MRX Metalrax Group

RNS Number:2787A
Metalrax Group PLC
16 July 2007


This release replaces 2598A with a change in the fifth paragraph. Exceptional
costs incurred at 30 June 2006 has now been changed to 30 June 2007.

                                                                    16 July 2007

                               Metalrax Group PLC
                          ("Metalrax" or "the Group")

                                  Trading Update

Metalrax, the niche worldwide supplier of specialist steel products to the
automotive, engineering support services and housewares sectors, today announces
a trading update for its half year ended 30 June 2007 in line with best
practice. In a separate announcement today, Metalrax is also announcing an
update to its Board succession planning through the appointment of a new Group
Chief Executive.

At the time of the Group's Annual General Meeting, on 23 May 2007, the Board
announced that the Automotive division had been held back by the protracted
integration of the Belsize acquisition into Bacol Fine Blanking and that the
Engineering Support Services division was experiencing a weakening in demand in
a number of its markets. At that time, the Board were cautiously optimistic that
actions taken by management would achieve an improved underlying performance
(pre exceptional items) for the year as a whole.

Contrary to these expectations, the benefits of the actions taken to address
these issues will not be realised during 2007. We, therefore, now anticipate
that, following what will be a similar weak performance in the first half as in
the previous year, the performance for the second half of the current year will
be below that achieved in last year's strong second half. This is expected to
result in a performance for the year as a whole (pre exceptional items) which
will be less than that achieved in 2006.

The Board is taking further actions to address these issues, including
management and organisational changes at the Bacol Fine Blanking and Belsize
business. We are confident that these actions will restore profitability in this
business by 2008, albeit from a lower revenue base as we phase out customers
contracted on unsustainable terms. In the Engineering Support Services Division,
we have stepped up sales efforts to mitigate the weakening demand that has
affected a number of businesses.

Exceptional costs continue to be incurred as a result of the reorganisations,
particularly in relation to Belsize. As at 30 June 2007 these amounted to around
#2.0 million, with further costs to be incurred in the second half. The Group is
close to finalising the disposal of two properties, released as a result of the
reorganisations, which if completed, will raise approximately #4.0 million in
cash. This will produce a book profit which will substantially offset some of
the exceptional costs for the year.

The Group will provide a further update on current trading at the time of the
Group's interim results which are expected to be issued on 24 August 2007

Enquiries:

Metalrax Group PLC                                  0121 433 3444
Richard Arbuthnot, Chief Executive
Bill Kelly, Group Finance Director

Smithfield Consultants                              020 7360 4900
Katie Hunt / Will Swan / Reg Hoare


Notes to Editors:

Metalrax Group PLC is a niche worldwide supplier of specialist steel products to
the automotive, engineering support services and housewares sectors, with
operations in the UK and Romania. The Group has been listed on the London Stock
Exchange since 1964 (Ticker: MRX.L).

Metalrax has three divisions:

mrx automotive concentrates on precision manufacturing activities providing
supplies to automotive, telecommunications and off-road vehicles. This division
also manufactures for the enclosure and brewery bar display markets.

mrx engineering support services, provides surface coated metals, architectural,
primary and secondary steelwork, mezzanine flooring and storage equipment and
also distributes tools, fasteners and janitorial products.

mrx housewares, produces and markets bakeware, together with associated ranges
of kitchen tools to both retail and commercial markets in the UK and
internationally.




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

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