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Hornby says it will post £8m profit

7277 Views 52 Replies 12 Participants Last post by  Dennis David


Model trains and collectibles group Hornby cheered its followers with news that it will beat profit forecasts this year.

In a trading update yesterday the group said it had enjoyed better than expected trading through the final quarter of its financial year.

The company now predicts that profits before tax for the year ended March 31 will be not less than £8m.

The group, which also makes Scalextric, has been expanding its operations into Spain, France and Italy and is transferring European production to China.

Shares in the group jumped 14% to 212p on the news.

[Source - The Gardian]
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QUOTE An equivalent set to the Trix set is around £40 to £50 in the UK and even lower in the USA where volumes are much higher.

Having just looked at the 50 quid train sets you are talking about on Hattons you get a smaller loco with a plastic body with the Hornby one. The loco with the Trix set has a metal body, is a lot bigger and has a high degree of detail for 10 quid more. So you can take your pick, theres not a lot in it.
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"Maybe there are a large number of potential wanabee continental modellers who would welcome UK type budget prices and standards? "
theres me for a start!
i have just discovered the PIKO hobby range. fantastic! OK the detail isnt A1 but its good enough for me and they are only £40 for a big german electric! i was a little dissapointed that they didnt announce an expansion to this range this year.

Peter
QUOTE Having just looked at the 50 quid train sets you are talking about on Hattons you get a smaller loco with a plastic body with the Hornby one. The loco with the Trix set has a metal body, is a lot bigger and has a high degree of detail for 10 quid more. So you can take your pick, theres not a lot in it.

€109 is actually £78 at the current exchange rate of about €1.38 per £1.

This is too much money for a starter set with one loco and two wagons. Junior likes to have lots of bits to play with and is not fussed about metal bodies and detail. This is how dad might see it when looking at the packaging. And a big loco looks a bit lonely with just 2 wagons. Better to offer a small loco with two to four wagons.

Maybe the new Marklin owners need to look closely at their marketing department.

Happy modelling
Gary
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QUOTE Maybe the new Marklin owners need to look closely at their marketing department

The previous owners already went on a bit if a starter set drive creating about four new starter sets. Two anologue and two digital. These are good value when you consider what you get. Metal bodies would have more chance of lasting with junior getting a bit boisterous as kids do. But I have to give it to you. Smoky Joe is cheaper if your preference is for a small plastic loco with several wagons.


QUOTE From a starter point of view and getting new blood involved the UK have got it right

Yes they do. But I would suggest that Trix and Roco also have it bang on for the German market.

The best value by far in my opinion are the Roco digital start sets mentioned before. They are the cheapest way to get into DCC.
I bought one myself a while back for that very reason.
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I'm a big proponent of ROCO as well. I'm glad they're back from the grave so to speak. I just hope they don't turn their backs on N-Scale.
QUOTE The best value by far in my opinion are the Roco digital start sets mentioned before. They are the cheapest way to get into DCC.

Bachmann currently do a DCC starter set for the UK with 2 locomotives and 3 wagons for around £79. Excellent value and with incredible play value.

And Hornby DCC is almost upon us.

The Roco digital starter sets are top value if you are interested in European outline.

You definitely maximise the DCC benefits £ for £ or € for € by entering at the budget end of the market.

Happy modelling
Gary
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QUOTE (Gary @ 2 May 2006, 09:08) <{POST_SNAPBACK}>Bachmann currently do a DCC starter set for the UK with 2 locomotives and 3 wagons for around £79. Excellent value and with incredible play value.
Don't forget that the Lokmaus has more options than the E-Z command. With the Lokmaus you can control more than 10 locs (not at once ofcourse). You can also program your decoder up to CV 99. And the Lokmaus also is a very nice handheld control.

QUOTE (Gary @ 2 May 2006, 09:08) <{POST_SNAPBACK}>The Roco digital starter sets are top value if you are interested in European outline.
There are shop-owners (here in the Netherlands) who separate the Roco startsets and sell them 'piece by piece' (to earn more). So it's possible that you will find a Lokmaus, with booster and adapter for about 40-50 euro.

Werner
No, i'm not a Roco-salesman, just a satisfied costumer
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Some of the new ROCO starter sets have the new MultiMouse DCC system.

This is far more advanced than the LocoMouse2 and makes the Bachmann EZ system look like a wooden stick.

It might be worth buying one of these sets just for the MultiMouse system and flogging the rest on eBay.

Hornby are initially only offering the Select system in their trainsets. Not worth it because it's very limited, the Elite is the one to have.
However, it might be worth buying the trainset for the decoder fitted Jinty, class 08, Pendolino etc, and flogging the rest (including the Select system) on eBay.
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is there really any point in getting peoople to start modelling in 3 rail?
3 rail is a has been.
3 rail is past it
3 rail is dead.

Peter
Im not sure if anyone has noticed this but does the 08 in the digital set look like the old crappy one? with inside frames?
QUOTE is there really any point in getting peoople to start modelling in 3 rail?
3 rail is a has been.
3 rail is past it
3 rail is dead.

You do know that not all German manufacturers mainly make three rail?


