A group of shareholders of model maker Hornby have been forced into a climbdown in their bid to oust the company’s chairman following a string of poor financial results.

The toy train company, which also makes Scalextric and Airfix brands, announced the group – representing about 20% of its shareholders – had withdrawn their request to hold a general meeting calling for the removal of Roger Canham.

Last month the firm was given a letter from Ian Alexander Anton signed on behalf of ROY Nominees and HSBC Global Custody Nominee, which own about a fifth of the company.

It called for the removal of Mr Canham as a director of the company and to replace him with Mr Anton with immediate effect.

However, Hornby revealed a fortnight later that a survey of its other major shareholders showed Mr Canham had the backing of about 54% of the voting rights in the company.

Mr Canham joined Sandwich-based Hornby in 2012 and was made chairman in 2013.

Since then the company has lost £31 million.

It has restructured its UK and European operations after losses of £13.7 million last year – although it still expects to make a loss when it reports its results for the 12 months to the end of March in the summer.

Last month, Mr Anton said: “The last five years under Mr Canham have been disastrous for Hornby’s shareholders.

“I believe it is time for new leadership as, in my experience, positive change nearly always requires fresh perspective.”

The general meeting had been due to take place at the offices of the company’s solicitors Berwin Leighton Paisner on May 16.