The news that Frank Martin is to retire from his role as Hornby chief executive was made to the city this morning, as the company also outlined a senior team restructure below board level.
Martin (pictured) has held the position of chief executive since 2001, leading the transformation from a narrow business focused on the UK to a much broader group.
To help with the transition, Martin will stay with the group as deputy chairman and will retire on or before June 30th 2014.
The process to appoint a new chief executive will begin immediately.
At the same time, there will also be a restructuring of the senior team below board level. The aim of this is to create a simplified, more streamlined reporting structure that more closely reflects the current shape of the business. A one-off restructuring charge of around £0.5m will be recorded this year, which is expected to be largely offset by cost savings in the year to March 31st 2014.
Hornby is due to announce its preliminary results for the year ending March 31st 2013 on June 7th. The group said that trading has been in line with expectations, with the broadening of the supplier base continuing. This is expected to lead to an improvement in delivery reliability.
"I am pleased that the business is in a more stable shape going forward," said chairman, Roger Canham. "Our supply chain is improving and our brands remain popular. I am satisfied that the steps we have taken will lead to an improved financial performance in the future.
"Management succession is an important priority for Hornby. We have started the process to identify and select a new chief executive who will lead the next stage of Hornby's development.
"I am delighted that Frank is staying with the group during this transition, so that we will continue to benefit from his knowledge and enthusiasm."
Martin added: "Hornby has faced significant global challenges over the past few years. However, I believe that we have laid the foundations to improve the performance of the group and deliver value to our shareholders as we continue to drive our outstanding portfolio of brands."
