RNS Number : 9489W
  Metalrax Group PLC
  18 June 2008
   

    18 June 2008


    Metalrax Group PLC ("Metalrax")

    Closure of the Down & Francis business


    Metalrax, the niche supplier of specialist engineering and consumer durable products, today announces the closure of its Down & Francis
business with immediate effect.

    The proposed closure of Down & Francis, a division of Metalrax Engineering Support Services Ltd, was announced on 14 May 2008 subject to
employee consultation.  The closure will exclude a small number of remaining contracts which will be completed during the next three
months.

    Down & Francis is a Kings Norton based producer of structural steel products with 36 employees. Up to 10 of its employees will be
retained to complete the remaining contracts.

    In the year ended 31 December 2007, Down & Francis incurred an operating loss before interest and central charges, but 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 following the closure and re-locate the head office.

    The Board anticipate that the closure of Down & Francis will be cash neutral, before taking into account the net proceeds of the
intended property disposal.


    Andrew Richardson, Chief Executive of Metalrax, said:

    "The closure of Down & Francis, although disappointing, is 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                                  0121 423 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:

            o   Specialist Engineering, which includes niche and specialised automotive and engineering    
                 support services businesses; and
                        o   Consumer Durables, which produces bakeware and kitchen products under the brands 
                             Mermaid, Longlife Utensils, Progress and Microwise



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