MRX Metalrax Group

RNS Number:7627B
Metalrax Group PLC
21 April 2006


Issued on behalf of Metalrax Group PLC
Date: Friday, 21 April 2006
                                                               Immediate Release


                               Metalrax Group PLC
                           "Engineering Specialists"
                             Report & Accounts 2005


The Report & Accounts for the year ended 31 December 2005 has been posted to
shareholders. A copy of the Report and Accounts document has also been submitted
to the UK Listing Authority. Further copies are also available on request from
the company's registered office or from the group web-site:
www.metalraxgroup.co.uk

In summary, the Chairman's statement contained in the 2005 Report & Accounts
highlighted:

  * 2005 full year results confirmed group turnover from continuing
    operations of #100.3 million (2004: #95.2 million) producing a pre-tax
    profit of #7.4 million (2004: #11.2 million). Earnings per share were 3.68
    pence; the dividend is maintained at 3.75 pence which is subject to
    shareholder approval at the AGM on 23 May 2006. This, together with the
    interim dividend, makes an unchanged total for the year of 5.4 pence

  * 2005 was a time of change following the strategic review at the end of
    2004, providing opportunities for improved asset allocation and focussing on
    core strengths and technologies

  * Despite several events outside the company's control that impacted on
    the planned reorganisation, including the failure of MG Rover and the
    well-reported slump in the retail sector, the group is well-positioned to
    take advantage of market opportunities across the group businesses

  * Export sales more than doubled to 27% of group revenues

  * Reviewing the division's of the business in summary:-

      o  a significant increase in turnover was achieved in the engineering
         and storage products division in spite of global fall in demand from the
         automotive industry. The pressure on raw material prices eased during
         the year providing some stability to the market and benefits should be
         felt in 2006. The storage and handling sector made a strong contribution
         to group performance. Revenues totalled #72.1 million; operating profit
         was #6.5 million

      o  the housewares division saw substantial changes to improve its
         financial performance through consolidation and disposals. This division
         produces and markets the majority of bakeware sold in Great Britain,
         together with associated ranges of kitchen tools to both retail and
         commercial markets. Revenues totalled #28.2 million; operating profit
         was #0.9 million

  * From 2006, the group will operate as three reporting segments:-


      o  The Automotive and Engineering Division;


      o  The Engineering Support Services Division;


      o  The Housewares Division



continued...

                                      -2-



  * Cooper Coated Coil and Stackright, acquired in 2005, have both
    integrated well, with Cooper Coated Coil exceeding management expectations.
    Premier Stairways, acquired in 2004, had a record year and continues to
    perform well

    Post-Balance Sheet Event:

  * The group has acquired the business and assets of The Belsize
    Engineering Company Limited together with the entire issued share capital of
    Makespace Mezzanine Floors Limited. The aggregate cash consideration was
    #2.5 million. On 27 March 2006, the group also acquired Advanced Handling
    Limited together with its Romanian subsidiary, Hidrosib S.A., for a cash
    consideration of up to #2.25 million, of which #1.125 million was paid on
    completion. In particular, Advanced Handling Limited through its Romanian
    subsidiary Hidrosib S.A. offers an excellent opportunity to invest in
    Eastern Europe and establish a position in this emerging market. There are
    significant opportunities to promote the whole of the group's expertise into
    these rapidly growing markets


  * The Annual General Meeting will be held on 23 May 2005 at 11.45am at the
    Birmingham Hippodrome, Hurst Street, Birmingham, B5 4TB.





Enquiries:
Richard Arbuthnot, Chief Executive                             Fiona Tooley
William Kelly, Group Finance Director & Company Secretary      Citigate Dewe Rogerson Ltd
Metalrax Group PLC                                             Tel: +44 (0) 121 455 8370
Tel: +44 (0) 121 433 3444                                      Mobile: +44 (0) 7785 703523
E-mail: info@metalraxgroup.co.uk
www.metalraxgroup.co.uk


Editors Note:

Metalrax Group is a broad-based manufacturing and marketing group of businesses,
exporting to over 50 countries. Precision manufacturing activities provide
supplies to automotive, telecommunications, off-road vehicles and bar display
markets. Engineering and support services provide surface coated metals,
architectural steelwork, mezzanine flooring and storage equipment. Housewares
operations produce and market the majority of bakeware sold in Great Britain
together with associated ranges of kitchen tools.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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