MRX Metalrax Group

RNS Number:4605J
Metalrax Group PLC
25 April 2000


Progressive reduction of "group exposure to the automotive industry" for
Metalrax Group

" ... the sequence of record profits" to be extended - Mr Eric Moore


A progressive reduction "in group exposure to the automotive industry", is
suggested by Mr Eric Moore, chairman of Metalrax Group PLC, engineering
specialists, which reported #14.23m pre-tax profit - a record in 1999 for the
16th consecutive year.  He also expects a further extension in "the sequence
of record profits".

Mr Moore discloses that for the third year in succession, cash inflow from
operating activities has exceeded pre-tax profit, improving shareholders'
funds equity interests by 7.1% to #46.42m.

In reporting on the engineering and storage products division, now with
housewares, one of two, he states that this has provided the "capabilities
required for the joint development of projects in partnership with key
customers".

He also indicates that various intricate assemblies are hidden within
appliances, and that "Millennium Dome visitors may be aware of glass panels
moving silently, but pay no attention to the function of our plastic covered
conveyor bearings going about their business".

A widening of the customer base and improved operating margins are reported in
this division, where "improved operating margins from niche markets helped
offset the downturn in business from some established customers".  The setting
up of an express stock facility enabled the group to handle large numbers of
small value orders, and resulting levels of business "have remained strong for
retail installations which are frequently provided on very short lead times". 
 Mail order catalogues have also remained an area of expansion.

In housewares, key acquisitions "have increased the stature and coverage of
this division" at a time when major retailers have found the advantages of
one-stop shopping, placing larger orders with fewer suppliers.

One highlight is the further potential to develop international sales through
closer co-operation with leading multiple retailers.  New products, he adds,
and investment in a new range of domestic bakeware "in tune with the needs of
the 21st century" have further established the division's competitive lead. 
Investment has made available the latest product styles and colour options,
complemented by soft ribbed tools and gadgets for the kitchen, while new
finishes in foils and laminates create fashionable quality products.

Mr Moore also outlines progress in the United States, where group companies
"continue to develop products in conjunction with some of the world's largest
retailers".  The range of gadgets was supplemented by the introduction of a
new Fizz-Keeper pump and pour top to keep soft drinks from going flat.  He
adds: "The introduction of new sharpening products has been effective in
giving further momentum to ambitions of becoming the single source vendor to
key US retailers".

Metalrax Group PLC, a broad spectrum engineering group, continues its
consistent long term record of out-performing companies in its sector.


Further information:
Mr Eric Moore, chairman
Telephone: 0121-433 3444


END
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