Hornby PLC (LSE:HRN), known for its model trains and Scalextric sets, has recently announced the addition of Mike Ashley, the proprietor of Frasers Group PLC (LSE:FRAS), as a consultant. This development comes a month after it was disclosed that Frasers Group had increased its shareholding in Hornby, marking a strategic investment move.
Mike Ashley, who founded Sports Direct, will be offering his expertise through his private firm, Mash Holdings. His role will involve providing support to Hornby’s CEO, Olly Raeburn, particularly in the areas of miniature vehicle production, as noted in a company statement.
Additionally, Ashley’s consultancy will extend to broader aspects of the business, including systems, operations, and logistics, aiming to enhance the overall functionality of the organization.
This new consultancy role underscores Frasers Group’s approach to actively contribute to the businesses it invests in, thereby generating value for the shareholders of both Hornby and Frasers Group, which also owns Flannels.
It’s important to note that Ashley, Mash Holdings, and Frasers Group will not be compensated for these consultancy services.
In February, Frasers Group, which holds stakes in various companies including Boohoo, Currys, and Asos, disclosed that it had increased its stake in Hornby to 8.9%. Hornby’s products are already a part of the product lineup in GAME stores, owned by Frasers.
Chris Wootton, the Chief Financial Officer of Frasers, commented at the time, “Hornby’s distinctive heritage brands are a key part of GAME’s product range, and we are excited about the potential to further utilize our retail logistics and distribution capabilities. This move aligns with our ongoing strategy to pursue strategic interests that enhance value for all stakeholders involved.”
