HORNBY PLC

Capital/Financing Update • Jun 21, 2024

National Storage Mechanism | Additional information

RNS Number : 4477T

Hornby PLC

21 June 2024

21 June 2024

HORNBY PLC

EXTENSION OF LOAN FACILITY

Phoenix UK Fund Limited, the Company's subordinated lender, has agreed an extension to the term and the amount of its existing secured credit facility (the "Facility"), providing further support for the Group's stated turnaround strategy.

The Facility is being extended from £11.25 million to £12.55 million and the term extended by 12 months to 31 December 2025. Other than the extension to the loan term and amount, the terms of the Facility remain unchanged for £11.25 million of the facility, the agreed extension to £12.55 million will be at a higher interest rate of 15% on funds drawn.

All advances made under the Facility become due and payable in December 2025 unless the facility is extended.

The Company will have the option to draw down on these funds to capitalise on the positive momentum in the business and fund the continuing turnaround .

Related Party Transaction

Phoenix Asset Management Partners Limited ("PAMP") is interested in 121,662,481 ordinary shares of 1 pence each in the Company, representing 71.63 per cent. of the issued share capital of Hornby. Given that PAMP manages Phoenix UK Fund Limited, as a substantial shareholder in the Company, the extension of the Facility is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.

The Independent Directors consider, having consulted with Liberum Capital Limited, the Company's nominated adviser, that the extension to the size and term of the facility is fair and reasonable insofar as the Company's shareholders are concerned.

This extension provides the company with additional headroom to allow the benefits from recent changes in structure and investments in future growth to flow through. It also recognises the time required for the impact of current cost saving and efficiency driving initiatives to take effect. 

Hornby Plc

Olly Raeburn, CEO

Kirstie Gould, CFO

01843 233500

Web:  www.hornby.plc.uk

Liberum Capital Limited (Nominated Advisor & Broker)

Andrew Godber

Edward Thomas

Anake Singh

020 3100 2222

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