Published: 09:00, 12 September 2017 |
Updated: 09:25, 12 September 2017
Troubled toy firm Hornby suffered a collapse in its share price on Monday after announcing it has lost its third chief executive in four years after Steve Cooke quit.
The model maker said its boss and its majority shareholder Phoenix UK Fund had “mutually agreed” he would step down.
It comes less than a week after the Sandwich-headquartered company issued yet another profit warning following poor sales over the summer.
Mr Cooke will remain chief executive for a transitional peroid while the company searches for a successor.
Interim chairman David Adams said: “The position of Phoenix as Hornby’s majority shareholder represents a new chapter in the development of the group and the board is working closely with Phoenix to set the direction of the business going forward.
“The board would like to thank Steve Cooke for his huge contribution to the group, in particular his leadership of the first stage of the turnaround that was announced to the market last year.
“We are delighted that Steve has agreed to remain in the post and effect an orderly transition to the appointment of the new CEO.”
Hornby has spent several years trying to turn around its fortunes after lower than expected sales from the London Olympics and issues with its former Asian supply chain.
It is in the middle of a two-year turnaround plan, which it had said was on course despite reporting widening annual losses in June.
The company, which also makes Scalextric and Corgi models, suffered a 15% collapse in its share price after it revealed its profit warning last week.
Shares fell again by about the same amount following Mr Cooke’s departure announcement, although they recovered in later trading.
It is presently around 29p.
Mr Cooke joined the business as chief financial officer in June 2015 and became chief executive in April last year.
He took over two months after the departure of former Ladbrokes director Richard Ames after issuing a third profit warning in five months.
Its largest shareholder Phoenix UK Fund – part of Phoenix Asset Management – increased its stake in the company to 71% after making a takeover bid in the summer.
From academic achievements to engineering accolades and new facilities, Kent College offers students an outstanding school life.
Enter this month’s competition and you could win a luxurious return crossing!Sponsored editorial
There's no uniform or bells and students and staff are on first name terms. School life at Rochester Independent College is unique.
Every morning at 10am we play you an hour of tunes from the 90s. We call it, #WeLoveThe90s.
Play 'Say It' with Garry and Laura on kmfm Breakfast and you could win £1,000!
Wake up to kmfm Breakfast with Garry and Laura - it's Kent's alarm call.
Your No1 guide to getting married in Kent. From dresses to discos and venues to veils, we've got everything you could possibly need for your big day
Education, Training & Childcare is a special supplement published by KM Media Group four times a year. Click here for latest e-edition.
A guide for your future. For year 11 students in Kent and Medway. Click here for the e-edition.
Get the latest food and drink news, recipes from some of the nation's top chefs plus updates from Kent's vineyards and breweries.
Search in your local area to find your perfect partner in Kent, with FreshStart Dating!
PLUS, register for free!.
Read our pick of the best holiday destinations. Whether its a weekend break, or something a little bit longer, we have reviewed a wide range of holidays.