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· In depth idiot
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QUOTE (Doug @ 27 Jan 2009, 09:27) <{POST_SNAPBACK}>.. One wonders is consolidation and redress is a better option.

Do they have a long term goal? Does that goal favour shareholders or customers...?

Do we just accept these price rises?
That we accept higher prices is the gamble Hornby have to take. Pitching it just right so that there is enough perceived value to keep customers buying, enough revenue to satisfy shareholder requirements for dividend and share price growth.

There's nothing much to consolidate, if Hornby are running the typical development and marketing business model engineered to suit the economic conditions that just went belly up. 'Hornby' as an asset is a package of intellectual property rights, tooling and expertise. The UK buildings may well be leased, the production of the physical goods is fully contracted out, the money to buy the production runs probably borrowed. It's all geared to the 'lean and mean' high return on assets ratio method of business operation, that worked spectacularly well when credit was cheap and readily obtained.
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