MRX Metalrax Group

RNS Number:4811V
Metalrax Group PLC
12 December 2005


Issued by Citigate Dewe Rogerson Limited, Birmingham on behalf of Metalrax Group
PLC
Date: Monday 12 December 2005

                                                               Embargoed: 7.00am


                               Metalrax Group PLC
                               Trading Statement


At the time of the interim results announcement in September, we referred to the
down turn in consumer spending and the impact this was having on the group's
Housewares division as a result of the decline in retail footfall. This trend
has continued and indeed accelerated and it has now become clear that the group
will not see the level of sales upturn normally experienced at this time of
year. Consequently, the board now believes that the outcome for the year to
December 2005 will be significantly below market expectations.

Trading within the Engineering and Storage division has been resilient, which
together with the implementation of the strategic review and consolidation of
operations within both divisions has mitigated some, but not all, of the adverse
impact from houseware's volume and margin decline. The initiatives generated by
the strategic review of the group's businesses have been implemented
progressively throughout the current year and the benefits should be seen in
2006. The losses incurred in the housewares injection moulding operation have
been eliminated by disposal of a business. The previously announced closure and
the cessation of under performing housewares operations have been achieved on
time and to budget. Critical mass has been increased in our foundry operations
with the consolidation of our two companies onto one site, and the New Year will
see further earnings enhancing changes and the benefit of new contracts recently
awarded. We are also pleased to report that the Cooper Coated Coil business has
been successfully integrated into the group and is performing ahead of
expectations.

The Board anticipates that the dividend for the year will be maintained which
reflects confidence in the longer term outlook and the strength of the balance
sheet.






Enquiries:
Richard Arbuthnot, Chief Executive           Fiona Tooley
Metalrax Group PLC                           Citigate Dewe Rogerson Ltd
Tel: 0121 433 3444                           Tel: 0121 455 8370
E-mail: info@metalraxgroup.co.uk             Mobile: 07785 703523
www.metalraxgroup.co.uk





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