RNS Number : 6524K
  Metalrax Group PLC
  23 December 2008
   

    
    23 December 2008
    Metalrax Group PLC ("Metalrax" or "the Group")

    Sale of MRX Automotive
    Metalrax, the niche supplier of specialist engineering and consumer durable products, today announces that it has sold all of the assets
of Smethwick based MRX Automotive Limited, excluding its property, debtors and creditors to Sertec Birmingham Limited ("Sertec"). The cash
consideration comprises an initial sum of �225,000, together with a deferred consideration of approximately �450,000. The deferred
consideration represents the estimated value of inventory at completion less amounts for certain existing financial obligations,
approximately �400,000 of which is payable in Q1 with the balance payable in equal instalments during H2. 
    The MRX Automotive business, which has approximately 120 employees who will transfer to Sertec under TUPE conditions, is engaged in the
production of high volume, low margin components for the automotive industry. 
    In the year ended 31 December 2007 the MRX Automotive business, based on audited numbers, made �nil operating profit before exceptional
items and tax; and a loss before tax of (�0.9) million on turnover of �13.4 million. As at 30 June 2008 the assets being disposed of had a
book value of c.�2.4 million . The asset write-down, which will appear as an exceptional item in the Group's accounts, will amount to c.�1.5
million. Taking into account the estimated net consideration and the settlement of the creditors and debtors being retained, Metalrax
anticipates realising �850,000 from the sale of MRX Automotive.

    The Directors intend to use the proceeds of the sale to reduce debt and to provide foundation for the continuing transformation of the
Group into a specialist engineering company operating in growth market sectors.

     Andrew Richardson, Chief Executive of Metalrax, commented:
    "The disposal of the business assets of MRX Automotive is part of Metalrax's continued reorganisation of existing operations and
completes the Group's strategy of exiting the high volume, low margin automotive sector as outlined in January 2008".
    For further information, please contact:

 Metalrax Group PLC
 Andrew Richardson, Chief Executive  0121 433 3444

 Arden Partners
 Chris Fielding                      020 7398 1600
 Steve Douglas                       0121 423 8900

 Hogarth Partnership                 020 7357 9477
 Rachel Hirst
 Andrew Jaques
 Anthony Arthur


                


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