Modelmaker Hornby is switching track from the main stock market to AIM in an effort to cut costs and save its public future.
The company, famous for its model railways, Scalextric sets and Airfix kits, warned that there was a chance it could not trade as a going concern if shareholders did not approve the move.
Hornby, which today launched it Battle of Waterloo kit, has raised £15 million to help fund its planned turnaround and strengthen its balance sheet. It said that it could see light at the end of the tunnel after sales rose by 13% to £58.1 million in the year to the end of March.
Losses narrowed to £100,000 from £4.4 million last year. Chief executive Richard Ames has accelerated the company’s online sales and is crowdfunding the relaunch of some archive kits.