RNS Number : 7140U
  Metalrax Group PLC
  19 May 2008
   

    19 May 2008
    Metalrax Group PLC

    Interim Management Statement

    Metalrax Group PLC ('Metalrax' or 'the Company'), the niche supplier of specialist engineering and consumer durable products, today
announces its interim management statement for the period from 1 January 2008 to 19 May 2008.


    Strategic Review

    Metalrax continues to implement actions relating to the strategic and structural turnaround of its business following the conclusion of
the review announced on 16 January 2008. In this announcement Metalrax stated that it would focus on businesses that operate in niche
markets, have significant growth potential and barriers to entry and can each be expected to contribute meaningful profits. 

    The Company also announced its intention to exit its high volume, low margin automotive businesses that are unlikely to make a
meaningful contribution to profits. 


    Corporate Developments

    On 25 January 2008 Metalrax acquired Post Glover Lifelink ('PGL') from Halma p.l.c. for a cash consideration of approximately $6.0
million (£3.0 million). PGL, which is based in Erlanger, Kentucky, USA, is a world leading manufacturer of isolated electrical power
systems and electrical raceways for the medical, laboratory and educational sectors. The acquisition was expected to be immediately earnings
enhancing and was funded from Metalrax's existing cash and debt facilities. PGL, which has significant growth opportunities, has performed
ahead of the Board's expectations following its acquisition.

    Subsequently, on 14 February 2008, Metalrax disposed of the net assets of the Bacol Fine Blanking business for a cash consideration of
approximately £0.5 million to Rical Limited. 

    Most recently, on 14 May 2008 the Company announced 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. 


    Directorate Changes

    Michael Stock was appointed as Group Finance Director on 2 April 2008, following the resignation of William Kelly, the previous finance
director, on 15 January 2008. 

    Ian Paling, previously CEO of Corin Group PLC, was appointed as a Non-Executive Director on 4 April 2008.


    Trading

    Metalrax, to date, has been largely successful in passing onto customers increases in input prices. Consumer Durables and the core
businesses within Specialist Engineering are showing good improvements over the prior year and in aggregate are expected at least to meet
management's expectations for the six months ending 30 June 2008. However, the current difficult market conditions have impacted performance
in other group companies. In light of the above, the Board is pleased to report that it expects Metalrax's performance for the half year
ending 30 June 2008 to be broadly in line with its expectations.

    Finally, the Group's cash position is currently ahead of the Board's expectations, reflecting the working capital reduction programmes
in which management is actively engaged, and will continue to focus on throughout the year.


    - ends -

    For further information:

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

 Arden Partners plc
 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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