(Alliance News) - Hornby PLC on Monday said its largest shareholder Phoenix UK Fund Ltd has agreed to increase the maximum amount of its existing credit facility following positive Christmas trading period.
The AIM-listed model train set maker said sales and margins have continued to be ahead of last year following the "key" Christmas trading period. In addition, Hornby said the new product previews for the coming year to trade and press have been "encouraging".
Turning to credit facility, Hornby said Phoenix UK Fund has agreed to increase the maximum amount by GBP3 million to GBPO9 million, with the terms remaining unchanged. The loan is repayable in June 2021.
Hornby said the funds will be used to capitalise on the positive momentum in the business and increase investment in technology and products for the coming year.
Looking ahead, the company said it is currently exploring ways in which the balance sheet structure could be optimised for further future investment and growth.
Hornby shares were trading 1.1% lower in London on Monday at 37.60 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Hornby (HRN)