Hornby has made its finance director Steve Cooke its new chief executive, two months after its previous boss quit following a share price collapse.

The model maker, based in Sandwich, which is also behind the Scalextric and Airfix brands, is looking to appoint an interim finance chief in the near future.

The firm revealed in February it expects to make losses of £6 million this financial year and was at risk of breaking its lending agreement until Barclays waived its loan conditions for March.

Large areas of the business have since been placed under review, with plans for a new £1.6 million visitor centre in Ramsgate among the projects under threat.

Executive chairman Roger Canham took over the reins after former chief executive Richard Ames left the business when its share price fell by more than 70% to 23.96p in the days after its profit revelations.

He will continue in the role for the time being but will resume a non-executive role by the end of the year.

Steve Cooke joined Hornby in June last year from London-based LSL Property Services.

Mr Canham said: “I am delighted to announce that Steve will be Hornby’s new chief executive.

“He has made a significant contribution to the group since he joined and I am confident that he will lead the recovery in the financial performance and delivering value for our shareholders.”

Mr Cooke said: “Hornby has an excellent portfolio of much loved brands.

“I am excited by the prospect of leading the business and I am looking forward to the challenge of driving Hornby forward, building on the progress that has already been made in transforming and modernising the group.”