
The news follows something of a resurgence for the business in recent years. Since welcoming a new management team in 2017, the hobby specialist has seen a substantial turnaround, with a growth in sales, and return to profit. In 2019, Hornby reported a revenue of £32.6m, which increased to £37.6m in 2020 and £45.9m in 2021.
With established brands now including Hornby, Scalextric, Airfix, Humbrol and Corgi, the company employs more than 200 staff globally, with offices based in the UK, America, France, Germany, Spain and Italy.
The facility provided by Secure Trust Bank Commercial Finance will support Hornby to meet demand, as it continues to serve the global market. Secure Trust Bank provides Asset-Based Lending to businesses across the UK and has successfully funded more than £5b of receivables since its launch in 2014.
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.”
He continued: “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.”