Hornby shareholders looking to oust chairman

Model train set maker Hornby is set to hold a general meeting after it received a formal request from leading shareholders to remove chairman Roger Canham.

Alexander Anton and New Pistoia said it was time for a change after five years under the current chairman, during which Hornby has lost £31m. The letter was signed on behalf of ROY Nominees and HSBC Global Custody Nominee, which own about 20% of the company.

It called for Canham to be replaced by Anton with immediate effect, as he has "a strong track record in addressing challenging corporate issues and forcing through positive change at underperforming businesses".

Anton said: "The last five years under Mr Canham have been disastrous for Hornby’s shareholders. I believe it is time for new leadership as, in my experience, positive change nearly always requires fresh perspective.

"I am confident that Hornby’s fortunes can be turned around and value can be created for shareholders if changes are made. Now is the time to act otherwise shareholders face further losses. I ask shareholders to vote in favour of the proposed board change.”

Last week, Hornby - whose share have fallen sharply following a string of profit warnings recently- said that the first stage of its turnaround has now completed and it has successfully restructured its European and UK operations, resulting in structural improvements to the cost base.

The company confirmed on Monday that it had received the letter at the end of last week and advised its shareholders to take no action at this time.

Canham joined Hornby in 2012 and became chairman in 2013.

At 1130 BST, Hornby shares were flat at 33p.