The reason I mention it is that none of the manufacturers mentioned make three rail as their main product. I think there seems to be a bit of an obsession developing. You seem to be seeing three rail even where it isn't.


You are right though. It would be mad starting in three rail.
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Marklin are in a different situation to Hornby Dublo in terms of 3 rail.

Hornby Dublo had a relatively small range and was not considered to be a collectable at the time.

Marklin have a long history with 3 rail and a large collector base.

Their current 3 rail track actually looks pretty good, has a look of 2 rail about it, although is expensive.

The real issue is that it is totally incompatible with anything else that anybody else produces. And so they can only sell their track system to Marklin users. This limits their market to Germany and expats living outside Germany who have a fascination with Marklin.

When times are tough as they are in Germany, they are unable to compensate for this by large sales in overseas markets where the economic cycle is favourable.

Now I don't know how the Trix brand is doing however I suspect that Marklin make more money out of 2 rail Trix than they do out of 3 rail Marklin. The daft thing is that Marklin is the stronger brand.

I would simply drop Trix and call it 2 rail Marklin. Instant cost savings and instant appeal to new markets.

Maybe the new owners have a similar idea.

Now Hornby do have ownership of the Hornby Dublo brand and trademark. Maybe the time is right for a relaunch as an upmarket version of Hornby with retro packaging.

And maybe Hornby should develope and reintroduce a 3 rail track system so that Marklin have some competition. This should ensure a further healthy increase in Hornby profits!

Happy modelling
Gary

PS not really!
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QUOTE The real issue is that it is totally incompatible with anything else that anybody else produces.

Roco, Fleischmann, Lilliput (German Bachmann), Brawa and Piko all do three rail AC locos. This is exclusively to encroach on Marklins three rail AC market. They really have to do this due to Marklins dominance of the German market. While three rail AC may seem a bit of an anachronism to us they do have to excercise a degree of loyalty to their following and continue to provide AC three rail product to people who have been buying this for many years. Like the guys who don't want to modernize and take DCC on board there are also many who have no wish to change over their system to two rail DC and find they have many locos which they can no longer use.

Trix express was a three rail DC system which died out a long time ago but up until recently Trix did make the occasional model for this small market. Maybe a similar approach could be used by Marklin.
A solution would be to gradually faze out the three rail AC and simultaneously increase the two rail DC.
This may in fact increase sales as many people who run two rail DC do not look at the Marklin catalogue and do not know they can have wagons and coaches converted to DC wheelsets for free by the shop.

QUOTE Now I don't know how the Trix brand is doing however I suspect that Marklin make more money out of 2 rail Trix than they do out of 3 rail Marklin. The daft thing is that Marklin is the stronger brand.

I would be very interested to see this as Trixs new product did actually contract this year. There were no new American HO items this year but a few new European items especially budget ones. Maybe their research suggested that this is where there future is?


QUOTE I would simply drop Trix and call it 2 rail Marklin. Instant cost savings and instant appeal to new markets.
I do not care which it is called but would not like to see it disappear as it is fantastic product. I don't think this would be an issue for anyone except Marklin three rail diehards.
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QUOTE You are right though. It would be mad starting in three rail.

Or madly in love with all of the great locomotives that they produce. I don't have the space for HO but if I did I would switch to Marklin in a second and never look back. Heck my wife thinks I'm mad already for playing with small trains.
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QUOTE I don't have the space for HO but if I did I would switch to Marklin in a second and never look back.

The reason I think you would be mad is that it restricts you from also operating American HO and British OO on the same layout. Unfortunately most of us can only have the one layout due to size restrictions. As most of Marklins locos are also made in two rail DC format you don't miss out on too much. However if you know that all you will ever model is German HO then there is only one choice. Marklin.
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"I don't have the space for HO but if I did I would switch to Marklin in a second and never look back."
why on earth would you do that?
they may be good but they aint that good. i think you wold have to be barking to start with 3 rail in this day and age. i admit the track dosent look too bad but why would anyone start modelling in 3 rail? what happens when one of your freinds brings his new 9F round and pops it on your track? or your grandson comes over with his hornby thomas? how are you going to explain the virtues of 3 rail then?...

Roco and fleishmann are just as good and they cover most of the range. and you dont have a grandson throwing a tantrum because his thomas dosent work!

on a side note i did once try and convert a marklin loco to 2 rail but no luck. the problem was that the wheels wernt insulated at all. i would have had to replace all the wheels and the motor. or alternativly just buy a roco.

Peter
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QUOTE (pedromorgan @ 5 May 2006, 13:19) <{POST_SNAPBACK}>you dont have a grandson throwing a tantrum because his thomas dosent work!

That's right. And that's why I won't be building an N gauge layout either as I am sure the tantrums will start then too. Besides the kids gotta get too close to see the N gauge blighters and if they are that close to the layout its likely to end in tears...
QUOTE (pedromorgan @ 5 May 2006, 07:19) <{POST_SNAPBACK}>and you dont have a grandson throwing a tantrum because his thomas dosent work!

The solution: Make sure you'll have your own Thomas
:
http://catalog.lokshop.de/MAR/2006/E/H0/image_15.html

Werner
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