Hornby's share price soars as Barclays grants lifeline on banking covenants

 
Catherine Neilan
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The Thomas the Tank Engine maker is getting a lift (Source: Getty)

Hornby's share price soared more than 15 per cent this morning, after the troubled toymaker was granted a last-minute lifeline on its banking covenants.

The firm behind Thomas the Tank Engine warned back in February that it was on course to breach its covenants, alongside yet another profit warning. Chief executive Richard Ames was given the heave-ho shortly afterwards.

Today it said it was "engaged in constructive dialogue with Barclays Bank and is pleased to announce that the bank has agreed to waive the March covenant tests".

Trading is in line with its (lowered) expectations, with sales down two per cent year-on-year, although UK revenues are up four per cent.

Roger Canham, executive chairman of Hornby, said: “The group welcomes the continued support from its lender, Barclays.

“Recent trading has been encouraging and the board is pleased with the positive like for like growth that our core UK business is delivering. “We will update shareholders on the continued progress that we are making when we announce our results for the year in June.”

Shareholders seemed encouraged by the news: Hornby's share price was up 15.9 per cent in early trading.

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