RNS Number : 3686U
  Metalrax Group PLC
  14 May 2008
   

    14 May 2008

    Metalrax Group PLC

    Proposed closure of the Down & Francis business


    Metalrax Group PLC ('Metalrax'), the niche supplier of specialist engineering and consumer durable products, today announces, subject to
employee consultation, the proposed closure of its Down & Francis business, a division of Metalrax Engineering Support Services Ltd, on or
around 13 June 2008. Down & Francis is a Kings Norton based producer of structural steel products with 36 employees.

    Down & Francis has incurred trading losses on a monthly basis for over three years due to inadequate sales revenue. During the last six
months actions have been taken to strengthen management and systems within the Down & Francis business. Regrettably these have not achieved
sufficient impact, order intake has not improved and significant losses have continued.

    In the year ended 31 December 2007, Down & Francis incurred an operating loss before interest and central charges, but before
exceptional costs, of £481,000 and after exceptional costs of £2,422,000. Gross assets of the business (excluding cash) at that date
amounted to £2,080,000. 

    The savings from the continued losses incurred by Down & Francis will significantly strengthen Metalrax's financial outlook. In
addition, the closure will free up 23,495 square feet at Metalrax's 39,000 square feet freehold property on Ardath Road, Birmingham, which
also houses the group's head office. The Directors intend to market the property, which was valued at £1.7 million as at 31 December 2007,
following the closure and re-locate the head office.

    Andrew Richardson, Chief Executive of Metalrax, said:

    "The proposed closure of Down & Francis will if implemented be another step forward in the strategic and structural turnaround of
Metalrax following the review of the business announced in January 2008.

    "The directors believe that the elimination of the losses from this business will significantly strengthen Metalrax's financial
outlook."

    - ends -

    For further information:

 Metalrax Group PLC                             0121 433 3444
 Andrew Richardson, Chief Executive
 Michael Stock, Group Finance Director

 Arden Partners
 Chris Fielding                                 020 7398 1600
 Steve Douglas                                  012 1423 8900

 Hogarth Partnership
 Andrew Jaques / Rachel Hirst / Anthony Arthur  020 7357 9477


    Notes to editors

    *     A copy of this announcement, together with other information about Metalrax may be viewed on its website: www.metalraxgroup.co.uk
    *     Metalrax Group PLC has two divisions:
    *     Specialist Engineering, which includes niche and specialised automotive and engineering support services businesses; and

    *     Consumer Durables, which produces bakeware and kitchen products under the brands Mermaid, Longlife Utensils, Progress and
Microwise


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